Regulatory Compliance
Halt | January 6, 2023 | 0 Comments

What Is Regulatory Compliance? Top 4 Compliance Frameworks

Regulatory compliance refers to a company’s adherence to compliance laws, requirements, and regulations to secure the sensitive data of customers, employees, and third-party partners. Depending on the data type that companies collect, and the region they operate in, companies can be obligated to follow different compliance regulations. Simply, companies must comply with the compliance requirements and standards at all times, otherwise, they will be subject to severe regulatory penalties and fines.

On top of this, not complying with regulations can harm a company’s reputation and trustworthiness because these standards and requirements are proof of having some security practices and policies in place to protect the confidential data of customers and employees. In short, adhering to compliance regulations can help businesses build a good reputation and image in the eyes of customers and employees.

But, complying with regulations and standards can’t ensure the complete safety of the sensitive data that you’re holding because most regulations only require the minimum amount of security policies and practices. So, companies should be cybersecurity compliant rather than being simply compliant. For more information on compliance, visit:

https://nordlayer.com/blog/cybersecurity-compliance-everything-you-need-to-know/

Top Regulatory Compliance Frameworks

Is the Compliance Rule Being Followed

1- Health Insurance Portability and Accountability Act (HIPAA)

The Health Insurance Portability and Accountability Act (HIPAA) came into practice in 1996. HIPAA law applies to all sizes of companies that gather, store or transfer health-relevant sensitive data. HIPAA isn’t a global compliance law, it only obligates companies that are located in the United States. Also, HIPAA obliges companies’ business partners, and even their cloud service providers as they handle, send and receive health relevant sensitive information.

HIPAA regulation is grounded on three rules that are privacy, security, and breach notification. The privacy rule requires businesses not to disclose any health-relevant information of patients, meanwhile, the security rule obliges businesses to follow HIPAA security standards to establish the safety, integrity, and confidentiality of health-relevant sensitive data. Lastly, the breach notification rule requires businesses to notify affected parties after a data breach incident happened. Not complying with HIPAA regulation can lead to penalties and monetary fines that can be as high as 1.5 million dollars annually.

2- Federal Information Security Management Act (FISMA)

Federal Information Security Management Act (FISMA) is a United States law that was regulated in 2002. FISMA applies to every federal agency and their business associates in the U.S. This law requires federal entities to follow compulsory security processes and system controls to establish the security, integrity, and confidentiality of the data related to national security, government assets, federal operations, or economic interests. Simply, FISMA sets a security standard for national-level agency systems. Also, this law’s requirements cover information system inventory, risk categorization, security plan & control, risk assessment, and certification. Complying with FISMA requirements can help federal agencies to mitigate security risks and better safeguard confidential data against cyber attacks.

Compliance With Search Engine Optimization Requirements

3- General Data Protection Regulation (GDPR)

General Data Protection Regulation (GDPR) is a privacy and security law that was regulated in 2016, and it applies to every business that collects confidential data of European Union citizens. GDPR obliges businesses to be transparent about data collection processes and give customers crystal clear terms and conditions. GDPR requires businesses to handle the data processing in ways that will establish the confidentiality and integrity of customers’ personal information.

Also, when a data breach occurs, this regulation obliges companies to inform affected parties within 72 hours after the incident. Under the GDPR regulation, businesses are accountable for the privacy and security of EU-based citizens’ confidential data.GDPR is considered one of the most rigid privacy and security laws in the globe, and it has severe fines and penalties. Violating or not complying with GDPR regulation can lead to fines and penalties that can be up to 40 million euros or 4% of the global revenue of the business in question.

4-The Payment Card Industry Data Security Standard (PCI-DSS)

The Payment Card Industry Data Security Standard (PCI-DSS) applies to all companies that take payment via credit, debit, and cash cards. PCI-DSS regulation was created in 2004 with the collaboration of four giant credit card companies which are MasterCard, American Express, Visa, and Discover. In this regard, PCI-DSS is a global and non-governmental compliance regulation that seeks to enforce a set of security policies and procedures to protect confidential credit card information.

PCI-DSS requires businesses to follow twelve security requirements to secure and protect credit card holders’ data. These requirements are categorized into six main headings. PCI-DSS requirements oblige businesses to implement firewalls, data encryption, identity & access controls, and anti-virus tools. Also, PCI-DSS requires businesses to monitor corporate networks, test security systems periodically, and create an information security policy.

Regulatory Compliance Frameworks

Not complying with PCI-DSS regulations can have severe consequences. For instance, violation of PCI-DSS requirements can lead to fines that are up to 500,000 dollars monthly. Also, in more serious violations PCI-DSS authorities can cancel companies’ credit card merchant licenses for a period of time or for good.

Last Words

In our modern age, all sizes of businesses are subject to at least one compliance regulation. Adherence to compliance requirements is critical for improving security and protecting confidential data. But, being a compliant company can get you to a certain extent, that’s why you should focus on being a cybersecurity-compliant company.

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