Argenbright put a compliance program in place at Philadelphia Airport -- but not before another FAA audit showed that the company continued to violate regulations, including the hiring of individuals with prior criminal records.

CNN: Review of airport security firm shows security breaches continue

Regulations supporting effective disclosure, as well as improved audit, accounting and risk-rating standards, should be preferred to restrictive regulatory controls that block innovation and growth.

FORBES: Magazine Article

Activists are lobbying for new regulations, beyond a Federal Trade Commission settlement last year that calls for the government to audit Facebook's privacy policies for 20 years.

WSJ: Crovitz: Will Regulators Unfriend Facebook?

Currently, no federal regulations are in place to govern cloud computing, and according to an April 2011 Information Systems Audit and Control Association survey of 1, 800 Chief Information Officers (CIOs), compliance is a top risk.

FORBES: Implementation of Cloud Computing Solutions in Federal Agencies : Part 2 - Challenges of Cloud Computing

Though the FTC's strengthened protections would govern private companies, hospitals and insurers would fall under the far looser regulations created in May by HHS. Those rules allow the company to avoid breach disclosures if an audit firm decides that a breach didn't constitute a real privacy risk.

FORBES: Security