In current, complex regulatory environment, businesses MUST –
- Deal with intricacies, costs, and overlays of governance requirements like Sarbanes, Oxley, Turnbull, Combined Code, etc.
- Stringently observe information-related regulations ranging widely from Data Protection Act to HIPAA, GLBA, PIPEDA, and Computer Misuse Act.
- Cope with increasing exposure to rapidly changing threat methods, so as to hack sensitive business information. This is exploited by technical vulnerabilities in IT systems, loopholes in processes, and employee’s behavioural characteristics.
Regulatory compliance must not be taken lightly. Laws and requirements have been established to protect your business and even your customers.
HIPAA [Health Insurance Portability & Accountability Act]
This act was established in the year 1996 and affects organizations handling personal health records including hospitals, clinics, dentists, pharmacists, and nursing homes. It protects patients’ rights to authorization of who can access their personal health data.
SOX [Sarbanes-Oxley Act]
This act was established in 2002 in reply to several major corporate’s accounting scandals. This act defines how to deal with corporate governance, financial reporting and auditing, so such scandals never occur again.
PCI DSS [Payment Card Industry Data Security Standards]
It was created to protect your card information. The credit card companies like MasterCard, Visa, Discover, and American Express need to abide an array of PCI DSS, so as to mitigate payment card theft and fraud. PCI is compulsory to organizations accepting card payment. The standard needs businesses to validate secure IT network, which safeguards the data of card holder, sustain vulnerability management program, carry out access control processes, and test their network regularly.
It is mainly concerned with privacy regulations and Data Protection Act. All organizations in the United Kingdom that store, transfer and process personal information NEED to be DPA compliant. In case, there is a data breach and you ignored carrying a DPA compliance certificate then penalties up to £500,000 can be levied by Information Commissioners office.
Basel III is the current regulatory standard established for financial sector in reply to the 2008 global financial crisis. Basel II was its predecessors, which ensured that banks keep aside sufficient capital to protect against financial, economic, and operational risks.
What happens if you fail regulation compliance?
- Severe punishments in the form of huge penalties and/or jail time.
- Damage business reputation
- Customers lose trust
- Unprotected financial data can be stolen and misused
Following rules and regulations strictly give customers confidence and comfort. Therefore, keep up with the rules and stay updated on changes that occur.