There are many different information security regulations that are important for companies to know about. However, a given company should know and understand which of these major regulations apply to them and how to ensure that they correctly comply with them. There are sometimes severe consequences for not following major information security regulations ranging from a heavy fine to more severe penalties. Since certain companies can have several regulatory measures apply to them at once, companies should know how to properly address them in order to avoid overspending on these compliance efforts and potentially having duplicate efforts to meet these requirements.
The first of these important regulatory measures is HIPPA (Health Insurance Portability and Accountability act) which basically was enacted to protect important healthcare information and privacy of specific patients. This Affects medical and insurance companies the most.
The Sarbanes Oxley Act is another very important act. This act protects individual investors and is as well as preventative measure to prevent accounting fraud occurring at certain companies but enforcing that financial records to kept for seven years.
The Federal Information Security Management Act basically outlines that all federal Agencies and bodies that are a part of the government must have a very secure way of ensuring that highly classified and important information cannot be accessed by any outside entity or individual. This requires that all federal agencies maintain very secure information systems as the welfare of the country and the state of out national security depends on it.
Next, the Gramm-Leach-Bliley Act was enacted to protect the individual financial information that is maintained by Financial companies and institutions. The companies that are most affected by this law are financial institutions. banks, or any company that deals with customer’s money or financial information.
Most companies have to follow these and other major regulations and information security laws since now only do the companies’ well being depends on their compliance with theses laws, but also the customers who entrust these companies with their private and important information need the confirmation that their information is secure. The loss of private client information can lead to lawsuits against theses companies and severe consequences for the clients.