Non-compliance is the failure to comply with local, federal or industry regulations regarding data privacy and security.

Non-compliance can be costly. Organisations may incur fines, suffer a loss of reputation or even face legal  action.

A 2008 study by the Phonemon Institute shows that the average cost of a data breach is $6.3 million, with the average cost per customer record increasing by 43% between 2005 and 2007.