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What is IT Compliance?

IT compliance means following laws, regulations, and security standards to protect sensitive information.

These rules help businesses prevent data breaches, cyberattacks, and misuse of personal data.

Think of IT compliance like traffic laws for the internet—just as speed limits and stop signs keep drivers safe, compliance

rules help keep digital information secure.

Why is IT Compliance Important?

Common IT Compliance Laws & Standards

Different industries follow different rules. Below are some of the most important IT compliance regulations:

Regulation/Standard
What It Covers
Who Must Follow It?
Penalties for Non-Compliance
HIPAA (Health Insurance Portability and Accountability Act)


Protects

patient health records from unauthorized access.


Healthcare

providers, insurance companies, and anyone handling medical data.

Fines up to $1.5M per violation and possible criminal charges.

GDPR (General Data Protection Regulation)

Protects personal data of European Union (EU) residents.


Any

company worldwide that collects or processes EU customer data.

Fines up to €20M or 4% of annual revenue.

CCPA (California Consumer Privacy Act)

Gives California residents control over their personal data.


Businesses

that collect data from California residents.


Fines up

to $7,500 per violation.

SOX (Sarbanes-Oxley Act)

Requires public companies to maintain accurate financial records.


Publicly

traded companies.


Criminal

penalties, including jail time for executives.

PCI-DSS (Payment Card Industry Data Security Standard)

Ensures secure handling of credit card transactions.


Businesses

that process, store, or transmit credit card information.


Fines up

to $500,000 per breach and

loss of ability to accept credit cards.

NIST (National Institute of Standards and Technology)


Provides

cybersecurity best practices and frameworks.


Government

agencies and companies working with them.


Not

legally required but strongly recommended.

ISO 27001

International

standard for managing information security.

Any

company handling sensitive data that wants to prove its security standards.


No legal penalties, but failing to follow security best practices can lead to breaches.