PIPL
China's comprehensive law for personal information protection
ISO 31000
International standard for risk management guidelines
Quick Verdict
PIPL mandates strict personal data protection for China operations with heavy fines, while ISO 31000 offers voluntary risk management guidelines for all organizations. Companies adopt PIPL for legal compliance in China; ISO 31000 for strategic resilience worldwide.
PIPL
Personal Information Protection Law (PIPL)
Key Features
- Extraterritorial reach to foreign entities targeting China
- Explicit separate consent for sensitive personal information
- Cross-border transfers requiring security assessments or SCCs
- Fines up to 5% of annual global revenue
- Minors under 14 data automatically sensitive
ISO 31000
ISO 31000:2018 Risk management — Guidelines
Key Features
- Eight principles guiding integrated risk management
- Framework emphasizing leadership and governance integration
- Iterative process for risk identification to review
- Customizable for any organization size or sector
- Focus on human factors and continual improvement
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 to domestic and foreign organizations handling data of individuals in China, with extraterritorial scope. Adopting a risk-based approach, it emphasizes consent, minimization, and security, intersecting with Cybersecurity Law and Data Security Law.
Key Components
- Eight chapters, 74 articles covering processing rules, cross-border transfers, individual rights, handler obligations.
- Core principles: lawfulness, necessity, minimization, transparency, accountability.
- Sensitive personal information (SPI) rules, automated decision-making restrictions, data subject rights (access, deletion, portability).
- Compliance via impact assessments, audits; no certification but CAC enforcement.
Why Organizations Use It
Mandatory for China-exposed entities to avoid fines up to 5% annual revenue or RMB 50 million. Enables market access, builds trust, reduces breach risks, supports cross-border operations via SCCs/security reviews. Strategic for MNCs in e-commerce, fintech, healthcare.
Implementation Overview
Phased: gap analysis, data mapping, policies, controls, transfers. Applies universally; high complexity for globals. 6-12 months typical, with ongoing audits, training, representatives for foreigners. (178 words)
ISO 31000 Details
What It Is
ISO 31000:2018, Risk management — Guidelines, is an international standard offering a principles-based framework for systematic risk management. It defines risk as the effect of uncertainty on objectives, providing non-certifiable guidelines applicable across sectors to identify, assess, treat, monitor, and communicate risks, creating and protecting value.
Key Components
- **Three pillars8 principles (integrated, structured, customized, inclusive, dynamic, best information, human factors, continual improvement); Framework (leadership, integration, design, implementation, evaluation, improvement); Process (context, assessment, treatment, monitoring, recording).
- No fixed controls; flexible PDCA-aligned approach.
- Emphasizes leadership commitment and culture.
Why Organizations Use It
- Drives strategic decisions, resilience, and opportunities.
- Aligns with regulations like Basel III; reduces losses.
- Builds stakeholder trust, lowers insurance premiums.
- Competitive edge via risk-adjusted performance.
Implementation Overview
- Phased: diagnose/design, build/deploy, operate/optimize, institutionalize.
- Key activities: policy, risk registers, training, integration.
- Suits all sizes/industries; no certification, internal audits suffice. (178 words)
Key Differences
| Aspect | PIPL | ISO 31000 |
|---|---|---|
| Scope | Personal data protection, processing, transfers | General risk management principles, framework |
| Industry | All handling Chinese personal data, extraterritorial | All industries/sectors worldwide, any size |
| Nature | Mandatory national law, enforced by CAC | Voluntary guidelines, non-certifiable |
| Testing | DPIAs, security reviews, compliance audits | Internal audits, monitoring, management reviews |
| Penalties | Fines to 5% revenue, business suspension | No legal penalties, reputational/operational risks |
Scope
Industry
Nature
Testing
Penalties
Frequently Asked Questions
Common questions about PIPL and ISO 31000
PIPL FAQ
ISO 31000 FAQ
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