Chapter 11 Review Question

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Compliance: Chapter ReviewCompliance is the act of conducting affairs in a manner that does not undermine the set rules and protocols. Organizations usually have standard protocols for the smooth running of the company. Organizations are also subject to external regulations such as law enforcement and government policies. Compliance involves following both internal and external controls. Compliance also means that a company can be held accountable not only supports the rules but also reducing the capacity to harm (181). Advancements in technology make it easier for criminals to steal confidential information such as employee’s data, financial information, and patient records. Information needs to be well secured through the installation of security systems and compliance. Regulatory authorities prevent such activities through compliance regulations (183). Compliance ensures that organizations follow the set protocols so that employees, operating systems, and security management all work together to prevent the theft of private data.
Failure of security to safeguard data can have dire consequences for the organization and individuals. Non-compliance can result in criminal or civil liability. Financial institutions are mandated under the Gramm-Leach-Bliley Act of 1999 to develop internal privacy protocols that regulate how consumer information is handled. A bank will be committing non-compliance if consumer information reaches a third party without the consumer’s knowledge.

The act would amount to civil liability (182). The Health Insurance Portability and Accountability Act provides health and insurance institutions with guidelines to ensure that patient information is secure. Through the Act, institutions are expected to follow administrative, physical, and technical instructions (184). Patient information can get to unauthorized personnel through a physical breach in security (189). If investigations show that the institution was non-compliant to HIPAA, then the organization is liable to face charges through the sentencing commission.