Data Compliance and Governance: A Professional Guide

Michael Peters

3 months ago

In today’s data-driven world, organizations handle vast amounts of sensitive information daily. Data compliance and robust governance are crucial for maintaining data integrity, confidentiality, and availability while avoiding the pitfalls of a privacy breach or noncompliance.

This article discusses what it means to implement data governance policies for data compliance across several different (privacy-centric) frameworks.

Understanding Data Compliance and Governance

Data compliance refers to adhering to laws, regulations, and guidelines that dictate how data should be managed, stored, and protected. If you’re working under requirements like GDPR or CCPA, you know exactly what these are.

To effectively manage data compliance requirements, you’ll have to tackle the question of governance or system-wide policies and processes used to adhere to these requirements. Effective governance ensures that data is accurate, accessible, and secure, thus facilitating compliance with regulatory requirements.

Data-Privacy Compliance Frameworks

Health Insurance Portability and Accountability Act (HIPAA)

HIPAA sets the standard for protecting sensitive patient data in the healthcare industry. Organizations with protected health information (PHI) must follow all required physical, network, and process security measures.

Core data compliance requirements for HIPAA include:

Ensuring the confidentiality, integrity, and availability of all e-PHI.
Identifying and protecting against reasonably anticipated threats to the security or integrity of the information.
Protecting against reasonably anticipated, impermissible uses or disclosures.
Ensuring compliance by their workforce.

Sarbanes-Oxley Act (SOX)

SOX was enacted to protect shareholders and the general public from accounting errors and fraudulent enterprise practices. It mandates strict reforms to improve corporate financial disclosures and prevent accounting fraud.

Core data compliance requirements for SOX include:

Ensuring the accuracy and reliability of corporate disclosures.
Implementing internal controls and procedures for financial reporting.
Conducting annual audits and providing evidence of accurate and complete financial reporting.

System and Organization Controls 2 (SOC 2)

SOC 2 is a framework for managing customer data based on five “trust service principles”—security, availability, processing integrity, confidentiality, and privacy. It is particularly relevant for technology and cloud computing organizations that handle sensitive customer information.

Core data compliance requirements for SOC 2 include:

Implementing and documenting robust internal controls.
Ensuring system and data security, availability, processing integrity, confidentiality, and privacy.
Regularly undergoing third-party audits to verify compliance.

General Data Protection Regulation (GDPR)

GDPR is a regulation in EU law on data protection and privacy for individuals within the European Union and the European Economic Area. It also addresses the transfer of personal data outside the EU and EEA areas.

Core data compliance requirements for GDPR include:

Ensuring data protection by design and by default.
Obtaining explicit consent for data processing.
Allowing data subjects to access, rectify, erase, and restrict the processing of their data.
Reporting data breaches within 72 hours.

California Consumer Privacy Act (CCPA)

CCPA enhances privacy rights and consumer protection for residents of California, USA. It gives consumers the right to know about and control how their data is collected, used, and shared.

Core Requirements:

Providing transparency about data collection and usage practices.
Offering consumers the right to opt out of selling their personal information.
Ensuring data subjects can access and delete their personal information upon request.
Implementing reasonable security measures to protect consumer data.

What Are the Consequences of Non-Compliance?

Failure to maintain data compliance can result in severe consequences, including financial penalties, legal action, and reputational damage. Here are some potential repercussions:

Financial Penalties: Non-compliance with data protection regulations can lead to substantial fines. For example, GDPR violations can result in fines of up to €20 million or 4% of annual global turnover, whichever is higher. Similarly, HIPAA breaches can incur penalties ranging from $100 to $50,000 per violation, with a maximum annual penalty of $1.5 million.
Legal Action: Organizations found in violation of data compliance regulations may face lawsuits from affected individuals or entities. Legal proceedings can be costly, time-consuming, and damaging a company’s reputation.
Reputational Damage: Data breaches and non-compliance issues can significantly tarnish an organization’s reputation. Loss of consumer trust can lead to decreased business opportunities and long-term financial loss.
Operational Disruptions: Investigations and remediation efforts following a compliance breach can disrupt normal business operations. This can lead to reduced productivity and additional costs associated with addressing compliance failures.

Implementing Effective Data Governance Policies

Effective data governance ensures compliance with regulatory requirements and the safeguarding of sensitive information. Here are some strategies for implementing robust governance policies:

Establishing a Data Governance Framework: A well-defined governance framework sets the foundation for managing data assets. This includes creating a data governance committee, clear policies and procedures, and assigning data stewards.
Data Classification and Management: Proper data classification is crucial for understanding the sensitivity and importance of different data types. Implement a data classification scheme to categorize data based on its value, sensitivity, and regulatory requirements. This helps in applying appropriate security measures and ensuring compliance.
Access Controls and Identity Management: Implement strict access controls to ensure only authorized personnel can access sensitive data. Use identity management solutions to enforce role-based access controls and monitor access patterns. Regularly review and update access permissions to prevent unauthorized access.

Data Security Measures

Implement robust security measures to protect data from breaches and unauthorized access.

This includes:

Encryption: Encrypt data at rest and in transit to protect it from unauthorized access.
Firewalls and Intrusion Detection Systems: Use firewalls and intrusion detection systems to monitor and block suspicious activities.
Regular Security Audits: Conduct regular security audits to identify and address vulnerabilities.

Data Quality Management

Ensure the accuracy, completeness, and reliability of data through data quality management practices. Implement data validation and cleansing processes to maintain high-quality data. Regularly monitor data quality and address any issues promptly.

Incident Response Plan

Develop an incident response plan to address data breaches and compliance violations promptly. This includes:

Incident Detection: Implement systems to detect and alert potential data breaches.
Incident Response Team: Form a dedicated team to handle incidents and coordinate response efforts.
Communication Plan: Establish a communication plan to inform stakeholders and regulatory authorities in case of a breach.

Training and Awareness

Train employees on data governance policies, compliance requirements, and security best practices regularly. Conduct awareness programs to inform employees about the latest threats and compliance updates. Encourage a culture of accountability and responsibility regarding data protection.

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Continuum GRC is a proactive cyber security® and the only FedRAMP and StateRAMP-authorized cybersecurity audit platform worldwide. Call 1-888-896-6207 to discuss your organization’s cybersecurity needs and learn how we can help protect its systems and ensure compliance.

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