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What is Marketplace Compliance?

Written by Connections for Business | Jun 26, 2024 2:49:00 PM

When we're talking about compliance and what's needed for compliance,  it's kind of funny. Most of the conversations that we have  are what I'm going to call marketplace compliance. And here's what I mean by that. If you think about HIPAA, that's not marketplace compliance. That's government-mandated compliance for people in the healthcare industry.

If you look at the financial services sector, they're going to be, they're not marketplace compliance. They're regulated compliance by the SEC or FINRA. But when you are a law firm, a 20, 30 person law firm, and you're working for a bank  and the bank says, okay, for you to do this work for us, we want you to go ahead and go through the cyber questionnaire that looks very similar to what you may get from an insurance company who's doing a cyber liability questionnaire.

And they'll be asking you things like, you know, how are you doing your backups? What are your rotations for passwords and all these different technical things that fit the cyber security world. That's marketplace compliance because the bank is saying, "Hey, attorney law firm, we'd love to give you the business, but you have to meet certain standards before we'll give you that business."

So it's not government regulation. It's not even industry regulation. This is marketplace regulation.