What is NIST compliance? Requirements and tips

If your organization handles sensitive data or works with government agencies, you've likely heard of NIST compliance. But what does it mean? 

That's the question many IT managers and executives ask when they first encounter these security standards. And it's a fair one. Between the technical jargon, multiple frameworks, and hundreds of security controls, NIST can seem overwhelming at first glance. 

But beneath the complexity lies something surprisingly practical: a structured approach to protecting what matters most in your organization. This guide breaks down what NIST compliance actually means for your business, why it matters, and how to implement it without the headaches.

What is NIST compliance?

NIST (the national institute of standards and technology) is a non-regulatory federal agency within the U.S. department of commerce. Think of them as the people who establish the standards and measurements that make modern technology work consistently. From the precise definition of a second to cybersecurity frameworks, NIST creates guidelines that help organizations speak the same technical language.

In the context of IT and cybersecurity, NIST compliance means your organization follows specific NIST cybersecurity standards and frameworks, such as the NIST SP 800-53 or NIST SP 800-171. These frameworks aren't arbitrary rules, rather they represent the collective wisdom of government and industry experts on how to protect information systems effectively.

What makes NIST particularly valuable is its practical, risk-based approach. Rather than prescribing one-size-fits-all solutions, NIST frameworks help you identify your specific risks and implement appropriate controls. It's less about checking boxes and more about building security that actually works for your organization's unique needs.

For many businesses, especially those working with the federal government, NIST compliance isn't optional. Federal agencies and their contractors must follow specific NIST guidelines by law. But even for organizations without these requirements, NIST provides a robust foundation for security practices that protect against modern threats.

NIST vs ISO vs SOC 2: Key differences

If you've been researching security compliance standards, you've likely encountered not just NIST but also ISO and SOC 2. All three represent major security frameworks, but they serve different purposes and work in different ways:

1. Scope and applicability

NIST frameworks were developed primarily for U.S. federal agencies and their contractors, though they've become widely adopted across industries. They're especially relevant if you handle federal information or want to work with government agencies.

ISO (international organization for standardization) develops standards across many industries and domains, but in cybersecurity contexts, we're typically referring to security-specific standards like ISO 27001. ISO 27001, the primary information security standard, is internationally recognized and applies across sectors and national boundaries.

SOC 2 (system and organization controls 2) is specifically designed for service organizations that process, store, or transmit sensitive customer data. It's particularly relevant for SaaS companies and other technology service providers looking to demonstrate their commitment to security.

2. Implementation complexity

NIST frameworks tend to be highly detailed and comprehensive. For example, NIST 800-53 contains over 1000 security controls across 20 control families. This depth provides excellent guidance but can be overwhelming without dedicated resources.

ISO 27001 takes a more streamlined approach with approximately 114 controls grouped into 14 domains. It focuses on establishing a complete information security management system (ISMS) rather than prescribing specific technical controls.

SOC 2 is the most flexible of the three, allowing organizations to determine which of the five trust principles (security, availability, processing integrity, confidentiality, and privacy) apply to their services. This customizable approach makes implementation more targeted.

3. Certifications

Here's a key practical difference: While many organizations seek NIST certification, NIST itself doesn't offer formal certification. You implement the controls appropriate to your organization and may need to demonstrate compliance through assessment, but there's no official "NIST certified" designation.

ISO 27001 provides formal certification through accredited third-party auditors. This certification is internationally recognized and lasts for three years with surveillance audits conducted annually.SOC 2 results in an audit report rather than certification. Type 1 reports assess your systems at a specific point in time, while Type 2 reports evaluate their effectiveness over a period (usually 6-12 months).

4 benefits of NIST compliance

Here's how NIST compliance strengthens your organization:

1. Strengthened infrastructure

NIST frameworks help you identify and address vulnerabilities before they can be exploited. By implementing comprehensive security controls, you create multiple layers of protection that make successful attacks significantly harder. This strengthened infrastructure doesn't just prevent breaches but also improves overall system reliability. 

2. Effective risk management

Rather than treating security as a collection of technologies, NIST promotes a risk-based approach that focuses resources where they matter most. This approach helps you identify your most critical assets, understand the threats they face, and implement appropriate protections. This systematic approach to risk prevents both over-protection (wasting resources on low-risk assets) and under-protection (leaving critical systems vulnerable). The result is a security investment that delivers maximum value.

3. Improved bonds with government entities

For organizations working with federal agencies, NIST compliance is essential. Federal contractors must demonstrate compliance with relevant NIST standards, and even if you don't currently work with government agencies, demonstrating NIST compliance can open doors to federal contracts in the future. 

