Governance considerations

(OBJ 5.1)

Organizations must comply with various regulations, depending on industry and location
Regulations cover areas such as
- Data Protection
- Privacy
- Environmental Standards
- Labor Laws
Example:
- General Data Protection Regulation (GDPR): Implemented by the European Union, has significant impact on how organizations collect, store and use personal data of EU citizens.
Non-compliance leads to penalties, fines, sanctions, and reputational damage

Complement regulatory considerations, encompassing contract law, intellectual property, and corporate law
Ensures operation within the bounds of the law, to avoid legal penalties and maintain their integrity and reputation
Example:
- Employment laws address minimum wage, overtime, health and safety, discrimination, and benefits
Litigation risks include breach of contract, product liability, and employment disputes
- Litigation: The process of resolving a dispute between two or more parties through the court system.
Robust legal strategies and resources are needed to manage legal risks

Refer to industry-specific standards, practices, and ethical guidelines prevalent in a particular industry
Not legally binding but influence customer, partner, and regulator expectations
Examaple:
- In the Software Development industry, one of the most widely accepted standards is the use of Agile methodologies for project management and product development.
- Agile methodologies, such as Scrum Kanban, emphasize flexibility, collaboration, customer satisfaction, and delivering functional software in short iterations or sprints.
  - Scrum is a framework with defined roles, events, and artifacts, focused on iterative development within time-boxed sprints. Kanban, on the other hand, emphasizes continuous workflow, visualization, and limiting work in progress. They can also be combined into a hybrid approach called Scrumban.
Non-adoption may lead to competitive disadvantages and stakeholder criticism

Geographical regulations impact organizations at local, regional, national, and global levels
Local considerations include city ordinances, zoning laws, and operational restrictions
- Example: A city might have zoning laws that prevent the establishment of manufacturing facilities in residential areas.
Regional considerations, like CCPA (Californian Consumer Privacy Act) in California, impose state-level regulations
- Example: A regulation imposed by a state or province.
National considerations, e.g., ADA (Americans with Disabilities Act) in the US, affect businesses across the entire country
- Example: Ensure accessibility for costumers with disabilities nationwide. Businesses across the country must comply with.
Global considerations, like GDPR, apply extraterritorially to organizations dealing with EU citizens' data
- Even if a company is outside of the EU, if it collects or processes the data of EU citizens, it must comply with the GDPR.
- It affects businesses globally, not just within the EU.
Conflict of laws between jurisdictions is a significant challenge
- Data Protection laws vary widely around the world
- Requires a deep understanding of the legal landscape of each jurisdiction and a flexible approach to governance.
Navigating these differences requires deep legal knowledge and flexibility in governance
Organizations must comply with myriad of regulations, which can vary depending on the industry and location.