Compliance Regulation

Posted by admin on August 3rd, 2009 filed in Legal, Security, Society

The term ‘regulatory compliance’ refers to a set of standards, to policies and specifications that are clearly defined, in regards to how companies conduct their business affairs.  Breakdowns in companies or scandals such as the 2001 case of Enron made presidents, CEO’s and the U.S. Government more aware that the previous set of standards were not strong enough.  In 2002, the Senate and the Congress developed the Sarbanes-Oxley act.  This act provided definitions regarding the responsibilities of members in the top managerial positions in the major corporations with regards to the accurate reporting of financial transactions and of the legal necessity of accurate book keeping.  In the United States, this means that companies must comply with the regulations and the laws and that those who do not comply face civil or even criminal penalties and consequences.

Although the guidelines may be difficult to understand, small businesses can find help by going to a website set up in 2006 by the U.S. Government’s division of Small Business Administration.  This site provides access to the information and the services provided by the government that will assist in those small companies and their compliance to the regulations.  Other organizations provide information as well, such as HIPAA, FISMA and GLBA.  Issues regarding health insurance and the release of information, which applies to many medical and mental health facilities have been the main topics in recent years.  These issues are now a bit more difficult due to the electronic storage of personal information and just how secure that information is online.  Businesses involved with such delicate material involving the personal information of their clients are becoming more aware of the need for the protections of privacy and the need to ensure that information is secure.  These are just two simple ways in which each employee can be certain that they are complying with the regulatory acts and laws.

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