4. Competitive advantage

While security doesn't always take center stage in sales conversations, it increasingly influences purchasing decisions. Organizations that can demonstrate robust security through NIST compliance gain a competitive edge, particularly in industries where data protection is paramount.

Types of NIST compliance frameworks

1. Cybersecurity framework (CSF)

The NIST cybersecurity framework provides a flexible, risk-based approach to cybersecurity that any organization can use. It organizes security activities into five core functions: identify, protect, detect, respond, and recover.

What makes the CSF particularly valuable is its adaptability. Organizations of any size and sophistication can implement it, focusing on the most relevant aspects for their specific risks. While voluntary for most organizations, the NIST CSF has become the foundation for cybersecurity programs across industries.

2. NIST 800-171

NIST SP 800-171 focuses specifically on protecting controlled unclassified information (CUI) in non-federal systems. This framework is mandatory for federal contractors who handle CUI, with compliance required by DFARS (defense federal acquisition regulation supplement) and other federal regulations.

The latest revised framework includes 97 security requirements across 17 families, from access control to system and communications protection. Unlike the NIST CSF, 800-171 includes specific requirements that organizations must implement rather than general guidance.

3. NIST 800-53

NIST SP 800-53 provides the most comprehensive security controls catalog of any NIST publication. With over 1000 controls across 20 families, it offers detailed security guidance for federal information systems.

While primarily designed for federal agencies, 800-53 has become a reference point for organizations seeking broad security controls. Many private sector companies use it as a resource when building robust security programs, even if full implementation isn't required.

4. NIST 800-213

NIST SP 800-213 addresses the security of internet of things (IoT) devices. As organizations increasingly deploy connected devices, from smart building systems to manufacturing equipment, securing these devices becomes critical.

This newer framework provides guidance on IoT device cybersecurity requirements and helps organizations integrate these devices into their security programs. It's particularly relevant for organizations with significant IoT deployments in their environments.

Who is required to be NIST compliant?

NIST compliance requirements vary depending on your organization's relationship with the federal government and the types of data you handle. Here's who needs to pay attention:

• Federal agencies have the clearest mandate. They must comply with the federal information security modernization act (FISMA), which requires implementing NIST standards, particularly NIST 800-53.
• Federal contractors and subcontractors working with controlled unclassified information (CUI) must comply with NIST 800-171. This requirement comes through DFARS and other federal acquisition regulations.
• Healthcare organizations that handle electronic protected health information (ePHI) should note that while HIPAA doesn't explicitly require NIST compliance, the NIST 800-66 guide helps implement HIPAA security requirements effectively.
• Critical infrastructure providers, while not legally required to implement NIST standards in most cases, are strongly encouraged to adopt the NIST cybersecurity framework as part of national security initiatives.

For organizations without these specific requirements, NIST compliance remains voluntary but valuable. Many adopt NIST frameworks as best practices to strengthen their security posture and demonstrate due diligence to clients and partners.

How to prepare for a NIST compliance audit: 5 steps

Whether you're facing a formal NIST assessment or conducting an internal audit, preparation is key to success. Here's a step-by-step approach:

Step 1. Conduct a risk assessment

Before diving into specific controls, understand your organization's security landscape. Identify your critical assets, the threats they face, and existing vulnerabilities. This assessment helps prioritize your compliance efforts where they matter most.

Step 2. Implement security controls

Based on your risk assessment and the applicable NIST framework, implement the necessary security controls. This typically includes technical measures (like encryption and access controls), administrative procedures (like security policies), and physical safeguards (like facility security). Focus on addressing high-risk areas first, but don't neglect foundational controls that support your overall security posture.

Step 3. Create a response plan

Even with strong preventive controls, security incidents can still occur. Develop comprehensive response plans that define how you'll detect, contain, and recover from potential incidents. Your response plan should include clear roles and responsibilities, communication procedures, and technical playbooks for common scenarios. 

Step 4. Document systems and network architecture

Auditors need to understand your environment to assess compliance. Create and maintain documentation of your systems, networks, data flows, and security controls. This documentation should include network diagrams, system inventories, data classification, and control descriptions. Keep it updated as your environment changes to ensure it accurately reflects your current state.

Step 5. Conduct internal assessments

Before an external audit, test your compliance through internal assessments. These reviews help identify and address gaps before they become audit findings. Internal assessments can take various forms, from technical security testing to documentation reviews to process walkthroughs. Involve different perspectives, including technical teams, business units, and security specialists, to ensure comprehensive evaluation.

4 risks of NIST non-compliance

Failing to implement appropriate NIST controls can expose your organization to significant risks, which include:

1. Data breaches

Without robust security controls, organizations become more vulnerable to data breaches and other security incidents. These breaches can expose sensitive customer information, intellectual property, or operational data, leading to financial losses and erosion of customer trust.

