Fundamentals
Living up to the laws, rules and standards that apply - for example NIS2, GDPR or ISO 27001.
Formal
The state of meeting the requirements set by laws, contracts, standards and the organisation's own policies, and being able to show proof that they are met.
In plain English
Like a car passing its road-worthiness check - it proves the car meets the rules, but not that it is driven safely.
In practice
Before the yearly audit, the compliance officer at a Danish pension fund gathers proof that backups have been test-restored and that every employee has completed the required security training.
Why it matters
Failing to comply can mean fines, lost customers and personal liability for managers - and requirements often force needed work that would otherwise be put off.