What does regulatory compliance involve?

Regulatory compliance primarily involves ensuring that an organization adheres to established laws, regulations, and guidelines relevant to its operations. This encompasses a wide range of standards that may include federal and state laws, industry-specific regulations, and internal policies. Organizations must understand and implement processes and controls that align with these requirements to avoid legal penalties, reputational damage, and improve overall risk management.

This aspect of compliance can involve various activities, such as auditing, reporting, and developing policies to ensure that all operational practices meet the required standards. While tracking user activities, monitoring network traffic, and implementing multi-factor authentication may be part of a broader security strategy, they do not specifically define the scope of regulatory compliance itself. Instead, they could be tools or methods that help ensure compliance with certain regulations, particularly those related to data protection and information security.