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This post will focus on Information Compliance, the fourth and final part of the four-part series this week.I have received a few queries on my choice of sequence for this series: Availability, Security, Retention andCompliance.
Why not have them in alphabetical order? IBM avoids alphabetizing in one language, because thenit may not be alphabetized when translated to other languages.
Why not have them in a sequence that spells outan easy to remember mnemonic, like "CARS"? Again, when translated to other languages, those mnemonics no longerwork.
Instead, I worked with our marketing team for a more appropriate sequence, based on psychology and the cognitive bias of [primacy and recency effects].
Here's another short 2-minute video, on Information Compliance
Full disclosure: I am not a lawyer. The following will delveinto areas related to government and industry regulations. Consultyour risk officer or legal counsel to make sure any IT solution is appropriatefor your country, your industry, or your specific situation.
IBM estimates there are over 20,000 regulations worldwide related to information storage and transmission.
For information availability, some industry regulations mandate a secondary copy a minimum distance away toprotect against regional disasters like hurricanes or tsunamis.IBM offers Metro Mirror (up to 300km) and Global Mirror (unlimited distance) disk mirroring to support theserequirements.
For information security, some regulations relate to privacy and prevention of unauthorized access. Twoprominent ones in the United States are:
Health Insurance Portability and Accountability Act (HIPAA) of 1996
HIPAA regulates health care providers, health plans, and health care clearinghouses in how they handle the privacy of patient's medical records. These regulations apply whether the information is on film, paper, or storedelectronically. Obviously, electronic medical records are easier to keep private. Here is an excerpt froman article from [WebMD]:
"There are very good ways to protect data electronically. Although it sounds scary, it makes data more protected than current paper records. For example, think about someone looking at your medical chart in the hospital. It has a record of all that is happening -- lab results, doctor consultations, nursing notes, orders, prescriptions, etc. Anybody who opens it for whatever reason can see all of this information. But if the chart is an electronic record, it's easy to limit access to any of that. So a physical therapist writing physical therapy notes can only see information related to physical therapy. There is an opportunity with electronic records to limit information to those who really need to see it. It could in many ways allow more privacy than current paper records."
GLBA regulates the handling of sensitive customer information by banks, securities firms, insurance companies, and other financial service providers. Financial companies use tape encryption to comply with GLBA when sending tapes from one firm to another. IBM was the first to deliver tape drive encryption withthe TS1120, and then later with LTO-4 and TS1130 tape drives.
For information retention, there are a lot of regulations that deal with how information is stored, in some casesimmutable to protect against unethical tampering, and when it can be discarded. Two prominent regulations inthe United States are:
U.S. Securities and Exchange Commission (SEC) 17a-4 of 1997
In the past, the IT industryused the acronym "WORM" which stands for the "Write Once, Read Many" nature of certain media, like CDs, DVDs,optical and tape cartridges. Unfortunately, WORM does not apply to disk-based solutions, so IBM adopted the languagefrom SEC 17a-4 that calls for storage that is "Non-Erasable, Non-Rewriteable" or NENR. This new umbrella term applies to disk-based solutions, as well as tape and optical WORM media.
SEC 17a-4 indicates that broker/dealers and exchange members must preserve all electronic communications relating to the business of their firmm a specific period of time. During this time, the information must not be erased or re-written.
Sarbanes-Oxley (SOX) Act of 2002
SOX was born in the wake of [Enron and other corporate scandals]. It protects the way that financial information is stored, maintained and presented to investors, as well as disciplines those who break its rules. It applies onlyto public companies, i.e. those that offer their securities (stock shares, bonds, liabilities) to be sold to the publicthrough a listing on a U.S. exchange, such as NASDAQ or NYSE.
SOX focuses on preventing CEOs and other executives from tampering the financial records.To meet compliance, companies are turning to the [IBM System Storage DR550] which providesNon-erasable, Non-rewriteable (NENR) storage for financial records. Unlike competitive products like EMC Centera thatfunction mostly as space-heaters on the data center floor once they filled up, the DR550 can be configured as a blended disk-and-tape storage system, so that the most recent, and most likely to be accessed data, remains on disk, but the older, least likely to be accessed data, is moved automatically to less expensive, more environment-friendly "green" tape media.
Did SOX hurt the United States' competitiveness? Critics feared that these new regulations would discourage newcompanies from going public. Earnst & Young found these fears did not come true, and published a study [U.S. Record IPO Activity from 2006 Continues in 2007]. In fact, the improved confidence that SOX has given investors has given rise to similarlegislation in other parts of the world: Euro-Sox for the European Union Investor Protection Act, and J-SOX Financial Instruments and Exchange Law for Japan.
For those who only read the first and last paragraphs of each post, here is my recap:Information Compliance is ensuring that information is protected against regional disasters, unauthorizedaccess, and unethical tampering, as required to meet industry and government regulations. Such regulationsoften apply if the information is stored on traditional paper or film media, but can often be handled more cost-effectively when stored electronically. Appropriate IT governance can help maintain investor confidence.