What It Is

PCI DSS (Payment Card Industry Data Security Standard) is a global industry standard and contractual framework for securing payment card data. Managed by the PCI Security Standards Council, it mandates technical and operational controls to protect cardholder data (CHD) and sensitive authentication data (SAD) during storage, processing, and transmission. Its control-based approach applies to merchants and service providers handling card transactions.

Key Components

• 12 core requirements grouped into 6 control objectives (e.g., secure networks, vulnerability management, access controls).
• Over 300 sub-requirements with testing procedures.
• Validation via SAQs, ROCs, QSAs, and ASVs; levels based on transaction volume.
• v4.0 emphasizes customized approaches and third-party risk.

Why Organizations Use It

• Contractual obligation from card brands to avoid fines, processing bans.
• Reduces breach costs (avg. $37/record), builds customer trust.
• Enhances risk management, fraud prevention; strategic for payment ecosystems.

Implementation Overview

• **Assess-Repair-Report cyclescope CDE, gap analysis, remediation, validation.
• Applies globally to card-handling entities; costs $5K-$200K+.
• Ongoing: quarterly scans, annual audits; scope minimization key.

What It Is

Basel III is the global regulatory framework issued by the Basel Committee on Banking Supervision (BCBS) post-2008 financial crisis. As a prudential standard for banks, it strengthens capital quality/quantity, introduces leverage constraints, liquidity buffers, and enhances risk coverage to boost resilience and reduce systemic risks. Its multi-metric approach integrates risk-weighted assets (RWA), non-risk-based measures, and supervisory oversight.

Key Components

• **Three PillarsPillar 1 (CET1 4.5%, Tier 1 6%, Total Capital 8%, 2.5% conservation buffer, 3% leverage ratio, LCR/NSFR 100%); Pillar 2 (ICAAP, stress testing); Pillar 3 (disclosures like RWA templates, CDC).
• Output floor (72.5% standardized RWA), revised risk approaches.
• No certification; compliance via national laws.

Why Organizations Use It

Banks implement for mandatory regulatory compliance, avoiding fines/restrictions. Benefits: superior loss absorption, liquidity resilience, comparability, market discipline. Enhances stakeholder trust, funding costs, strategic asset allocation.

Implementation Overview

Phased transformation: gap analysis, data/IT upgrades, model governance, training. Targets internationally active banks globally; audited by national supervisors with RCAP assessments. (178 words)