FIPS, or the Federal Information Processing Standards, are a set of guidelines developed by the National Institute of Standards and Technology (NIST) to ensure the security and interoperability of federal computer systems. These standards cover various aspects of information technology, including data encryption, software development, and system security. FIPS compliance is essential for federal agencies and organizations that handle sensitive government data. By adhering to these standards, agencies can protect information from unauthorized access and ensure that their systems can communicate effectively with one another, thereby enhancing overall cybersecurity.