Information Technology (IT) compliance is the process of meeting a third party’s requirements with the aim of enabling business operations in a particular market or aligning with laws or even with a particular customer.

Compliance sometimes overlaps with security—but the motive behind compliance is different. It is centered around the requirements of a third party, such as:

• Industry regulations
• Government policies
• Security frameworks
• Client/customer contractual terms

Let’s say that IT security is a carrot. it motivates the company to protect itself because it is good for the company. IT Compliance, then, is the stick—failure to effectively follow compliance regulation can have serious effects on your business.

Often, these external rules ensure that a given organization can deal with complex needs. Sometimes, compliance requires an organization to go beyond what might be considered reasonably necessary. These objectives are critical to success because a lack of compliance will result in:

• At minimum, a loss of customer trust and damage to your reputation.
• At worst, legal and financial ramifications that could result in your organization paying hefty fees or being blocked from working in a certain geography or market.

Areas where compliance is a key business concern:

• Countries with data/privacy laws like GDPR, the California Consumer Privacy Act, and more
• Markets with heavy regulations, such as healthcare or finance
• Clients with high confidentiality standards

These areas almost always demand a high level of compliance. Importantly, IT compliance can apply in domains other than IT security. Complying with contract terms, for example, might be about how available or reliable your services are, not only if they’re secure.