Global businesses are scurrying to understand and comply with GDPR implementation. While some organizations are ramping up, others are passively watching and others have their heads down hoping that similar to other regulations, GDPR will come and go and their business will be unaffected.
The reality is we are in a digital world and privacy risks around personal information will only continue to grow. No longer are people solely producers of information; they are rapidly becoming owners of information. After recent indiscretions on data usage at Facebook, privacy regulation will not end with the roll-out of GDPR in May 2018. Instead, privacy management will become an essential function for all businesses addressing varying privacy rules from the U.S., Asia, Australia and other regions. Unfortunately, financial and reputational risks will grow with ineffective (or lack of) oversight around consumer, investor, and employee information. The need for developing a technology to address these privacy issues is critical to scale the increasing costs business will incur with processing personal information.
Privacy management programs are evolving to better secure long term financial success by proactively managing the negative impact of data breaches, reputation damage and fines. It is critical now, more than ever to be able to measure, manage, and mitigate privacy risks related to possessing personal data.
Data is a Growing Risk in Every Business
Private data is a risk because it is a commodity that has a market and actively sourced by good and bad actors. Successful corporations will identify data as an asset, use technology to map and monitor their data and understand protections around their data.
Risk Management and Comparisons between Data Privacy and Portfolio Management
Data privacy management is similar to portfolio management. Both functions require policies and procedures as well as active risk management. Failure to actively manage the risk can permanently disrupt and damage a business. Similar to portfolio management, a privacy data management program analyzes the data risks by knowing exposures, purpose, protections, and breaches in a timely manner.
Technology is Essential in Risk Management
Technology allows you to identify, assess, and manage data risks timely. It allows you to be aware of and better manage private data in their possession. You can connect with processors of your private data, communicate internally, and externally as well as centralize information and documentation around personal data.
A robust technology partner will adapt easily to growing changes that include but are not limited to rapid digital advancements as well as global regulatory and consumer demands. It allows a business to allocate greater resources in areas that drive revenue while better managing expenditures in risk management and operations without undo negative risk or effects.
In today's digital world, everyone is connected. Technology should be able to easily connect your data partners internally and externally. This includes controllers and processors of your information. In selecting a technology platform, it is important that you understand all potential barriers when connecting to external partners that may include but are not limited to simply pricing and security.
Communications and documentation are critical when there is an unforeseen event. Technology can serve as a central warehouse of communication and documentation between businesses, people and other third parties. It can generate audit trails around issues and remediations. Businesses can also minimize their risk with employee turnover as information has become better organized. Lastly, technology can systematically receive and send notifications to appropriate parties if and when there is a data breach.
Technology allows you to be proactive and not reactive in understanding data exposures and risk. You can automatically identify location of data with questionnaires that systematically transform to tables or maps. Technology should be intuitive allowing you to identify and manage data risks quickly, easily, and economically.
New privacy technology is a necessity in data privacy management. It can centralize processing owners, documents, assessments, and questionnaires. CENTRL is one of these new and robust platforms used to help businesses become GDPR compliant while evolving to other regional and global regulations.
Maura Harris, Director of Due Diligence, Bostwick Capital
For more information on the CENTRL GDPR compliance platform, click here.