Regulatory compliance is important to a company because it will ensure adherence to various state and federal laws, standards, procedures, and industry-specific requirements relevant to their success. Failure to comply to regulatory compliance will subject the company to legal punishments and federal fines. Strict rules and regulations will allow a company to remain a reputable business. When it comes to storing and transmitting classified data, protection of all intellectual property needs to be of utmost importance. There are various types of regulatory compliance laws, but the three main players are HIPAA, SOX, and PCI.
HIPAA stands for the Health Insurance Portability & Accountability Act of 1996, concerns organizations who handle protected health information (PHI) or personal health records (PHR). The most common types of covered entities include health insurance providers and most healthcare providers such as doctors, clinics, hospitals, nursing homes, psychologists, dentists, and pharmacies. The limitations, laid heavily by the US Department of Health and Human Services, deal with the handling and disclosure of PHI without patient authorization. This also allows patients to gain access of their own personal medical records without any lash out. IT providers who partner with health industries need to know they can directly impact these regulations with the services they provide. Being well versed in the privacy and security of these rules will help keep all aspects of the business running. Companies that handle health care information need to combat breaches with HIPAA security rules that safeguard their electronic PHI.
The Sarbanes-Oxley (SOX) Act of 2002 is a US federal law passed in response to a number of major corporate and accounting scandals. Some of the big companies involved were Enron (2001), Tyco International (2002), American Insurance Group (2005), and WorldCom (2002). As a result from these shocking scandals the nation lost trust in accounting and reporting practices. These new standards for corporate governance, auditing, and financial reporting will protect investors of US based public organizations. Allowing Cognoscape to properly maintain and uphold your compliance will ensure network security and leave you worry free in case of an audit.
The payment card industry (PCI) is comprised of credit card companies such as Visa, MasterCard, American Express, Discover, and the Japanese Credit Bureau. These companies assembled to create a set of data security standards (PCI DSS) with the goal of reducing payment card fraud and theft. PCI compliance should be a largely discussed topic if your business handles credit card payments and financial transactions. Failure to protect your clients and your business from breaches will result in damaged reputation and loss of your customers’ trust. Save yourself the heartache, fines, and reputational damage and follow the standards set by PCI DSS. IT companies who service all business with credit card functions should provide the tools and measurements needed to protect against cardholder data exposure and compromise across the entire payment industry.
Cognoscape has developed the ultimate roadmap to guide you through regulatory compliance. Read the full eBook here for more detailed information.