Data protection and data privacy compliance risk is a growing concern for enterprises

The results of the survey shows that regulatory pressure continues to be top of mind for businesses worldwide

Data protection and data privacy compliance risk is a growing concern for enterprises - CIO&Leader

The latest findings from the EY Global Forensic Data Analytics Survey indicates that regulatory compliance along with data protection and data privacy are two risks in sharp focus this year. Through this analysis, EY highlights how companies can measurably improve their legal, compliance and fraud risks via FDA technologies. FDA is the collection and analysis of all types of data with the objective to manage legal, compliance and fraud risks. When enhanced through human intelligence, companies can use FDA technologies and techniques to better monitor, prevent, detect, investigate and predict anomalies in business activities and transactions.

 

The results of the survey shows that regulatory pressure continues to be top of mind for businesses worldwide. Data  protection and data privacy regulations are being enacted around the world. A total of 78% of respondents reported a growing concern about data protection and data privacy compliance risk. Comparatively, only 48% indicated that external fraud and fi nancial crime risks have increased.

 

As compared to two previous surveys in 2014 and 2016 suggested that companies were holding back on FDA investment because of reservations about cost and lack of confi dence in the underlying technologies. This year, respondents reported that spending on FDA has increased substantially. The average annual spend per respondent is 51% higher than what was reported in 2016. 

 

About 14% of respondents are using robotic process automation tools for the first time and we learned that 14% are currently using them to manage legal, compliance and fraud risks. Further, 39% of respondents reported that they are likely to adopt robotic process automation within the next year.

 

The survey also demonstrates that few companies are confident that they currently have the requisite skill sets needed.

 

Only 13% of respondents feel that their companies’ FDA technical skills are very mature, while 12% believe that their organizations have the right data analytics or data science expertise.The lack of skill sets is also refl ected in how respondents rated the maturity level in some aspects of FDA. More than half of the respondents consider their abilities to integrate multiple data sources for better risk detection and mitigation immature. Moreover, the survey emphasizes on strong leadership support that is critical for FDA to be successfully integrated into risk management functions. The board of directors play a key role in setting the direction of the company’s risk agenda. We asked respondents whether their boards have recently addressed the topic of data analytics and its use in managing legal, compliance and fraud risks. The results reveal that the majority of boards have addressed the topic and an additional 15% said that while they have not yet done so,there are plans to do so in the future.

 

Finally,  the survey reveals that too many companies are still not prepared for the GDPR. When asked to describe their company’s current status with respect to complying with the GDPR, only 33% of respondents said that they have a plan, while 39% said that they are not familiar with the GDPR at all and 17% said that they have heard of the GDPR but have not yet taken any action. Only 13% of respondent companies across the Americas and only 12% in Asia-Pacifi c have a compliance plan that addresses the GDPR. Considering the extraterritoriality of the GDPR — meaning it impacts foreign companies that process the data of EU residents — these percentages are very low. 


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