PIPL
China's comprehensive regulation for personal information protection
FISMA
U.S. federal law for risk-based cybersecurity framework
Quick Verdict
PIPL protects personal data in China with consent and localization for global firms, while FISMA mandates NIST RMF security for US federal systems and contractors. Companies adopt PIPL for China market access; FISMA for government contracts and resilience.
PIPL
Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial scope targeting China individuals
- Consent-first with explicit SPI requirements
- Tiered cross-border transfers via SCCs/reviews
- Fines up to 5% annual revenue
- Mandatory DPIAs for high-risk processing
FISMA
Federal Information Security Modernization Act of 2014
Key Features
- NIST RMF 7-step risk management lifecycle
- Continuous monitoring and diagnostics requirements
- FIPS 199 system impact categorization
- NIST SP 800-53 tailored security controls
- Annual IG evaluations and OMB reporting
Detailed Analysis
A comprehensive look at the specific requirements, scope, and impact of each standard.
PIPL Details
What It Is
Personal Information Protection Law (PIPL) is China's comprehensive national regulation, effective November 1, 2021, governing collection, processing, storage, transfer, and deletion of personal information. It applies domestically and extraterritorially to organizations targeting individuals in China. PIPL uses a risk-based approach emphasizing consent, minimization, and accountability, alongside Cybersecurity Law and Data Security Law.
Key Components
- Core principles: lawfulness, necessity, minimization, transparency, security.
- Rules for processing, cross-border transfers (SCCs, security reviews, certification), individual rights (access, deletion, portability).
- 74 articles across 8 chapters; no certification but mandatory compliance with DPIAs, audits for large handlers.
Why Organizations Use It
- Mandatory for legal compliance; fines up to RMB 50M or 5% revenue.
- Mitigates operational risks, enables market access, builds trust.
- Strategic advantages: data resilience, competitive edge in China.
Implementation Overview
Phased approach: gap analysis, data mapping, policies, controls, monitoring. Applies to all sizes/industries handling Chinese PI; CAC enforcement. 6-12 months typical, with ongoing governance.
FISMA Details
What It Is
Federal Information Security Modernization Act (FISMA) of 2014 is a U.S. federal law mandating risk-based information security programs for federal agencies and contractors. It modernizes the 2002 act, focusing on continuous monitoring, incident response, and NIST standards to protect federal systems' confidentiality, integrity, and availability.
Key Components
- **NIST RMF7-step lifecycle (Prepare, Categorize, Select, Implement, Assess, Authorize, Monitor).
- **ControlsNIST SP 800-53 baselines tailored by FIPS 199 impact levels (Low/Moderate/High).
- **OversightOMB policy, DHS/CISA operations, IG annual maturity assessments.
- **ReportingMetrics-aligned evaluations, real-time major incident notifications.
Why Organizations Use It
Mandatory for federal compliance; reduces risks, enables contracts, enhances resilience. Builds trust, efficiency via automation, competitive edge in federal markets.
Implementation Overview
Phased RMF: governance/inventory, categorization, controls, assessments/ATO, continuous monitoring. Targets agencies/contractors; requires audits, POA&Ms, no single certification.
Key Differences
| Aspect | PIPL | FISMA |
|---|---|---|
| Scope | Personal information processing, rights, cross-border transfers | Federal info systems security, risk management, continuous monitoring |
| Industry | All sectors handling Chinese PI, global extraterritorial | US federal agencies, contractors, DIB, civilian systems |
| Nature | Mandatory national law, CAC enforcement | Mandatory federal law, NIST RMF framework |
| Testing | DPIAs, security reviews, CAC audits | RMF assessments, continuous monitoring, IG evaluations |
| Penalties | RMB 50M or 5% revenue, business suspension | Contract loss, debarment, OMB directives |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and FISMA
PIPL FAQ
FISMA FAQ
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