API based development is the key to modern digital operations. It enables organizations and build consistent and reliable application infrastructure. But, this widespread utilization presents many security and governance challenges. If APIs are not properly managed, it can be vulnerable for cyberattacks. Apart from this, since APIs handle sensitive data, if there are no proper security measures, it can lead to compliance issues with industry and regional regulations. According to recent report, only 10% of organizations fully document their APIs which necessitates the need for strong API governance and compliance.

This blog explores the fundamentals of API Governance and Compliance. Learn more about how security teams can achieve API Governance and Compliance. Let’s get into the details.

What is API Governance and Compliance

API Governance and API Compliance are key aspects of managing and protecting APIs within the security teams. API Governance means establishing policies and frameworks to supervise management across entire lifecycle of API’s. It is essential to maintain consistency, security and alignment with security teams goals. While, API Compliance means ensuring APIs comply to laws, regulations and industry standards specifically for data protection and security. It is essential to secure sensitive data by implementing strong API Security measures.

Why is API Governance and Compliance Important

API governance and compliance is crucial for effective operation of modern digital ecosystem. Here’s a breakdown of why they are important for APIs:

API Governance significance include,

Quality and Consistency

By implementing consistent principles and practices, API governance confirms uniformity across all the APIs and improves their dependability. It also helps reduce challenges in integration.

Compliance and Security

A strong API governance framework helps regulate access controls, implement security policies, protects APIs against probable threats and ensure adherence to regulatory requirements.

Efficiency

By implementing effective guidelines and best practices, security teams can simplify processes, promote API reuses, and facilitate time-to-market for new services.

and API Compliance significance include,

Meeting Regulations

Compliance ensures that APIs meet all the industry specific regulations like GDPR and PCI-DSS. It helps security teams from heavy penalties and exhibits commitment towards legal and ethical standards.

Data Protection

Adhering to compliance standards enables responsible handling of sensitive information, maintains trust and protects user data.

Mitigation of Risk

Compliance minimizes the likelihood of data breaches, legal penalties and protects the security teams from financial and reputational damages.

What are the Common API Governance and Compliance Standards

Setting strong API Governance and Compliance is crucial for the organization’s security teams to ensure their APIs are protected and aligned with security objectives. However, there is no universal standard for API governance, various frameworks and protocols are adopted to guide security teams in implementing effective governance practices. Here’s a breakdown on common API Governance and Compliance Stands

GDPR (General Data Protection Regulation)

GDPR emphasize on secure sensitive data handling. It establishes that, organizations which handles sensitive data of EU residents must maintain stringent privacy and security standards. This regulation requires transparency in terms of data processing and provides individuals the rights over their data. Non-compliance of GDPR may result in hefty penalties.

PCI-DSS (Payment Card Industry Data Security Standard)

Payment Card Industry Data Security Standard (PCI-DSS) establishes security requirements for security teams to handle credit card information. API’s that are involved in payment processing should comply with PCI DSS to make ensure secure transactions are in place and also protect card holder’s sensitive data.

NIS2 (Network and Information Security Directive 2)

The goal of NIS2 is to improve cybersecurity across EU which requires security teams to enforce strong security measures. It focuses on improving risk management and incident response practices to ensure resilience against cyber threats and security attacks. Complying to this standard helps in protecting important infrastructure and services.

DORA (Digital Operational Resilience Act)

DORA establishes standards for secure API operations and helps improve digital operational resilience in the EU. It highlights the importance of strong IT risk management and incident response capabilities. Compliance help financial institutions maintain advanced level of digital security and resilience.

OpenAPI Specification (OAS)

OAS provides a framework for building and documenting APIs. It helps promote clear, understandable and consistent API documentation. Besides this, it aids in compliance efforts with transparency, standardization and helps developers create well-structured APIs that is easier to manage and secure.

HIPAA (Health Insurance Portability and Accountability Act)

HIPAA protects the privacy and security of digital health information that includes APIs in the US. It defines strict guidelines for handling personally identifiable health data. Apart from this, it also ensures data confidentiality and integrity. Compliance is essential for healthcare providers and organizations.

SOC 2 (Service Organization Control 2)

SOC 2 is a framework that is developed to maintain customer data securely to ensure confidentiality, integrity, availability and privacy. It is specifically relevant for cloud native services and APIs that handle sensitive data.

Challenges of API Governance and Compliance

Many security teams multiple challenges in implementing effective governance and comply with evolving regulations. Here’s a breakdown of some of the common challenges of API Governance and Compliance.

