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Technology to Make Compliance Easier and More Efficient

Updated:
November 21, 2024
Written by
Anushika Babu

It’s crazy how much has changed in the last five years. Remember when we barely care about privacy laws? Now it seems like every time you turn around, there's a new one popping up–from Europe's GDPR to California's CCPA. And it’s not slowing down. By the end of this year, it’s predicted that 75% of the world’s population will have their personal data protected by some form of modern privacy regulation.

The question here is not whether businesses are compliant, but whether they can keep up with all these regulations. In 2017, a study found that non-compliance usually cost $14.82 million. Think about it, this data is from seven years ago. How much do you think has it increased today?

Table of Contents

  1. Keeping Up with Global Data Privacy Regulations
  2. Data Privacy Regulations Across Regions
  3. The Biggest Compliance Challenges Your Organization Will Face
  4. How to Simplify Compliance and Protect Your Business
  5. How Technology Can Simplify Your Compliance Process
  6. Take Charge of Your Compliance Strategy Today

Keeping Up with Global Data Privacy Regulations

Keeping track of data privacy laws is a headache. They’re constantly changing, and the penalties for getting it wrong are serious. But staying compliant is not as simple as avoiding fines, it’s also protecting your business and reputation. If you’re handling customer data, you need to know the regulations that set the rules for how you collect, store, and use it. Here are five of the most important regulations you need to be aware of:

General Data Protection Regulation (GDPR):

  • Applies to businesses handling the personal data of EU citizens, even if the business is not based in the EU.
  • Requires businesses to get clear consent from individuals before collecting or processing their data.
  • Individuals have the right to access, correct, and delete their data (the right to be forgotten).
  • Data breaches must be reported within 72 hours.
  • Non-compliance can result in fines up to €20 million or 4% of global annual revenue.

California Consumer Privacy Act (CCPA)

  • Applies to businesses that handle personal data of California residents.
  • Gives consumers the right to know what personal data is being collected about them.
  • Consumers can request deletion of their data and opt-out of having their data sold.
  • Requires businesses to include Do Not Sell My Personal Information links on their websites.
  • Fines for non-compliance can reach up to $7,500 per violation.

Health Insurance Portability and Accountability Act (HIPAA)

  • Governs the handling of protected health information (PHI) in the U.S.
  • Requires businesses to implement safeguards to ensure the confidentiality, integrity, and availability of medical data.
  • Patients have the right to access their medical records and request corrections.
  • Violations can result in fines ranging from $100 to $50,000 per violation, up to $1.5 million per year for repeat violations.
  • Criminal penalties, including imprisonment, may apply if violations involve willful misuse of health information.

Payment Card Industry Data Security Standard (PCI DSS)

  • Applies to any business that processes credit card transactions.
  • Sets out 12 key security requirements, including encryption of cardholder data and regular security testing.
  • Requires businesses to maintain a secure network, protect cardholder data, and manage vulnerabilities.
  • Failure to comply can lead to fines, increased transaction fees, or loss of the ability to process credit card payments.
  • Non-compliance may also result in the business being held liable for fraudulent transactions.

Data Privacy Regulations Across Regions

We all know that the laws don’t stop with GDPR or CCPA. You also have to consider the locations of your target market. Here’s what you need to have on your radar:

California Privacy Rights Act (CPRA):

  • Expands on CCPA with more stringent protections for personal data, particularly sensitive information like Social Security numbers, health data, and biometrics.
  • Establishes the California Privacy Protection Agency (CPPA) to enforce privacy laws and handle violations.
  • Grants consumers new rights, including the ability to correct inaccurate personal information.
  • Introduces additional business requirements for limiting the use, sharing, and retention of personal data.
  • Requires risk assessments and regular reports for businesses processing high-risk data.

China’s Personal Information Protection Law (PIPL)

  • Enforces strict guidelines on collecting, using, and transferring personal data, especially across borders.
  • Requires explicit consent from individuals for cross-border data transfers and data processing.
  • Imposes requirements for businesses to conduct security assessments for exporting personal data.
  • Provides individuals the right to access, correct, and delete their personal information.
  • Non-compliance can result in significant fines, up to ¥50 million or 5% of annual revenue, and potential business suspensions.

