Compliance
Compliance is the process of ensuring that an organization follows the relevant laws, regulations, policies, and standards that apply to its activities and operations. Compliance helps an organization avoid legal penalties, reputational damage, and operational inefficiencies.
Compliance also supports the governance and risk management functions of GRC by providing feedback on the alignment of business objectives with external and internal requirements, and by identifying and mitigating potential compliance risks.
Some examples of compliance activities are auditing, monitoring, reporting, training, and remediation.
Examples on Compliance (laws, regulations, policies or regulations)
Compliance is the act of following the rules and standards that apply to a certain organization, industry, or activity. Compliance laws, regulations, policies, and standards are designed to ensure that the entities involved operate in a lawful, ethical, and safe manner. Some examples of popular compliance laws, regulations, policies, and standards are:
- The General Data Protection Regulation (GDPR): This is a European Union law that protects the privacy and personal data of individuals in the EU and the European Economic Area. It also regulates how organizations collect, process, store, and transfer personal data across borders.
- The Sarbanes-Oxley Act (SOX): This is a US law that aims to prevent corporate fraud and improve the accuracy and reliability of financial reporting. It requires public companies to maintain internal controls over their financial activities and to have their financial statements audited by independent firms.
- The Health Insurance Portability and Accountability Act (HIPAA): This is a US law that protects the confidentiality and security of health information. It sets standards for how health care providers, insurers, and other entities handle and share health information of patients and customers.
- The International Organization for Standardization (ISO): This is an international body that develops and publishes standards for various fields and industries. ISO standards cover topics such as quality management, environmental management, information security, social responsibility, and more.