# Compliance Requirements Document

This document outlines the regulatory and compliance obligations relevant to the organization.

## Applicable Regulations and Standards

### Primary Requirements

#### SOC 2 (Service Organization Control 2)

**Type**: Industry standard / Customer requirement
**Applicability**: Expected by enterprise customers
**Scope**: Security, Availability, Confidentiality
**Status**: Not currently certified, but required for growth

**Key Requirements**:

- Logical and physical access controls
- System operations and change management
- Risk management processes
- Security incident management
- Business continuity planning

**Audit Timeline**: Target for Q4 this year

#### GDPR (General Data Protection Regulation)

**Type**: Regulation / Legal
**Applicability**: EU customer data (small percentage)
**Scope**: Personal data processing
**Status**: Partial compliance, gaps exist

**Key Requirements**:

- Lawful basis for processing
- Data subject rights (access, deletion, portability)
- Data protection by design
- Breach notification (72 hours)
- Data processing agreements

**Risk Level**: Low (limited EU exposure currently)

#### CCPA/CPRA (California Consumer Privacy Act)

**Type**: State regulation / Legal
**Applicability**: California residents and data
**Scope**: Consumer personal information
**Status**: Partial compliance

**Key Requirements**:

- Consumer rights (know, delete, opt-out)
- Privacy notice requirements
- Data minimization
- Service provider agreements
- Security safeguards

**Risk Level**: Medium - growing enforcement

#### State Data Breach Notification Laws

**Type**: State regulation / Legal
**Applicability**: All US states have requirements
**Scope**: Breach notification
**Status**: Policies not documented

**Key Requirements**:

- Reasonable security safeguards
- Breach notification timelines (varies by state, 30-90 days)
- Content requirements for notifications
- Attorney General notification (some states)

**Risk Level**: Medium - notification requirements

### Secondary Requirements

#### PCI DSS (Payment Card Industry)

**Type**: Industry standard / Contractual
**Applicability**: Not applicable - no card storage
**Status**: Out of scope

#### HIPAA (Health Insurance Portability and Accountability Act)

**Type**: Regulation / Legal
**Applicability**: No healthcare data
**Status**: Out of scope

#### ISO 27001

**Type**: International standard
**Applicability**: Some customers require it
**Status**: Not certified, low priority

### Customer Contractual Requirements

**Common Requirements**:

- Security questionnaire completion
- Penetration test results (annual)
- SOC 2 report (or equivalent)
- Incident notification (within 72 hours)
- Data processing agreement compliance
- Right to audit provisions

**Current Gaps**:

- No SOC 2 report
- No penetration test in 18 months
- Limited incident response documentation
- Incomplete security questionnaires

### Cyber Insurance Requirements

**Policy Renewal Requirements**:

- MFA implementation required
- Annual penetration testing
- Employee security training
- Documented incident response plan
- Backup testing procedures
- Access review processes

**Current Status**: Several requirements unmet

## Compliance Gap Analysis

### Critical Gaps (Must Address)

| Gap                   | Requirement       | Regulation/Standard    | Priority |
| --------------------- | ----------------- | ---------------------- | -------- |
| No MFA enforcement    | Access control    | SOC 2, Insurance       | Critical |
| No security training  | Awareness program | SOC 2, Insurance       | Critical |
| No documented IR plan | Incident response | SOC 2, Insurance, GDPR | Critical |
| No access reviews     | Access management | SOC 2, Insurance       | Critical |

### Major Gaps (Should Address)

| Gap                         | Requirement      | Regulation/Standard  | Priority |
| --------------------------- | ---------------- | -------------------- | -------- |
| Limited logging             | Monitoring       | SOC 2                | High     |
| No vulnerability management | Risk management  | SOC 2, Insurance     | High     |
| Outdated penetration test   | Security testing | Insurance, Customers | High     |
| Incomplete data inventory   | Data governance  | GDPR, CCPA           | Medium   |

### Minor Gaps (Consider Addressing)

| Gap                        | Requirement      | Regulation/Standard | Priority |
| -------------------------- | ---------------- | ------------------- | -------- |
| No security policies       | Documentation    | SOC 2               | Medium   |
| Limited vendor assessments | Third-party risk | SOC 2               | Low      |
| No security metrics        | Measurement      | SOC 2               | Low      |

## Compliance Timeline

### Immediate (0-30 days)

- MFA implementation planning
- Basic security policy documentation
- Incident response outline

### Short-term (30-90 days)

- MFA rollout complete
- Security awareness training launch
- Access review process established
- Vulnerability management program

### Medium-term (90-180 days)

- Penetration testing
- Logging enhancement
- SOC 2 preparation begins

### Longer-term (180+ days)

- SOC 2 audit
- ISO 27001 assessment
- Advanced security tooling

## Documentation Requirements

### Required Documentation

- [ ] Security policies (acceptable use, data handling, access control)
- [ ] Incident response procedures
- [ ] Business continuity plan
- [ ] Risk assessment documentation
- [ ] Vendor security assessments
- [ ] Access review logs
- [ ] Training completion records
- [ ] Penetration test reports
- [ ] Audit trails and logs

### Documentation Standards

- Annual review cycle
- Version control for all documents
- Accessibility to relevant team members
- Retention per regulatory requirements (typically 3-7 years)

## Audit and Assessment Schedule

| Assessment               | Frequency   | Next Due | Lead     |
| ------------------------ | ----------- | -------- | -------- |
| Risk assessment          | Annual      | Q2       | Alex     |
| Penetration test         | Annual      | Q3       | External |
| Access review            | Quarterly   | Q1       | Morgan   |
| Policy review            | Annual      | Q2       | Morgan   |
| Incident response drill  | Semi-annual | Q2       | Alex     |
| Business continuity test | Annual      | Q4       | Alex     |

## Compliance Cost Considerations

### Budget Allocation

- External penetration test: $15,000-25,000
- SOC 2 audit preparation: $10,000-20,000
- SOC 2 audit: $20,000-40,000
- Security tooling: $5,000-15,000/year
- Training platforms: $2,000-5,000/year

### Cost of Non-Compliance

- Customer loss due to failed security review: High
- Insurance premium impact: Medium-High
- Regulatory fines (CCPA): $2,500-$7,500 per violation
- Breach costs (average): $165/record
- Reputation damage: Hard to quantify
