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Photo: Noël Zia Lee
Compliance is not a new buzzword, in fact in other industries compliance has been around a long time. During the RSA conference, every vendor had the word compliance on their cardboard bulletin board, an adult version of a diorama. [1]
What are the different types of compliance?
In computer security, compliance began with the government. This is where all good ideas come from (sarcasm). Over time compliance regulations evolved into something that was “needed” by the industry to make sure that corporations took steps to protect their user’s data. It is sad that corporations need an intervening body to tell them that they should secure their data. However, this is why HIPPA and SOX came about. Why should a hospital spend money to protect patient’s records? That is crazy talk!
I have been in the security community for a long time and I hate to tell you but companies will never care about security. They will do the minimum thing required in order to satisfy the masses. In the U.S. the only thing that matters is the bottom line. Companies pay for Cost-Benefit analysis on things to determine what the corporate strategy should be. Corporations don’t do this because they care about the result, they do it to save money, thus being profitable for their shareholders.
If the only thing that matters is the bottom line, you need independent regulatory agencies to mandate certain rules for the greater good.
As long as consumers believe that the products they buy are safe, they will continue to buy them.
Let’s take the protection on a container of Tylenol. In 1982, a bunch of people were poisoned in Chicago because someone decided to put potassium cyanide in random bottles of Tylenol. What was the result of this? The market share of Tylenol dropped from 35% to 8%. It took an entire year for Johnson & Johnson to grab the market share again. They did this by creating a triple-sealed package and dropped their cost to be more competitive. After this Johnson & Johnson grabbed more market share than they had before!
In this example, the consumer stopped trusting that Tylenol was safe and subsequently stopped buying Tylenol. They didn’t stop buying medicine just Tylenol. The attacker could of poisoned other bottles too, but that didn’t matter. What the customer cared about was the safety of a product. When the consumer felt good about Tylenol again, they begin buying the product again.
The purpose of compliance is to make the consumer feel safe. The government needed to step in and mandate in order to have the people feel protected.
Does compliance work?
It depends on who you ask. Mike Bailey doesn’t think so. However, others do. For instance, Companies that make profit from compliance defiantly think it works.
Why is compliance so often talked about?
Companies that do cost-benefit analysis like the ones above need to be compliant. They will comply the cheapest way they can, thus keeping their operating costs low. Companies will continue to offer cheaper and cheaper compliance products. Just remember, they get what they pay for.
