Skill: shark1973/afrexai-regulatory-compliance-skip (version 1.0.0)

# Regulatory Compliance Audit Run a full regulatory compliance audit for any business. Covers US, UK, and EU frameworks across 8 compliance domains with gap analysis, risk scoring, and remediation timelines. ## When to Use - Annual or quarterly compliance reviews - Pre-audit preparation (SOC 2, ISO 27001, GDPR, HIPAA, PCI DSS) - New market entry requiring regulatory assessment - Board or investor due diligence on compliance posture - Post-incident compliance gap analysis ## How It Works ### Step 1: Identify Applicable Frameworks Based on the business profile (industry, geography, data types, revenue), determine which frameworks apply: | Framework | Triggers | |-----------|----------| | SOC 2 Type II | B2B SaaS, handles customer data | | GDPR | Any EU customer data, EU employees | | HIPAA | Any PHI (healthcare, benefits, wellness) | | PCI DSS | Processes, stores, or transmits card data | | ISO 27001 | Enterprise clients requesting certification | | SOX | Public company or preparing for IPO | | CCPA/CPRA | >$25M revenue OR >50K CA consumers | | NIST AI RMF | Deploying AI/ML in production | | UK DPA 2018 | UK operations or UK customer data | | FCA/PRA | UK financial services | ### Step 2: 8-Domain Compliance Assessment Score each domain 1-5 (1=non-existent, 5=mature): **Domain 1: Data Governance** - [ ] Data classification policy (public/internal/confidential/restricted) - [ ] Data retention schedule with legal hold procedures - [ ] Data processing agreements with all vendors - [ ] Cross-border transfer mechanisms (SCCs, adequacy decisions) - [ ] Data subject rights workflow (access, deletion, portability) - [ ] Data breach notification procedure (<72hr GDPR, state-specific US) **Domain 2: Access Control & Identity** - [ ] Role-based access control (RBAC) implemented - [ ] Multi-factor authentication on all critical systems - [ ] Privileged access management (PAM) for admin accounts - [ ] Quarterly access reviews with evidence retention - [ ] Automated provisioning/deprovisioning tied to HR - [ ] Service account inventory with rotation schedule **Domain 3: Security Operations** - [ ] Vulnerability management program (scan frequency, SLA by severity) - [ ] Penetration testing (annual minimum, after major changes) - [ ] Security incident response plan (tested within 12 months) - [ ] Log retention meeting regulatory minimums (1yr SOC 2, 6yr SOX) - [ ] Endpoint detection and response (EDR) on all endpoints - [ ] Network segmentation between environments **Domain 4: Business Continuity** - [ ] Business impact analysis (BIA) current within 12 months - [ ] Disaster recovery plan with defined RTO/RPO by system tier - [ ] Backup testing (restore verified quarterly minimum) - [ ] Pandemic/remote work continuity procedures - [ ] Third-party dependency mapping for critical services - [ ] Communication plan (internal + external + regulatory) **Domain 5: Vendor & Third-Party Risk** - [ ] Vendor risk assessment questionnaire (SIG Lite or equivalent) - [ ] Tiered vendor classification (critical/high/medium/low) - [ ] Annual vendor reviews for critical and high-tier vendors - [ ] Right-to-audit clauses in critical vendor contracts - [ ] Fourth-party risk assessment for critical vendors - [ ] Vendor offboarding procedure with data return/destruction **Domain 6: HR & Personnel Security** - [ ] Background check policy (scope appropriate to role) - [ ] Security awareness training (annual + phishing simulations) - [ ] Acceptable use policy signed by all employees - [ ] Code of conduct with reporting mechanisms - [ ] Termination checklist (access removal, device collection, NDA reminder) - [ ] Contractor/temp worker security requirements **Domain 7: AI & Automation Governance** - [ ] AI model inventory with risk classification - [ ] Bias testing and fairness metrics for decision-making models - [ ] Human-in-the-loop requirements defined per use case - [ ] AI incident response procedures - [ ] Transparency documentation (model cards, impact assessments) - [ ] Training data governance and lineage tracking **Domain 8: Financial & Reporting Controls** - [ ] Segregation of duties in financial processes - [ ] Change management procedures for financial systems - [ ] Audit trail for all financial transactions - [ ] Revenue recognition controls (ASC 606 / IFRS 15) - [ ] Tax compliance calendar (federal, state, international) - [ ] Internal audit schedule and findings tracking ### Step 3: Risk Scoring Matrix For each gap identified: | Likelihood | Impact | Risk Score | Action Timeline | |-----------|--------|------------|-----------------| | High | High | Critical | Fix within 30 days | | High | Medium | High | Fix within 60 days | | Medium | High | High | Fix within 60 days | | Medium | Medium | Medium | Fix within 90 days | | Low | High | Medium | Fix within 90 days | | Low | Medium | Low | Next quarterly review | | Low | Low | Informational | Annual review | ### Step 4: Remediation Roadmap Build a 90-day plan: **Days 1-30: Critical Gaps** - Address any gaps with Critical or High risk scores - Implement quick wins (policy updates, access reviews) - Engage external counsel for regulatory interpretation if needed **Days 31-60: Systematic Improvements** - Deploy technical controls (MFA, EDR, log aggregation) - Complete vendor risk assessments for critical vendors - Update employee training program **Days 61-90: Evidence & Documentation** - Build evidence collection system for ongoing compliance - Conduct internal audit of remediated areas - Prepare board-ready compliance dashboard ### Step 5: Compliance Cost Benchmarks (2026) | Company Size | Annual Compliance Budget | Key Cost Drivers | |-------------|------------------------|-----------------| | 10-50 employees | $30K-$80K | SOC 2 audit ($15-30K), tools ($10-20K), training ($5-10K) | | 50-200 employees | $80K-$250K | + DPO/compliance hire ($80-120K), pen testing ($15-40K) | | 200-1000 employees | $250K-$800K | + GRC platform ($50-150K), multiple audits, legal counsel | | 1000+ employees | $800K-$3M+ | + Dedicated compliance team, continuous monitoring, regulatory filings | **Cost of non-compliance (real examples):** - GDPR fines: up to 4% global annual revenue (Meta: €1.2B, 2023) - HIPAA: $100-$50K per violation, $1.5M annual cap per category - PCI DSS: $5K-$100K/month until compliant + liability for breaches - SOX: Criminal penalties, officer personal liability - Average data breach cost: $4.88M (IBM 2024) ### Step 6: Output Format Generate a compliance report with: 1. **Executive Summary** — Overall maturity score (1-5), top 3 risks, recommended budget 2. **Framework Applicability Matrix** — Which frameworks apply and current certification status 3. **Domain Scores** — 8 domains with gap counts and risk distribution 4. **Critical Findings** — Top 10 gaps ranked by risk score with remediation steps 5. **90-Day Roadmap** — Week-by-week action plan with owners and milestones 6. **Budget Estimate** — Compliance cost projection for next 12 months 7. **Board Dashboard** — One-page visual for board/investor reporting ## Industry-Specific Requirements | Industry | Primary Frameworks | Special Considerations | |----------|-------------------|----------------------| | **SaaS/Technology** | SOC 2, GDPR, CCPA | AI governance, open source licensing | | **Healthcare** | HIPAA, HITRUST, FDA (if devices) | PHI everywhere, BAAs required | | **Financial Services** | SOX, PCI DSS, GLBA, FCA/PRA | Transaction monitoring, AML/KYC | | **Legal** | ABA ethics, GDPR, privilege rules | Client confidentiality, conflict checks | | **Construction** | OSHA, environmental, bonding | Safety records, subcontractor compliance | | **E-commerce** | PCI DSS, CCPA/GDPR, FTC | Payment data, consumer protection, returns | | **Manufacturing** | ISO 9001, OSHA, EPA, export controls | Supply chain compliance, ITAR/EAR | | **Real Estate** | Fair Housing, AML, state licensing | Property data, transaction compliance | | **Recruitment** | EEOC, GDPR (candidate data), ban-the-box | AI hiring bias (NYC Local 144), background checks | | **Professional Services** | Industry-specific licensing, SOC 2 | Client data handling, engagement letters | ## 7 Compliance Audit Mistakes That Cost Companies Millions 1. **Treating compliance as annual** — It's continuous. Point-in-time audits miss 60% of gaps that develop mid-year. 2. **Ignoring AI governance** — NIST AI RMF and EU AI Act are here. Every production model needs documentation. 3. **Vendor risk as checkbox** — Your vendor's breach is your breach. Fourth-party risk is real. 4. **No evidence retention system** — If you can't prove compliance, you're not compliant. Automate evidence collection. 5. **Security ≠ compliance** — You can be secure and non-compliant, or compliant and insecure. Address both. 6. **Underbudgeting remediation** — Plan for 2x the estimated remediation cost. Surprises are the norm. 7. **Board reporting as afterthought** — Boards that see compliance dashboards quarterly make better risk decisions. --- Get the full compliance implementation toolkit for your industry: - **Browse all 10 industry context packs** → https://afrexai-cto.github.io/context-packs/ - **Calculate your AI automation ROI** → https://afrexai-cto.github.io/ai-revenue-calculator/ - **Set up your AI agent stack** → https://afrexai-cto.github.io/agent-setup/ Bundles: Playbook $27 | Pick 3 $97 | All 10 $197 | Everything $247


Security scan verdicts — ClawScan: clean | static analysis: clean | VirusTotal: clean | SkillSpector: suspicious (MEDIUM)