Keeping pace with today’s shifting regulatory landscape can feel like trying to hit a moving target. And no company, regardless of industry, size, or location, is exempt from this pervasive challenge.
Complex compliance and security issues are emerging at an unprecedented rate, alongside new technologies and advanced data management tools and processes, all shaped by fluctuating geopolitics, social issues, and economic challenges. It’s no wonder many people and organizations are experiencing a severe case of compliance anxiety as they scramble to adhere to new international laws and industry standards.
Unfortunately, corporate leaders globally report that compliance management efforts are falling short across several
governance, risk, and compliance (GRC) pillars. According to
McKinsey, the cross-industry average compliance assessment score sits at a concerning 2.9 out of 4.0.
Here are three proactive strategies to meet evolving data privacy and security challenges head-on (and keep compliance anxiety at bay):
Leverage established processes to navigate emerging technologies
Many organizations are prioritizing security oversight in their budgeting decisions for generative AI.
KPMG reports that 52% cite risk and compliance as a budgetary priority, with 67% planning to allocate funds for data and cybersecurity protections for their AI models.
Fear over potential consequences of non-compliance is particularly high for businesses that are already struggling to keep pace with new or changing regulations. For example, 28% of
California Consumer Protection Act (CCPA) professionals surveyed by
SurveyMonkey say their company has experienced issues related to the law. Businesses that already prioritize strong compliance, however, are better positioned to respond to advancements. They are tasked with expanding current policies to incorporate emerging tech, not with creating entirely new frameworks from scratch.
Recognizing this, the smarter approach is to optimize what you already have when phasing in new technology. Start by harnessing existing tools and processes and seamlessly integrating emerging technologies into established workflows — familiar frameworks increase the chances that your employees will embrace and engage with your governance and risk management program. From there, it becomes possible to clearly redefine your company’s understanding of risk based on the nuances of the new technology. Remember to offer full control and transparency to users, and crucially, keep a human in the loop.
Evaluate actual data management needs before costly investments
Neither purchasing sophisticated security tools nor updating legacy systems comes cheap. Regulators acknowledge that both options can significantly impact businesses, particularly smaller ones. But did you know that the majority of data breaches and subsequent fines stem from neglecting simple, foundational security steps, such as education, awareness, and questioning whether the business truly needs to collect vast amounts of data to achieve its goals?
Before jumping to expensive, potentially unnecessary solutions — which may solve a problem you don’t actually have — conduct a rigorous evaluation of your existing
data management practices. Are you disciplined about the data you collect? Do you limit collection of, and access to, sensitive data? Do you consistently question whether data is necessary for a particular objective? Every company, regardless of size, can and should conduct this type of internal evaluation to determine whether more sophisticated data protection tools and technology are required.
In the world of security and compliance, having more data is not necessarily better; having the right data, strategically managed, is always better. Manage to the level of compliance you need based on the sensitivity of your data, and you’ll maximize security while minimizing risk and unnecessary expenditure.
Handle cross-border data compliance with care
Cross-border data transfers are as much about the shifting geopolitical landscape as they are about core privacy and security principles. For businesses, it is, to a degree, out of their hands. Unfortunately, a cross-border data breach will likely impact others’ willingness to share data, whether or not your business did everything possible to mitigate risk. Once trust is lost, it is difficult to restore.
The good news is, there are proactive steps businesses can take to help prevent a cross-border data breach, and to significantly mitigate the fallout should one occur. It’s important to understand a few key things about your data transfers: the type of data crossing borders, the purpose of the transfer, the privacy-enhancing technologies you can use to protect the data (like encryption in transit), and the regulatory landscape of both originating and destination regions. Contextualizing these factors can help determine the risk level for data privacy and security in your transfer impact assessment and ensure data remains protected and compliant across borders going forward.
A little acceptance goes a long way
It is possible to buffer compliance anxiety not with defiance, but with acceptance. We all want our data protected to the highest level of compliance, and we want to know that organizations with access to our data feel just as strongly.
The businesses that will come out on top are those that, where possible, use existing systems to meet new needs as they emerge; optimize their data management to their actual requirements; demonstrate transparency with customers, regulators, and vendors; and maintain trust by proactively taking steps to minimize risk for not only themselves but for the people and organizations they partner with. Embrace these changes and accept them for what they are — opportunities to make the world’s data even more secure and to build stronger, more trusted relationships.
