IT compliance means that a company's software complies with all legal requirements, standards, and regulations. To maintain the security and appropriate use of software in business, these requirements must be met by adhering to all industry regulations, government policies, security frameworks, and customer terms of agreement.
IT compliance is critical not only for preserving the privacy and security of your customers, clients, employees, and your company, but also for increasing customer trust. When companies adhere to high standards of digital security and privacy, their reputation improves, and customers feel more comfortable when using their services.
Meeting compliance standards also guarantees that your company complies with legal requirements, reducing the risk of legal penalties, fines, and the loss of business prospects in places where compliance regulations are strict.
3 Common IT Compliance Standards to Consider
In this digital transformation era, companies should implement IT compliance as their digital innovation strategy to ensure their success. Here are 3 common IT compliance standards to consider for your companies:
1. GDPR
The European Union (EU) enforces a set of IT regulations called the General Data Protection Regulation (GDPR). This protects European individuals' digital information, and any company that gathers and handles data about EU citizens must adhere to these guidelines. If they want to do business and engage with the private financial information of EU people, even companies outside the EU must comply with GDPR compliance rules. Inquiring permission from individual users to collect data is an example of a GDPR regulation. When users open a web page, they have the option of agreeing or declining. If the user declines, the company is required to erase any data it has gathered. This rule ensures that consumers are informed when companies acquire their data and that they have the choice to decline if they choose to keep their data private.
2. PCI DSS
The Payment Card Industry Data Security Standard (PCI DSS) regulates the security of financial card information, such as customer debit and credit cards. Any company that performs online transactions that require storing, transmitting and managing a user's financial information must comply with the PCI DSS. When companies follow the PCI DSS, they encourage transparency and develop trust with customers who use their web services to conduct transactions. When customers know that a company fulfils PCI standards, they feel more secure when utilizing online services.
SOX
The Sarbanes-Oxley Act is another financial compliance regulation (SOX). This standard requires thorough and transparent disclosure of a company's financial information. This criteria must be met by every publicly traded company launching an initial public offering. The SOX standard ensures that companies disclose complete and accurate financial data so that stakeholders may make educated decisions about whether or not to invest in the company. The SOX regulation protects stakeholders while also reducing the risk of accounting errors and deterring fraud. It can also assist companies enhance their earnings reporting and streamline their procedures.
Companies in this digital transformation era must keep up with this rapid evolution or face the risks. IT Compliance is critical for business and their consumers' protection. Following compliance requirements helps companies to guarantee that a company's business processes are secure, and that sensitive data (such as customer information) is not accessed by unauthorized parties.
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Reference:
Asatryan, D. (2021, April 27). IT Compliance: A Beginner’s Guide. SpinOne. https://spinbackup.com/blog/it-compliance-explained/
Indeed Career Guide. (2022, February 21). IT Compliance: A Guide to Understanding the Basics. https://www.indeed.com/career-advice/career-development/it-compliance
