FISMA
U.S. federal law mandating risk-based cybersecurity programs
SOX
U.S. law mandating internal controls over financial reporting
Quick Verdict
FISMA mandates risk-based cybersecurity for US federal agencies and contractors via NIST RMF, while SOX requires public companies to certify accurate financials and effective ICFR. Agencies ensure data protection; companies build investor trust and governance.
FISMA
Federal Information Security Modernization Act (FISMA 2014)
Key Features
- Mandates NIST RMF 7-step risk management lifecycle
- Requires continuous monitoring and diagnostics program
- Applies to federal agencies and contractors supply chains
- Enforces annual independent IG maturity assessments
- Streamlines major incident reporting to Congress
SOX
Sarbanes-Oxley Act of 2002
Key Features
- CEO/CFO personal certification of financial reports
- Management assessment of ICFR effectiveness
- External auditor attestation on internal controls
- PCAOB oversight of public company auditors
- Auditor independence and rotation requirements
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
FISMA Details
What It Is
Federal Information Security Modernization Act (FISMA) of 2014 is a U.S. federal law establishing a risk-based framework for protecting federal information systems. It modernizes the 2002 act, emphasizing continuous monitoring over static compliance for civilian executive branch agencies and contractors.
Key Components
- **NIST RMF7-step process (Prepare, Categorize, Select, Implement, Assess, Authorize, Monitor).
- **NIST SP 800-53 controlsBaselines tailored by FIPS 199 impact levels (low/moderate/high).
- Oversight by OMB, DHS/CISA, IGs with annual metrics and maturity models (Levels 1-5).
- Continuous diagnostics, incident reporting, SSPs, POA&Ms.
Why Organizations Use It
Mandatory for federal agencies/contractors; reduces breach risks, enables market access, builds resilience. Enhances efficiency via automation, supports FedRAMP reciprocity, boosts stakeholder trust through IG validations.
Implementation Overview
Phased RMF approach: governance/inventory, categorize/select controls, implement/assess/authorize, monitor. Applies to agencies, contractors (via NIST 800-171 for CUI); requires annual IG audits, scales by size/complexity.
SOX Details
What It Is
Sarbanes-Oxley Act of 2002 (SOX) is a U.S. federal statute establishing corporate accountability standards. It mandates accurate financial disclosures to protect investors post-scandals like Enron. SOX employs a risk-based, control-focused approach via SEC rules and PCAOB standards.
Key Components
- **Three pillarsPCAOB oversight (Title I), auditor independence (Title II), executive accountability (Titles III–XI).
- Core sections: §302 (CEO/CFO certifications), §404 (ICFR assessments), §409 (real-time disclosures).
- Built on COSO framework; no fixed controls, emphasizes key controls like ITGCs.
- Compliance model: annual management reports, auditor attestations for most filers.
Why Organizations Use It
- Legal mandate for U.S. public companies; reduces fraud risk.
- Enhances investor trust, lowers capital costs, aids M&A/IPO readiness.
- Improves governance, operational efficiency via automation.
Implementation Overview
- **Phased, risk-basedscoping, documentation, testing, monitoring.
- Applies to public issuers; exemptions for smaller/EGCs.
- Requires external audits for §404(b); ongoing PCAOB inspections. (178 words)
Key Differences
| Aspect | FISMA | SOX |
|---|---|---|
| Scope | Federal info systems security | Financial reporting internal controls |
| Industry | US federal agencies/contractors | US public companies/auditors |
| Nature | Mandatory federal law/RMF | Mandatory corporate law/PCAOB |
| Testing | Continuous monitoring/RMF | Annual ICFR assessment/audit |
| Penalties | Contract loss/debarment | Fines/imprisonment/certification |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about FISMA and SOX
FISMA FAQ
SOX FAQ
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