What is the difference between statutory and regulatory requirements?
In the United States, statutory requirements are legal obligations established by acts of legislation (laws) passed by Congress or state legislatures. Statutory requirements represent the foundational legal mandates organizations must follow. For example, the Health Insurance Portability and Accountability Act (HIPAA) is a statute that sets rules for protecting patient health information.
Regulatory requirements are detailed rules and standards developed by Federal and/or state government agencies authorized by statute to implement and enforce the law. Regulations provide the technical, operational, or administrative specifics necessary to comply with statutes. For example, the Department of Health and Human Services’ HIPAA Privacy Rule is a regulatory implementation of the HIPAA statute.
Key distinctions between statutory and regulatory compliance include:
- Source: Statutes come from legislatures, while regulations are created by agencies under statutory authority.
- Level of detail: Statutes are often broad and principle-based, while regulations are more detailed and prescriptive.
- Flexibility: Statutes change through legislative processes, while regulations can be updated more frequently through agency rulemaking.
In cybersecurity compliance, understanding the difference is important because organizations often comply with regulations that operationalize statutes and failure to meet regulatory requirements can lead to legal consequences under the underlying statute.