Depending on your company’s business, certain regulatory compliances may be mandatory. However, several voluntary commercial compliance frameworks may benefit your company, even though they’re not required.
For regulatory compliance, non-compliance can lead to significant fines, reputational damage, and increased risks of data breaches.
Compliances benefit business customers and consumers and help the compliant organization.
In this post, we’ve cataloged various standard compliances and provided a brief overview.
Certain companies help organizations verify many of these compliances. They may also act as Managed Service Providers (MSPs) compliance partners.
CIS: An On-Ramp to Compliances
CIS (Center for Internet Security) participation involves adhering to cybersecurity best practices designed to safeguard critical systems and sensitive data from cyber threats.
These controls protect data integrity and confidentiality in education, finance, healthcare, technology, and state and local government.
CIS Critical Security Controls create an on-ramp to comply with PCI DSS, HIPAA, GDPR, CMMC, and other regulations.
The controls are 18 prescriptive and simplified security best practices for organizations to strengthen their cyber security posture. Each control has a set of measurable “Safeguards” that specify one action.
The current version of the controls can be downloaded from the CIS website.
Commercial Security Frameworks
Commercial security frameworks help organizations align security measures with industry best practices, offering a clear path to robust data protection and operational resilience.
Service and Organization Controls 1 (SOC 1)
SOC 1 compliance focuses on the controls relevant to financial reporting, ensuring that a business’s internal controls are suitable for handling sensitive financial data. It is crucial for organizations that provide outsourced services affecting their clients’ financial statements, such as payroll processors or financial service providers.
These businesses need SOC 1 compliance to demonstrate to clients and auditors that they can maintain the accuracy and security of financial data, ultimately supporting trust and accountability in financial reporting processes.
Service and Organization Controls 2 (SOC 2)
SOC 2 compliance is a widely recognized standard for managing customer data based on five trust service principles: security, availability, processing integrity, confidentiality, and privacy.
Achieving SOC 2 compliance demonstrates that a business has implemented strong internal controls to protect sensitive information. These controls can enhance customer trust and differentiate the company in a competitive market.
Businesses that become SOC 2 compliant can reduce the risk of data breaches, improve operational efficiency, and meet regulatory requirements, making them more attractive to clients, especially those in highly regulated industries.
ISO 27001:2022
ISO 27001:2022 is an international standard for managing information security. It provides a structured framework for businesses to implement effective security controls, reducing the risks of data breaches and ensuring information confidentiality, integrity, and availability.
Becoming ISO 27001 compliant can enhance a company’s reputation by demonstrating a commitment to data security, building trust with clients and partners, and helping meet legal and regulatory requirements. Compliance also promotes a culture of continuous improvement, reducing the likelihood of security incidents and operational disruptions.
ISO 27017
Migration to the public cloud continues to grow. According to IDC, global spending on public cloud services will double between 2024 and 2028.
ISO 27017 is an international standard that provides guidelines for information security controls specifically designed for cloud service providers and customers. It aims to safeguard physical networks and virtual cloud infrastructure and complements ISO 27001 by addressing the unique risks associated with cloud environments.
Businesses that achieve ISO 27017 compliance benefit from enhanced cloud data protection, increased trust from clients and stakeholders, and improved risk management tailored to cloud-based threats.
Compliance also helps businesses meet legal and regulatory requirements, promoting smoother operations and potential market expansion by demonstrating a commitment to cloud security best practices.
PCI DSS: Protecting Credit Card Information
PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards developed and maintained by the PCI Security Standards Council. The standards are designed to protect cardholder data and ensure the secure handling of credit card information. This compliance applies to any business that processes, stores, or transmits payment card data, regardless of size or transaction volume.
To comply, businesses must implement measures such as maintaining secure networks, encrypting cardholder data, conducting regular vulnerability assessments, and enforcing strong access control policies.
FTC Safeguards Rule: Enhancing Data Protection
The FTC Safeguards Rule requires various financial institutions, including mortgage lenders, tax preparation firms, and even auto dealerships, to develop, implement, and maintain a comprehensive security program to protect sensitive customer information.
