The proliferation and inclination of custom software development services frequently results in cybersecurity issues such as malicious attacks, data breaches, and cyber theft. Worldwide, breaches of over six million data records occurred in just the first quarter of 2023. Thus, software development security and compliance become essential, if not urgent. While the former makes sure security measures are put in place to stop malicious attacks and data breaches at every stage of custom software development, the latter makes sure software development complies with a set of international IT security standards and regulations to give custom software development a more robust defense against all types of attacks.
The specifics of software development compliance requirements are covered in detail in this blog.
Understanding Compliance Requirements
As was previously mentioned, compliance is now a requirement for software developers and organizations because of the increase in data breaches and cyberattacks. Furthermore, there are penalties or sanctions for breaking these industry and regulatory compliance regulations. For this reason, every team working on custom software development and implementation must be aware of compliance fundamentals. Here are some typical requirements for software developers to comply with regulations.
GDPR
The General Data Protection Regulation (GDPR) is a legal requirement and IT security standard for all software developers working with European citizens' data. The legislation uses a series of security-related rules to safeguard the information and privacy of European citizens. One requires all software developers or organizations to obtain individuals' consent before utilizing or erasing their data. One of the strictest laws pertaining to IT compliance, this regulation carries hefty penalties for violators.
ISO 27001
The International Electromechanical Commission (IEC) and the International Standardisation Organisation (ISO) collaborated to create ISO 27001, a set of guidelines for managing information security across all international organizations. The compliance requirements include:
- Establishing an Information Security Management System (ISMS) and outlining the specifications for building
- Implementing, overseeing
- Optimizing the system to prevent data breaches and privacy leaks
ISO 22301
The ISO released ISO 22301 to guarantee business continuity even in the event of a massive cyberattack on its IT infrastructure and data. It includes all legal requirements to organize, design, implement, oversee, evaluate, and consistently optimize a business management system. The aim is to ensure that the management system is strong enough to defend the company from data breaches, respond to such an attack, lessen the likelihood that it will happen again, and assist the company in recovering from it.
PCI DSS
The legal framework that protects cardholder data (credit, debit, and other cards) is called the Payment Card Industry & Data Security Standard (PCI DSS). To earn the trust of investors and customers, any business that acquires, retains, and uses customer financial data through online transactions must abide by this regulation. During the custom software development and implementation phases, online payment software developers must also adhere to compliance standards.
HIPAA
The healthcare sector is subject to the Health Insurance Portability and Accountability Act (HIPAA), and third-party healthcare providers who manage or have access to their clients' medical records are required to maintain compliance. The regulation safeguards patient or client medical records and histories within the healthcare industry. Healthcare professionals are advised to use the HITECH Act under HIPAA to electronically handle and store patient records while implementing secure systems, as technology is now a part of everything we do.
SOX
The primary goal of the Sarbanes-Oxley Act of 2002 is to safeguard shareholders against financial fraud and misappropriations in the corporate financial sector and the stock market, whereas the majority of compliance laws aim to protect customer and organizational data. Businesses going public for the first time through an offer are also subject to the Sarbanes Oxley Act, which requires them to provide the public with accurate and thorough information about their shares. The rule applies only to publicly traded American companies, regardless of whether their owners are foreign nationals or US citizens. It is only sometimes applicable. To comply with SOX, your organization's IT department must first uphold compliance with the rules about the storage of financial records.
NIST
Founded in 1901, the National Institute of Standards and Technology (NIST) provides businesses with guidance on data security best practices and preventive measures to mitigate the numerous challenges that come with managing data. By doing this, the regulatory body assists you in averting cyberattacks, data breaches, and reputational harm through its compliance standards. Additionally, only American and foreign businesses conducting business in the nation are eligible to use NIST.
Also Read: Compliance in Software Development - Worth the Investment?
Industry-specific Compliance requirements
Compliance In FinTech
Technology and finance integration could provide some openings for hackers to exploit and destroy data. For this reason, FinTech companies must set up strict security protocols to safeguard financial data.
FinTech compliance stands out among the methods for guaranteeing strict protection in this crucial area of finance. It entails abiding by the compliance guidelines that regulate consumer security in a business process, data privacy, and technology used in the finance sector.
FinTech companies need to implement these compliance standards into their daily business operations to reduce the likelihood of cyberattacks and data breaches. The General Data Protection Regulation (GDPR) and PCI DSS are appropriate at the fundamental level for FinTech regulatory compliance.
Compliance In HealthCare
The healthcare sector is subject to stringent federal and state laws, standards, codes of conduct, and regulations that must be strictly adhered to. The objective is to reduce the possibility of patient data loss due to privacy invasions and data breaches, uphold industry standards for quality, and comply with the law.
Custom software development for healthcare apps, developers often have to follow specific regulations, such as the General Data Protection Regulation (GDPR), Health Insurance Technology (HITECH), and the Health Insurance Portability and Accountability Act (HIPAA).
To comply with these regulations, they must implement robust security measures during development, such as high-end encryptions, two-factor authentication, and high-level authentication.
These security measures protect software from malicious attacks and prevent unauthorized parties from intercepting or breaching data transmission. Similarly, the apps should be able to recognize possible data breaches through questionable behavior and alert the backend staff so that prompt action can be taken.
Compliance In HRM
Human Resource Management (HRM) practices ensure compliance with applicable laws and regulations from federal, state, and international labor regulatory bodies. To comply with these labor laws, the organization establishes standard operating procedures for all its employees.
Compliance In LMS
Nowadays, many businesses and educational establishments use Learning Management System (LMS) software to organize, carry out, and evaluate particular learning procedures. The applications help teachers create and deliver lectures more effectively, make learning easier for students, support everyone, and promote organizational growth.
LMS software programs play a critical role in developing and retaining current employees and onboarding and training new hires.
The following two guidelines should be taken into consideration and followed by developers when creating these inventive applications:
- Sharable Content Object Reference Model (SCORM): To provide users and learners with a smooth experience interacting with the host software, all standards and specifications for e-learning websites and apps must be followed and packaged into a transferable ZIP file format.
- Experience API (xAPI): Among other streamlined benefits, the LMS or e-learning software should ensure that various learning experiences, including non-browser activities like playing games, are tracked and recorded. It should also allow users to switch between desktop and mobile platforms while learning.
Compliance In Collaboration Software
Collaboration software makes it easier for independent contractors, clients, employers, staff, and two businesses to communicate and collaborate seamlessly, promoting growth and enormous returns on investments.
However, collaboration does imply the sharing of data and information, so software developers must adhere to collaboration regulations to safeguard the data that is shared back and forth between the two parties.
Therefore, when creating collaboration software, specific internationally and regionally recognized regulations should be taken into account. Among them are the following:
- GDPR
- HIPAA
- SOX
- ISO 27001 and 22301
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Conclusion
Throughout the custom software development life cycle, regulatory compliance is essential to reducing the risk of malicious cyberattacks, penalties, damage to one's reputation, and post-deployment lawsuits. Software developers should adhere to the best international regulations, such as GDPR, ISO 27001, PCI DSS, HIPAA, SOX, and ISO 22301. When implementing any software in your company, as a business owner, you should put regulatory compliance first. One of the best ways to achieve this is to collaborate with software development firms that are ISO-compliant or possess some regulatory certifications covered in this blog.
