Regulatory and Compliance Risk
All organizations are subject to a range of information-related national and international legislation and regulatory requirements. These range from broad corporate governance guidelines to the detailed requirements of specific regulations. UK organizations are subject to some, or all, of:
* Combined Code and Turnbull Guidance (UK)
* EU data protection, privacy regimes
* Sectoral regulation: FSA (1) , MiFID (2) , AML (3)
* Human Rights Act, Regulatation of Investigatory Powers Act
* Computer misuse regulation
Those organizations with US operations may also be subject to US regulations such as Sarbanes Oxley and SEC regulations, as well as sectoral regulation such as GLBA (4), HIPAA (5) and USA PATRIOT Act. Most organizations are possibly also subject to US state laws that appear to have wider applicability, including SB 1386 (California Information Practice Act) and OPPA (6) . Compliance depends as much on information security as on IT processes and services.
Many of these regulations have emerged only recently and most have not yet been adequately tested in the courts. There has been no co-ordinated national or international effort to ensure that many of these regulations – particularly those around personal privacy and data protection – are effectively co-ordinated. As a result, there are overlaps and conflicts between many of these regulations and, while this is of little importance to organizations trading exclusively within one jurisdiction, the reality is that many enterprises today are trading on an international basis, particularly if they have a website or are connected to the Internet.
A management system is a formal, organized approach used by an organization to manage one or more components of their business, including quality, the environment and occupational health and safety, information security and IT service management. Most organizations – particularly younger, less mature ones, have some form of management system in place, even if they’re not aware of it. More developed organizations use formal management systems which they have certified by a third party for conformance to a management system standard. Organizations that use formal management systems today include corporations, medium- and small-sized businesses, government agencies, and non-governmental organizations (NGOs).
Standards and Certifications
Formal standards provide a specification against which aspects of an organization’s management sytsem can be independently audited by an accredited certification body and, if the management system is found to conform to the specification, the organization can be issued with a formal certificate confirming this. Organizations that are certificated to ISO 9000 will already be familiar with the certification process.
Integrated Management Systems
Organizations can choose to certify their management systems to more than one standard. This enables them to integrate the processes that are common – management review, corrective and preventative action, control of documents and records, and internal quality audits – to each of the standards in which they are interested. There is already an alignment of clauses in ISO 9000, ISO 14001 (the environmental management system standard) and OHSAS 18001 (the health and safety management standard) that supports this integration, and which enables organizations to benefit from lower cost initial audits, fewer surveillance visits and which, most importantly, allows organizations to ‘join up’ their management systems.
The emergence of these international standards now enables organizations to develop an integrated IT management system that is capable of multiple certification and of external, third party audit, while drawing simultaneously on the deeper best-practice contained in ITIL®. This is a huge step forward for the ITIL world.
- (1) Financial Services Authority
(2) Markets in Financial Instruments Directive
(3) Anti-money laundering regulations
(4) Gramm-Leach-Bliley Act
(5) Health Insurance Portability and Accountability Act
(6) Online Personal Privacy Act
About the Author
Alan Calder is an international authority on IT Governance and information security management. He led the world’s first successful implementation of BS 7799, the information security management standard upon which ISO 27001 is based, and wrote the definitive compliance guide for this standard, IT Governance: A Manager’s Guide to Data Security and BS7799/ISO17799. The 3rd edition of this book is the basis for the UK Open University’s postgraduate course on Information Security. He has just written, for BSI, a management guide on integrating ISO 27001 and ISO 20000 Management Systems, drawing heavily on ITIL best practice. He is a consultant to companies around the world, including Cisco.