Compliance benefits businesses by reducing the risk of data breaches, ensuring customer trust, and avoiding penalties for non-compliance.
Adhering to the rule can improve a company’s overall data security practices, making it more resilient to cyberattacks and positioning it as a responsible and trusted entity in the marketplace.
Microsoft SSPA
Microsoft Supplier Security and Privacy Assurance (SSPA) compliance is a program designed to ensure that Microsoft’s suppliers handle data securely and in line with privacy regulations. Compliance with SSPA is crucial for businesses working with Microsoft, especially those that process sensitive or personal data on behalf of the company.
These businesses must meet stringent requirements to safeguard data, including encryption, access controls, and incident response measures. Achieving SSPA compliance maintains the business relationship with Microsoft and demonstrates a commitment to data protection, helping avoid costly security breaches and potential legal consequences.
U.S. Federal Compliance Regulations
This section outlines key regulations that govern data protection and privacy across various industries, ensuring businesses meet stringent legal standards for safeguarding sensitive information.
The Sarbanes-Oxley Act (SOX)
The Sarbanes-Oxley Act (SOX) was enacted in 2002 to enhance corporate governance and financial transparency in response to major accounting scandals such as those involving Waste Management and Enron.
SOX compliance is mandatory for all publicly traded companies in the U.S. and requires stringent measures to ensure accurate financial reporting, internal controls, and data security.
Businesses subject to SOX must implement proper oversight of financial practices and maintain audit trails to protect investors and prevent fraud. Non-compliance can result in severe penalties, making it crucial for organizations to adhere to SOX regulations to avoid legal and financial repercussions.
Gramm-Leach-Bliley Act (GLBA)
GLBA (Gramm-Leach-Bliley Act) compliance is crucial for businesses in the financial services industry, including banks, insurance companies, and other entities that handle personal financial data.
The GLBA mandates that these businesses implement stringent data protection policies to protect the confidentiality and security of sensitive customer information.
Compliance ensures businesses have safeguards to prevent data breaches, protect against unauthorized access, and maintain customer trust.
Failing to comply can result in regulatory fines, legal consequences, and reputational damage.
NIST 800-53
The NIST 800-53 privacy framework adheres to a set of security and privacy controls established by the National Institute of Standards and Technology (NIST) to protect sensitive information in federal systems and organizations. These guidelines help businesses safeguard data against cyber threats, breaches, and unauthorized access.
Specific industries, such as healthcare, finance, and government contractors, must achieve NIST 800-53 compliance to meet federal regulations, protect sensitive data, and reduce the risk of financial penalties or reputational damage from security incidents. Compliance also boosts customer trust and improves overall data security practices.
FINRA
FINRA (Financial Industry Regulatory Authority) compliance is essential for firms operating within the securities industry, including broker-dealers and investment advisors. It is designed to keep investors safe.
FINRA enforces rules designed to protect investors and maintain market integrity by requiring firms to adhere to strict guidelines related to record-keeping, reporting, and ethical business practices.
Companies in this sector must become compliant to avoid penalties, safeguard their reputation, and ensure transparency with their clients, which are critical for maintaining investor trust and operating within legal frameworks.
FFIEC
FFIEC compliance refers to the standards set by the Federal Financial Institutions Examination Council (FFIEC) to ensure financial institutions’ safety, soundness, and security.
Compliance with FFIEC standards helps businesses protect sensitive financial information, mitigate risks of data breaches, and meet regulatory expectations.
Specific companies in the financial sector need to become FFIEC compliant to safeguard customer trust, avoid fines or penalties, and ensure their operations meet stringent legal and industry security and risk management standards.
FISMA
FISMA (the Federal Information Security Modernization Act) compliance is essential for any business or organization that handles federal data or works with government agencies.
FISMA sets strict standards for protecting sensitive federal information, ensuring that systems and data are secured against cyber threats.
