FISMA
U.S. law for risk-based federal cybersecurity management
J-SOX
Japanese regulation for internal controls over financial reporting
Quick Verdict
FISMA mandates cybersecurity for US federal systems via NIST RMF, while J-SOX requires Japanese listed firms to assess financial reporting controls annually. Agencies ensure resilience; companies build investor trust and avoid penalties through rigorous governance.
FISMA
Federal Information Security Modernization Act of 2014
Key Features
- Mandates NIST Risk Management Framework (RMF)
- Requires continuous monitoring and diagnostics
- Enforces FIPS 199 system impact categorization
- Demands annual IG independent assessments
- Extends requirements to federal contractors
J-SOX
Financial Instruments and Exchange Act (FIEA)
Key Features
- Management assessment of ICFR effectiveness
- External auditor review of management reports
- Principles-based risk scoping with COSO
- Explicit focus on IT general controls
- Applies to listed firms and subsidiaries
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
FISMA Details
What It Is
The Federal Information Security Modernization Act (FISMA) of 2014 is a U.S. federal law establishing a risk-based framework for protecting federal information and systems. It modernizes the 2002 act, mandating agency-wide security programs focused on confidentiality, integrity, and availability via the NIST Risk Management Framework (RMF).
Key Components
- **7-step RMFPrepare, Categorize (FIPS 199), Select/Implement/Assess (NIST SP 800-53), Authorize, Monitor.
- Continuous diagnostics, incident reporting, and oversight by OMB, DHS/CISA, IGs.
- Metrics-aligned maturity model (Levels 1-5) with core domains like risk management and supply chain security.
- Compliance via ATO and annual reporting.
Why Organizations Use It
Federal agencies and contractors must comply to avoid penalties, debarment, and funding loss. It reduces breach risks, enables market access (e.g., FedRAMP), boosts resilience, and builds stakeholder trust through evidence-based security.
Implementation Overview
Phased RMF application: governance/inventory, control deployment, assessments, continuous monitoring. Applies to agencies, contractors; suits all sizes via tailoring. Requires IG audits, POA&Ms; 12-24 months typical.
J-SOX Details
What It Is
J-SOX (Japanese Sarbanes-Oxley) refers to the internal control over financial reporting (ICFR) provisions of Japan's Financial Instruments and Exchange Act (FIEA), promulgated in 2006 and effective from April 2008. It is a mandatory regulation for listed companies, requiring management assessment of ICFR effectiveness with external auditor review. The approach is principles-based and risk-focused, emphasizing COSO framework components plus explicit IT response.
Key Components
- Five COSO components (Control Environment, Risk Assessment, Control Activities, Information & Communication, Monitoring) augmented by IT Response.
- Entity-level, process-level, and IT general controls (ITGCs) like access, change management.
- No fixed control count; risk-based scoping of key controls.
- Compliance via annual internal control reports audited by external firms.
Why Organizations Use It
- Legal compliance for ~3,800 listed firms and subsidiaries.
- Enhances financial reporting reliability, investor trust, reduces restatement risks.
- Strategic benefits: operational efficiency, IT governance, audit cost savings via automation.
Implementation Overview
- **Phased approachgovernance, scoping, design, testing, reporting, monitoring.
- Targets listed companies in Japan; multinationals align with global ops.
- Requires documentation, testing, remediation; auditor attestation essential. (178 words)
Key Differences
| Aspect | FISMA | J-SOX |
|---|---|---|
| Scope | Federal info systems cybersecurity | Financial reporting internal controls |
| Industry | US federal agencies, contractors | Japanese listed companies, subsidiaries |
| Nature | Mandatory US federal law | Mandatory Japanese securities law |
| Testing | Continuous monitoring, RMF assessments | Annual management assessment, auditor review |
| Penalties | Contract loss, debarment, IG reports | Fines, listing suspension, criminal liability |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about FISMA and J-SOX
FISMA FAQ
J-SOX FAQ
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