1.0 INTRODUCING DATA COMPLIANCE FOR BUSINESSES
AN INTERESTING FACT
1834 was the year of the first reported cybercrime. Two thieves hacked the French Telegraph System to steal stock market information. Things have not changed since, except the amount of activity.
In the Hexnode webinar we looked at what is happening now, and what could happen in the future across the world of data compliance, and if you wish to listen please visit via the link provided at the end of this article.
While this is not Market Data Guru’s usual stomping ground, it is a topic we take most seriously as it impacts at the most fundamental level our readers and clients.
DATA GOVERNANCE IS A NECESSARY EVIL, BUT IT IS ALSO GOOD BUSINESS
The objective of the webinar is to look at why businesses need to be taking data compliance seriously, the risks involved and why governments are getting involved and how that will and does impact compliance strategies.
The sad fact is that cyber-crime perpetrators invariably exist beyond the jurisdictional limits. This means relying on offence is not the best option for regulators and governments seeking to protect businesses and people. The alternative is defence, which means making businesses and people responsible for protecting themselves within a legal framework which is dynamic in long term development and application. The EU’s GDPR is fast becoming a de facto benchmark, but there is more to it than that.
As we shall demonstrate for those companies seeking to skimp, or worse, avoid the issue, non-compliance will either cost them by orders of magnitude more, or simply drive them out of business.
For Perspective:
1.The top 10 cyber-crimes impacted 5.4 Billion people, so many are getting hit multiple times
2.The top 10 fines totalled $2.7 Billion, and this is one figure that will grow exponentially relative to the numbers of people hit
3.0 DATA COMPLIANCE BUSINESS & COST RISK
With large data breaches come matching fines, and under GDPR and other regulations they can be ratcheted up, for instance Equifax’s US$575M fine was entry level. What would Yahoo’s fine be for a similar data breach in 2022?
The impacts of non-compliance?
- DLA Piper: 2021 to 2022 EU GDPR Fines increased 7X from €159 Million to €2,100 Million. Trend is only up
- DLA Piper: Greatest compliance challenge is ensuring data transfers between EU and 3rd countries are compliant with 2020 ‘Schrems II’ judgment, Data can only be transferred out of the European Union if the origin country can guarantee the same level of data protection as GDPR
- For international businesses this means compliance goes beyond security to competing/conflicting environments
IN CONCLUSION: DATA COMPLIANCE IS ALL ABOUT PEOPLE
Data compliance is all about taking ownership, not just Intellectual Property Rights, but in terms of Stewardship, and recognising responsibilities, accountabilities and fundamentally the rights of every single stakeholder however they are connected.
People are necessary and businesses just need to follow 6 simple rules:
1.Design the rules for data governance
2.Implement & document those rules
3.Continuously Manage & administer the rules
4.Provide vigilant, constant oversight & validation
5.Manage failures, mitigate the problems & report thoroughly
6.Tools are only as good as the people using them
Foundational Rule for Data Compliance best practices:
Protect your business, look after your clients and partners by developing best processes, using the right tools, and investing in your talent, all properly resourced.
Keiren Harris 15 July 2022
To listen to the webinar please visit https://www.hexnode.com/events/webinars/data-compliance-episode-4-the-present-and-the-evolving-future/
Please contact info@marketdata.guru for a pdf copy of the article, and download the report for free from www.marketdata.guru. The table of contents is on the next slide.
For information on our consulting services please email knharris@datacompliancellc.com