India’s Personal Data Protection Bill

  • Modeled after GDPR, with a focus on consent-based data collection and processing.
  • Provides individuals with the right to access, correct, and erase their personal data.
  • Mandates that specific categories of sensitive data be stored and processed within India (data localization).
  • Covers biometric and health data, among other sensitive information.
  • Non-compliance can result in fines up to 4% of a company’s global annual turnover.

Brazil’s General Data Protection Law (LGPD)

  • Applies GDPR-like regulations to Brazilian citizens’ data, emphasizing transparency and accountability.
  • Strengthened enforcement mechanisms, with increased penalties for non-compliance.
  • Requires businesses to obtain explicit consent from individuals before processing their personal data.
  • Imposes stricter rules on data usage, storage, and sharing.
  • Penalties for non-compliance can include fines of up to 2% of a company’s revenue, capped at 50 million reais per violation.

New EU Guidelines

  • The European Data Protection Board (EDPB) continues to issue updated guidelines addressing emerging technologies like AI and blockchain under GDPR.
  • New guidelines focus on international data transfers, particularly in response to the Schrems II ruling, which affected data flows between the EU and the U.S.
  • Special attention is being given to AI-driven technologies, clarifying how automated decision-making tools should comply with GDPR.
  • Keeping up with these guidelines is essential for ensuring compliance across EU member states.

The bottom line is this: if you’re operating across multiple regions, keeping up with these regulations is a must. No one wants to be caught off guard by a compliance issue that could have been avoided.

The Biggest Compliance Challenges Your Organization Will Face

Data compliance will only get more complicated from here. Regulations are growing more complex which puts a lot of pressure on businesses to keep up. If you’re leading an enterprise, these are some of the biggest challenges that could be keeping you and your team up at night.

  1. Keeping up with regulatory changes is a full-time job. For global businesses, it’s nearly impossible to track every update, and missing just one change can leave you open to huge fines or legal trouble. Staying on top of these shifting rules across multiple regions can feel like a never-ending battle.
  2. Managing data storage and handling is getting more complex by the day. With the large amounts of data your company handles, keeping it organized, secure, and compliant is a huge challenge. If data is improperly stored or accessed, you’re exposing your business to serious violations. Making sure that every record is where it should be, retrievable when needed, and safely disposed of when it’s no longer required can be an operational nightmare.
  3. Cross-border data transfers are becoming a serious compliance headache. Moving data across regions with differing privacy regulations—like transferring data between the EU and the U.S.—comes with more risks. With strict rules like GDPR’s requirements for international transfers, it’s easy for your business to fall out of compliance. Recent rulings like Schrems II only add to the complexity, which leaves global businesses scrambling to adapt.
  4. Handling consent properly is more complicated than it seems. Under GDPR and CCPA, it doesn’t end in just managing user content. You need systems in place to track, store, and honor each user’s consent preferences—and give them the ability to change those preferences at any time. If your business relies on third-party services, you also have to make sure that they are compliant with these consent rules.
  5. Third-party vendors can put your compliance at risk. Even if your business is compliant, the vendors and partners you work with might not be. Regulations like GDPR hold you responsible for the actions of your third-party vendors, meaning if they mishandle data, your business faces the consequences.
  6. Ensuring your employees are properly trained is critical—and difficult to maintain. Data privacy laws mean nothing if your workforce isn’t fully trained and aware of their responsibilities. However, getting everyone—from the C-suite to entry-level employees—on the same page with the latest privacy regulations takes time and resources. Without proper training, even well-intentioned employees can make costly mistakes.
  7. Balancing innovation and compliance is an ongoing challenge. As your organization adapts more technologies—whether it’s AI, data analytics, or advanced cloud services—you’re walking a fine line between innovation and compliance. Many regulations haven’t caught up with new tech, and those gray areas? They’re very risky. Finding the balance between using data to innovate and staying within regulatory bounds is a constant challenge for business leaders.

