GLBA
U.S. law for financial privacy notices and safeguards
ISO/IEC 42001:2023
International standard for AI management systems.
Quick Verdict
GLBA mandates privacy notices and security for US financial firms handling NPI, while ISO/IEC 42001:2023 provides voluntary global framework for responsible AI governance. Companies adopt GLBA for regulatory compliance, ISO 42001 for ethical AI trust and certification.
GLBA
Gramm-Leach-Bliley Act (GLBA)
Key Features
- Mandates privacy notices and opt-out for NPI sharing
- Requires written information security program with Qualified Individual
- Imposes 30-day FTC breach notification for 500+ consumers
- Demands rigorous service provider oversight and contracts
- Applies broadly to non-bank financial activities
ISO/IEC 42001:2023
ISO/IEC 42001:2023 AI Management Systems
Key Features
- PDCA methodology for AI governance
- Mandatory AI Impact Assessments for high-risk AI
- Annex A with 38 AI-specific controls
- Full lifecycle management from inception to retirement
- Seamless integration with ISO 27001 and 9001
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
GLBA Details
What It Is
Gramm-Leach-Bliley Act (GLBA) is a U.S. federal regulation enacted in 1999. It establishes privacy and security obligations for financial institutions handling nonpublic personal information (NPI). Primary purpose: ensure transparency in data sharing and robust safeguards against unauthorized access. Adopts a risk-based approach via Privacy Rule and Safeguards Rule.
Key Components
- Privacy Rule (16 C.F.R. Part 313): notices, opt-out rights for nonaffiliated sharing.
- Safeguards Rule (16 C.F.R. Part 314): comprehensive security program with administrative, technical, physical controls; Qualified Individual; annual board reporting.
- **Pretexting provisionsanti-social engineering measures. Enforced by FTC for non-banks; no certification, but compliance via audits/enforcement.
Why Organizations Use It
Mandatory for covered entities; reduces breach risks, penalties up to $100K/violation. Builds customer trust, enables secure operations, differentiates in financial services.
Implementation Overview
Phased: scoping, risk assessment, policy development, technical controls (encryption, MFA), vendor oversight, testing. Applies to banks/non-banks globally operating in U.S.; ongoing audits required.
ISO/IEC 42001:2023 Details
What It Is
ISO/IEC 42001:2023 is the world's first international standard for Artificial Intelligence Management Systems (AIMS). It provides requirements for establishing, implementing, maintaining, and improving AIMS to manage AI risks and opportunities responsibly. Applicable to any organization involved in AI (developers, providers, users), it uses the Plan-Do-Check-Act (PDCA) methodology and High-Level Structure (HLS) for interoperability.
Key Components
- Clauses 4-10 cover context, leadership, planning, support, operation, evaluation, and improvement.
- **Annex A38 AI-specific controls for risks like bias, transparency, and lifecycle management.
- Built on PDCA and HLS; includes AI Impact Assessments (AIIAs) for high-risk systems.
- Third-party certification via accredited auditors, with 3-year validity and surveillance.
Why Organizations Use It
- Mitigates AI risks (bias, ethics, drift) while enabling innovation.
- Aligns with EU AI Act, NIST; enhances trust, compliance, reputation.
- Drives competitive edge, procurement advantages, insurance savings.
Implementation Overview
- Phased: gap analysis, policy development, risk assessments, training, audits.
- 6-12 months typical; faster (4-6 months) with existing ISO 27001.
- Universal applicability across sizes, sectors, geographies.
Key Differences
| Aspect | GLBA | ISO/IEC 42001:2023 |
|---|---|---|
| Scope | Consumer financial privacy and NPI security | AI management systems and lifecycle governance |
| Industry | Financial institutions (broad non-banks), US-focused | All industries/organizations, globally applicable |
| Nature | US federal regulation with FTC enforcement | Voluntary international certification standard |
| Testing | Annual risk assessments, penetration testing | Internal audits, management reviews, AIIAs |
| Penalties | Up to $100k per violation, imprisonment | No legal penalties, loss of certification |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about GLBA and ISO/IEC 42001:2023
GLBA FAQ
ISO/IEC 42001:2023 FAQ
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