Businesses need to become FISMA compliant to protect the integrity of government data, avoid penalties, and maintain their eligibility for government contracts. Compliance demonstrates a commitment to high-security standards, which is increasingly vital for businesses partnering with federal agencies.
CJIS
CJIS (Criminal Justice Information Services) compliance is essential for organizations that handle sensitive criminal justice information, such as law enforcement agencies, cloud service providers, and businesses offering IT solutions to government entities.
Compliance protects sensitive data, including criminal records, biometric data, and other personal information, by adhering to strict security protocols. Businesses must become CJIS compliant to avoid legal risks, safeguard data integrity, and maintain trust with their clients in the criminal justice sector.
CMMC 2.0
Starting in 2025, the over 80,000 DoD contractors must be CMMC 2.0 compliant to be awarded DoD contracts.
The final rule for CMMC 2.0 (Cybersecurity Maturity Model Certification) was released in October 2024. It is a streamlined version of the original CMMC framework designed to ensure more robust cybersecurity practices among contractors working with the Department of Defense (DoD).
It introduces three maturity levels, focusing on safeguarding controlled unclassified information (CUI) and federal contract information (FCI).
Certain Level 2 and all Level 3 contractors must undergo a third-party assessment.
FedRAMP
The Federal Risk and Authorization Management Program (FedRAMP®) provides a standardized approach to security authorizations for cloud service offerings.
This program is analogous to ISO 27017 but on a U.S. federal level.
The authorization process includes a readiness assessment, pre-authorization, a full security assessment, an agency authorization subprocess, and post-authorization (continuous monitoring).
HIPAA and Other Data Privacy Regulations
There is a growing list of data privacy compliances as more countries, states, and provinces legislate specific privacy regulations.
HIPAA
HIPAA (Health Insurance Portability and Accountability Act) compliance is crucial for businesses that handle protected health information (PHI), such as healthcare providers, insurance companies, and third-party service providers.
The HIPAA Privacy Rule establishes guidelines for safeguarding PHI to ensure patient privacy and data security. Organizations must become HIPAA compliant to avoid substantial fines, legal liabilities, and reputational damage while maintaining the trust of patients and partners in the healthcare industry.
ISO 27701
ISO 27701 compliance focuses on enhancing privacy management by building on the information security standards of ISO 27001 and ISO 27002. It provides a framework for managing Personally Identifiable Information (PII) to meet global privacy requirements, such as the GDPR.
Businesses that handle large volumes of sensitive personal data, like healthcare, financial institutions, or tech companies, adopt ISO 27701 to mitigate privacy risks, ensure regulatory compliance, and demonstrate their commitment to protecting customer data. Compliance can also enhance trust and competitiveness in an increasingly privacy-conscious marketplace.
GDPR
GDPR (General Data Protection Regulation) compliance is essential for businesses that handle the personal data of European Union citizens and residents, regardless of where the company is based. The regulation protects consumer privacy and gives individuals greater control over their data.
Failure to comply with GDPR can lead to significant fines and reputational damage. Famously, Meta was fined $1.3 billion in 2023 by Ireland’s Data Protection Commission (DPC) for violating GDPR international transfer guidelines.
Specific businesses in e-commerce, healthcare, and technology must prioritize compliance because they routinely process sensitive personal data, making them more vulnerable to breaches and the associated penalties.
Regional Compliances
Essential Eight
Essential Eight compliance refers to cybersecurity strategies developed by the Australian Cyber Security Centre (ACSC) to help organizations mitigate cyber risks. The framework outlines eight key mitigation strategies, such as application whitelisting, patch management, and daily backups, designed to reduce the impact of security incidents.
Businesses, particularly those handling sensitive data or operating in critical industries, must become compliant to protect against increasing cyber threats, safeguard customer information, and meet regulatory requirements.
NIS2
NIS2 compliance refers to the updated Network and Information Systems Directive introduced by the European Union, which aims to strengthen cybersecurity and improve resilience against cyber threats.
