Which policy addresses mandatory standards and laws that affect the organization?

Which policy addresses mandatory standards and laws that affect the organization?

• A. Policies
• B. Regulatory Policies
• C. Standards
• D. Best Practices

Answer: (B)

Regulatory policies specify how an organization must operate to comply with external laws and mandatory standards. They translate legal requirements into concrete rules, procedures, and controls so everyday activities align with what the organization is legally obligated to follow. This includes data protection laws, financial or industry regulations, and other statutory obligations that drive mandatory actions and reporting.

Policies in general are internal guidelines that govern behavior and operations, but they aren’t inherently tied to legal mandates. Standards describe formal specifications, which can be voluntary or adopted to meet requirements, but the term alone doesn’t imply mandatory compliance. Best practices are recommended approaches that aren’t legally required.