API Sprawl and Visibility

API Sprawl and visibility happens security teams lose visibility in their APIs, which leads to deprecated or hidden APIs that could expose sensitive data. This type of lack of visibility makes it difficult to ensure governance and compliance standards for all APIs. Without effective visibility, security teams could risk non-compliance and security breaches.

Misalignment with Specifications

All APIs are required to align with standardized specifications to ensure security and compliance. Any misalignment can result in security vulnerabilities and violations of compliance. Regular automated checks and audits helps APIs to conform to the specifications and maintain governance standards. This alignment is very important to prevent potential security risks.

Complexity of Regulations

To maintain compliance with different and evolving regulations is difficult. Security teams must stay updated about changes in laws and standards across various jurisdictions. Non-Compliance can lead to legal penalties and reputational damage. Constant updates to compliance strategies are important to adapt to these changes.

Employee Actions

Employees may accidently bypass the compliance guidelines, in the pressure of meeting the deadlines. This could result in non-compliance and security issues. Educating and training employees on compliance policies and implementing measures like regular automated checks can help mitigate such risks. Clear communication of compliance expectations are very crucial.

Resource Constraints

Resource constraints like budget and staff limitations can restrict efficient API governance and compliance. Security teams are required to allocate sufficient resources to execute strong API governance frameworks and compliance measures. This includes investing in training and tools to support the efforts of compliance.

Best Practices to Achieve API Governance and Compliance

To ensure APIs are well managed, secure and compliant with security standards, API Governance and Compliance best practices are implemented. Here’s a breakdown of some of the best practices.

Implement Regulatory Compliance Standards

Strictly implementing regulatory standards like GDPR, PCI-DSS and HIPAA ensure that all the APIs comply with laws and regulations. It includes implementing specific security and privacy controls to protect sensitive data. Compliance helps maintain user trust and reduce legal risks which is crucial for business continuity.

Set a Centralized API Governance Framework

A centralized framework is required to maintain scalability and consistency across all API’s. It clearly defines, helps monitors and implements governance practices effectively, and reduces fragmentation and improves collaboration. This approach enables security and compliance standards. By centralizing governance security teams can manage API sprawl and ensure all APIs abide to policies.

Define and Implement Clear Policies

Clear policies removes ambiguity by clearly defining roles, responsibilities and decision making process. Auditing regularly ensure compliance with set standards, promotes dependability and consistency across APIs. Well defined policies also help in maintaining risks and ensure accountability. This level of clarity is very important to maintain trust and compliance.

Assign the Ownership and Accountability

Assigning the ownership helps in ensuring accountability throughout API lifecycle. This approach requires identifying important stakeholders and define their roles clearly which will help improve collaboration and communication. Clear ownership help in resolving the issues quickly and promptly and makes sure that all the APIs meet governance standards. This also builds a culture of responsibility within the security teams.

Maintain a Central API Catalog

Centralized API Catalog improves API discoverability and reusability which assists in governance and compliance efforts. It offers a single source of truth for all APIs and makes it easier to maintain and control them. This catalog aims at properly documenting and maintaining API’s to minimize errors and improve compliance.

Automate Compliance Checks

When compliance checks are automated, it ensures API’s are met with regulatory standards consistently. This will minimize errors and manual effort, guarantees that APIs comply with regulations and laws. Besides this, it also helps in spotting potential compliance issues at the earliest, which allows for swift action to maintain security.

Final Thoughts

By Implementing API Governance and Compliance best practices security teams can maintain trust with users, protect sensitive data and prevent legal repercussions.

Akto API Security platform plays significant role in securing APIs as well as achieve API Governance and Compliance through its unique features such as:

Automated Security Testing

Akto delivers a large, customizable API security test library that includes multiple tests for OWASP API top 10 vulnerabilities, authorization, authentication and business logic testing. This automated testing helps in maintaining API security and API compliance with industry standards.

Extensive API Inventory

Akto helps discover and maintain up to date inventory of all the APIs like REST, GraphQL and gRPC automatically. This extensive visibility ensures that security teams can manage and monitor their complete API ecosystem effectively.

Continuous Security Posture Management

Akto continuously monitors security risks of all the APIs. This helps security teams improve their API security posture and avoid security breaches to ensure API compliance.

All this and more features in Akto, collectively ensure that APIs are protected, well documented and compliant with regulatory requirements and strengthens the overall API governance.

To experience such features at first hand. Connect with API Security experts at Akto.io and Book a free demo today!