Businesses in critical sectors, such as energy, healthcare, finance, and digital infrastructure, must become compliant to mitigate risks, protect sensitive data, and avoid penalties for non-compliance. Adopting NIS2 standards is crucial for maintaining operational security and continuity in an increasingly digital and interconnected environment.
Cyber Essentials
Cyber Essentials is a U.K. government framework based on the government’s “10 Steps to Cyber Security” program and administered by the NCSC (National Cyber Security Centre).
It provides five controls companies should implement to achieve a cybersecurity baseline and a framework to reassure their clients and help them win more contracts.
TISAX
TISAX (Trusted Information Security Assessment Exchange) compliance is a Germany-originated certification standard for information security explicitly tailored for the automotive industry and its suppliers.
TISAX is based on the same information security management principles as ISO 27001.
Automotive OEMs and Tier 1 suppliers increasingly mandate this standard, as it enables partners to recognize information security assessments mutually.
It ensures businesses meet stringent security requirements, protecting sensitive data and intellectual property shared between partners. Companies involved in automotive manufacturing, design, or services must become TISAX compliant to build trust with partners, secure valuable information, and maintain eligibility to work with major automakers, which is often a prerequisite for contracts in this industry.
NYDFS NYCRR 500
NYDFS NYCRR 500 compliance refers to a cybersecurity regulation established by the New York Department of Financial Services (NYDFS) that mandates financial institutions and other covered entities to implement robust cybersecurity measures.
Businesses such as banks, insurance companies, and financial services firms must comply to protect sensitive consumer data, mitigate cybersecurity risks, and avoid regulatory penalties.
CCPA
The California Consumer Privacy Act (CCPA) is a comprehensive data privacy law that grants California residents rights over their personal information, including the ability to know, delete, and opt out of the sale of their data.
Businesses that collect data on California residents and have over $25 million in gross annual revenues or process data from more than 50,000 consumers must comply with this law.
Non-compliance can result in significant fines and reputational damage. For companies handling sensitive data, especially those dealing with California residents, becoming CCPA compliant is critical to maintaining trust, avoiding legal penalties, and aligning with growing privacy regulations.
Privacy enforcement actions for CCPA violations have generally been levied against enterprises, including DoorDash, Uber, and Google.
CPRA
The California Privacy Rights Act (CPRA) enhances consumer privacy protections introduced by the CCPA, requiring businesses to be more transparent and responsible in handling personal data.
Compliance is essential to avoid penalties and safeguard brand trust. The CPRA imposes strict requirements around data collection, use, sharing, and security while giving consumers greater control over their information.
AI Frameworks
NIST AI RMF
Introduced in mid-2024, NIST AI RMF (Risk Management Framework) compliance is a public-private collaboration that provides guidelines for developing and deploying AI systems responsibly and securely. It helps businesses assess and mitigate risks associated with AI, ensuring the technology is trustworthy, transparent, and accountable.
Specific businesses, especially those in regulated industries like healthcare, finance, or defense, need to become compliant to align their AI practices with security and ethical standards. Compliance helps prevent bias, protect sensitive data, and meet legal requirements, ultimately reducing operational risks and fostering trust with customers and regulators.
ISO/IEC 42001
ISO/IEC 42001 is a global standard that outlines the requirements for creating, implementing, maintaining, and continuously enhancing an Artificial Intelligence Management System (AIMS) within organizations.
It is intended for entities that develop or use AI-based products or services, ensuring the responsible and ethical development and deployment of AI systems.
Some regard compliance costs as excessive and adherence to compliance requirements as arduous. The Competitive Enterprise Institute states, “Federal regulation’s total compliance costs and economic effects are at least $2.117 trillion annually.”
According to a study by the Cato Institute, “the average US firm spends between 1.3 and 3.3 percent of its total wage bill on regulatory compliance.”
However, cybercrime is worsening, and large-scale deregulation isn’t coming anytime soon.
Due to the number of compliances applicable to a given business, many companies are turning to vendor service and software solutions to navigate the options and facilitate the implementation.