2. Loss of federal contracts

For organizations working with the federal government, non-compliance with relevant NIST standards can directly impact revenue. Federal agencies increasingly include specific NIST compliance requirements in contract language and verify compliance before award.

3. Fines and penalties

Depending on your industry and the types of data you handle, non-compliance with security standards can trigger regulatory penalties. While NIST itself doesn't impose fines, other regulations that reference NIST (like FISMA for federal agencies) include enforcement mechanisms. These penalties can be substantial. 

4. Reputational damage

Beyond direct financial impacts, security failures and compliance gaps can damage your organization's reputation with customers, partners, and the public. In today's security-conscious environment, this reputational impact can outlast the immediate incident.

4 tips for NIST compliance

1. Conduct regular security assessments

Security isn't a one-time project but an ongoing process. Regular assessments help identify new vulnerabilities, verify control effectiveness, and ensure your security keeps pace with evolving threats. Establish a schedule for different assessment types, including vulnerability scans, penetration tests, control reviews, and full risk assessments. Use the results to continuously improve your security posture rather than treating assessments as compliance checkboxes.

2. Rely on IT compliance software

Managing NIST compliance manually becomes increasingly difficult as your environment grows more complex. IT compliance software helps automate control implementation, monitoring, and reporting. These platforms can continuously assess your environment against NIST requirements, identify gaps and vulnerabilities, and document your compliance status. 

3. Constantly review regulatory requirements

NIST frameworks evolve as technology and threats change. Stay current with updates to relevant publications and adjust your security controls accordingly. Assign clear responsibility for regulatory monitoring and establish a process for evaluating and implementing necessary changes. This proactive approach prevents compliance gaps when requirements change.

4. Engage the entire organization

Security isn't just an IT responsibility, it requires participation from across your organization. Build security awareness through regular training, clear policies, and ongoing communication about security expectations. When employees understand security requirements and their personal role in protection, they become part of your defense rather than potential vulnerabilities. 

Streamline data security with Rippling

Implementing comprehensive security controls doesn't have to mean drowning in manual processes and fragmented tools. Rippling's unified IT platform can support certain aspects of your NIST compliance program through integrated identity, device, and access management.

Rippling makes compliance management more efficient by combining HR information and identity management in a single platform. This integration ensures that access rights automatically align with roles and employment status, addressing key NIST requirements for access control and user management.

For organizations implementing NIST frameworks, Rippling provides critical capabilities like:

• Granular access controls based on hundreds of user attributes, supporting zero-trust security models
• Automated lifecycle management that ensures appropriate access provision and revocation as employees join, move within, and leave the organization
• Dynamic security rules that adapt to changing roles and behaviors without manual intervention
• Comprehensive audit logs that document access activities for compliance verification
• Strong authentication options, including MFA enforcement and built-in password management

By building security into your core operational systems rather than adding it as a separate layer, Rippling helps make compliance sustainable without creating unnecessary friction for users. The result is stronger security that works with your business rather than against it.

FAQs on NIST compliance

What does "NIST" stand for?

NIST stands for the National Institute of Standards and Technology, a non-regulatory federal agency founded in 1901 as the National Bureau of Standards. As part of the U.S. Department of Commerce, NIST develops standards, guidelines, and best practices that help organizations address technical challenges and improve their operations. 

How much does NIST compliance cost?

The cost of achieving NIST compliance varies widely depending on company size, IT environment complexity, and the scope of required remediation. Initial assessments typically cost between $5,000 and $20,000, while remediation efforts can range from $35,000 to $115,000 if significant issues are identified. Additionally, ongoing costs for monitoring and maintaining compliance can range from $6,500 to $13,000 annually.

How often should businesses update their NIST compliance?

NIST compliance isn't a one-time achievement but an ongoing program that requires regular updates and assessments. At a minimum, organizations should conduct a full review of their compliance posture annually, verifying that controls remain effective and addressing any gaps that have emerged

What are the 5 standards of NIST?

The NIST cybersecurity framework core defines five essential functions:

• Identify: Understanding your systems, assets, data, and cybersecurity risks; creating an inventory of what needs protection
• Protect: Implementing safeguards including access control, awareness training, data security, and protective technology
• Detect: Monitoring activities to identify cybersecurity events through anomaly detection and continuous monitoring
• Respond: Activities triggered when incidents occur, including response planning, communications, analysis, and mitigation
• Recover: Maintaining resilience and restoring capabilities after an incident to minimize impact and return to normal operations

Together, these functions create a complete security cycle that helps organizations prepare for, withstand, and learn from security challenges.

This blog is based on information available to Rippling as of June 2, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.