What It Is

Basel III is the international regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-global financial crisis. It comprises prudential standards for banks to enhance capital quality and quantity, constrain leverage, and build liquidity resilience. The core approach integrates risk-weighted assets (RWA) with non-risk-based metrics in a "belts and suspenders" design.

Key Components

• **Pillar 1CET1 ≥4.5%, Tier 1 ≥6%, Total capital ≥8% of RWA; 3% leverage ratio; 100% LCR/NSFR.
• **Buffers2.5% capital conservation buffer (CCB), countercyclical buffer (CCyB), G-SIB/D-SIB surcharges.
• **Pillar 2Supervisory review via ICAAP and stress testing.
• **Pillar 3Standardized disclosures for RWA comparability and leverage exposures. Compliance enforced by national supervisors; no formal certification.

Why Organizations Use It

Banks implement for mandatory regulatory compliance across jurisdictions, crisis-proven resilience, and systemic risk mitigation. Benefits include lower funding costs, investor trust, and optimized asset allocation amid capital/liquidity constraints. Addresses GFC shortcomings in solvency-liquidity linkage.

Implementation Overview

Multi-phased enterprise program: gap analysis, data architecture upgrades, model constraints (output floor), governance setup. Targets internationally active/large banks globally via domestic laws (e.g., EU 2025 timelines). Involves ongoing Pillar 3 reporting, RCAP assessments, no third-party audits.

What It Is

ISO/IEC 27701 is the international standard titled Privacy information management — Extension to ISO/IEC 27001 and ISO/IEC 27002. It is a certifiable framework extending the ISO 27001 information security management system (ISMS) with a Privacy Information Management System (PIMS). Its primary purpose is to help organizations manage privacy risks for personally identifiable information (PII), specifying requirements for controllers and processors using a risk-based, PDCA (Plan-Do-Check-Act) approach.

Key Components

• Clauses 4-10 extend ISO 27001 for privacy context, leadership, planning, support, operation, evaluation, and improvement.
• Annex A (37 controls for PII controllers) and Annex B (24 for processors) cover consent, transparency, data subject rights, transfers, and processor agreements.
• Built on ISO 27000-family; includes mappings to GDPR (Annex D), ISO 29100 (Annex C).
• Certification via accredited bodies, typically as add-on to ISO 27001, with 3-year validity and annual surveillance.

Why Organizations Use It

Drives GDPR/other law alignment, reduces privacy risks, enables procurement differentiation, builds supply-chain trust, and provides audit-ready evidence of accountability.

Implementation Overview

• Gap analysis on existing ISMS, PII inventory, risk assessment, control implementation (Annex A/B), internal audits.
• Applies to all PII-processing organizations (controllers/processors); 6-12 months typical with ISO 27001 base.