With comprehensive data privacy regulations such as GDPR, SOX, CCPA, etc. listing out rigorous data management guidelines, enterprises need to have in place data management policies and solutions that help them meet the mandatory obligations.
These data privacy regulations have made customer data security one of the key priorities for enterprises. The HR department, in particular, is a key partner in compliance management. They are well equipped to educate workers in emerging security protocols and assist in the successful implementation of new technologies to ensure the workflow is not interrupted.
Increasing Compliance Costs
The ‘Cost of a Data Breach’ study (2019) by IBM states that the average cost of a data breach jumped to an average of $3.92 million in 2019, but in the United States, the cost per breach stood at $8.9 million. The recovery process, which includes identifying how the system was compromised, what data was impacted, and getting systems back online, drives much of the expense. For many organizations, recognizing the extent of harm is difficult because existing security systems aren’t configured for data visibility or access control, both of which allow security teams to monitor who has accessed what data and when.
Data visibility is a particularly acute problem in ERP systems because it involves highly confidential business data, such as financial information, intellectual property, etc. They are also the last piece of the digital infrastructure to be upgraded because ERP systems hold so much useful data. When updates are skipped, security gaps emerge, or new security features are added to a legacy framework. The “black box” of ERP systems will cause delays in damage assessments, resulting in the possibility of hefty penalties as the GDPR allows impacted customers to be informed within 30 days of when information is breached.
Enterprises and the Right to Know
Compliance costs were primarily guided by the flood of demands from the users for the “right to know” and “right to be forgotten.” This requires the organization to define, coordinate, and exchange all data relating to every single customer, breaking the concept of the black box that existed before GDPR. Recent research shows the estimation that each request costs approximately $1,400, rapidly adding to the cost of enforcement.
Outdated and disparate infrastructure also poses significant challenges to compliance management, mostly when adhering to the response time limits. The lack of consolidated, accessible data structures makes meeting the mandatory disclosure of information to customers a costly affair. As a result, security and enforcement departments have started to join together to understand better the enterprise’s business data lifecycle and how it can be protected effectively.
Regulations and Industry Trends
The fresh regulatory pressures brought by the new regulations are, in many ways, associated with evolving cybersecurity trends. One of the fastest rising trends in data breaches is insider threats, accounting for 34 percent of attacks in 2019. Security features that allow granular user activity monitoring in real-time ensure that access can be managed correctly while still adhering to the compliance guidelines. As a result, companies strengthen both protection and enforcement so they will be better equipped to respond to insider attacks, mitigate direct harm caused by a breach as well as void fines incurred by damaging consumer data.
The data privacy regulations have had a huge effect on the public desire for privacy and protection. Many customers are aggressively pursuing additional ways to secure and handle their personal data with cybersecurity issues entering the mainstream. For the company, this has increased the receptivity of employees to new security features such as MFA for internal systems. System administrators must unify the heightened standards for data security generated by the regulations to reduce compliance costs, especially with complex ERP systems.
Advanced security software can solve problems faced in all departments by facilitating safe migrations, allowing greater data visibility in new systems, and reducing the costs of compliance in the long term. The right security tools can lay the foundation for a program that effectively fulfills the multidisciplinary role of security and engages all necessary experts to protect data and minimize compliance costs.