How to Simplify Compliance and Protect Your Business

Making sure that your organization is compliant with privacy laws doesn’t have to be a constant source of stress. There are right practices that you can adopt to minimize risk and streamline your approach. Here are some best practices that will make managing compliance easier for you and your organization:

Stay ahead of potential risks with regular privacy audits.

Instead of waiting for something to go wrong, regular audits help you catch compliance issues before they become expensive problems. It’s a proactive move that saves you from the panic and the scramble if there will be a new regulation that you’ll have to comply with. With periodic checks, you’ll have a clear picture of how data is being handled, where you’re compliant, and where you need to tighten things up. It’s less stressful in the long run and keeps you in control of your business.

Minimize data collection to reduce exposure and lower your risk.

Less data means less risk—it’s that simple. If you only collect and store what you actually need, you’re reducing the chances of a breach and you’re making your life easier when it comes to managing data. Plus, you won’t be paying for the extra storage or dealing with unnecessary data that could turn into a liability. Having a clear data minimization policy means fewer things to worry about, and your team won’t have to manage mountains of unnecessary information.

Build compliance into your systems from day one with Privacy by Design.

Instead of treating privacy like a chore, why not bake it into your systems from the start? Privacy by Design makes sure your processes and technologies are built with compliance in mind from day one. This saves you from having to go back and fix things later, which is always more expensive and time-consuming. It’s a smoother, more efficient way to ensure that you’re staying compliant as your business grows.

Create cross-functional privacy teams for better collaboration.

Data privacy isn’t just the job of IT or legal, it’s everyone’s responsibility. By pulling together a cross-functional team that includes legal, IT, security, and key decision-makers, you’re making sure all aspects of compliance are covered. These teams can work together to spot risks, share insights, and move quickly when something needs to be fixed. It’s a faster, more holistic approach that keeps compliance from becoming a bottleneck.

These practices will take a lot of the guesswork out of compliance. You’ll be protecting your business while staying ahead of regulations and making sure your customers’ data is handled with care. All without slowing down operations.

How Technology Can Simplify Your Compliance Process

Staying compliant with data privacy laws is tough enough without having to manually manage every detail. Technology can take a huge weight off your shoulders by automating the hard parts and reducing human error. Let’s talk about how the right tools can help streamline your compliance efforts and protect your business.

Automate compliance tasks to reduce manual errors and save time

Automating key tasks like managing data access and user consent can free up your team to focus on bigger priorities. With automation tools, you don’t have to worry about missing a step or falling out of compliance. It’s all handled in the background.

Suggested Tool: OneTrust

OneTrust is a leading compliance automation platform that helps manage user consent, track privacy laws, and automate workflows related to data access. It’s trusted by organizations worldwide for its comprehensive privacy, security, and governance features.

Understand where your data is with mapping and classification tools

Let me ask you this: do you know where your data is stored and how it’s classified? Data mapping and classification tools give you a clear view of what data you have, where it’s located, and how it’s being used. Making sure that sensitive data is properly managed and stored will help you stay on top of privacy regulations.

Suggested Tool: Collibra

Collibra is a popular data governance tool that offers powerful data mapping and classification capabilities. It helps businesses discover, classify, and monitor their data across multiple systems, which makes compliance audits smoother and more efficient.

Protect sensitive information with secure data storage solutions

This should be a top priority. Encryption and tokenization solutions make sure that even if your data is accessed, it can’t be used by unauthorized individuals. This not only reduces the risk of a breach but also guarantees that you meet strict data protection regulations.

Suggested Tool: Vormetric by Thales

Vormetric Data Security provides encryption and tokenization solutions for securing sensitive data. It offers robust encryption for data at rest and in transit that helps businesses meet data privacy regulations and protect critical information.

Manage third-party risk with vendor assessment tools

Your compliance is not limited to just your own practices, it also involves the third-party vendors that you work with. If they’re not compliant, you could be held accountable. Vendor assessment tools help you evaluate and monitor your vendors to make sure they meet the necessary privacy standards.

Suggested Tool: SecurityScorecard

SecurityScorecard is a highly regarded platform that assesses third-party vendors’ cybersecurity and compliance posture. It provides a clear risk score for each vendor, helping you monitor and manage third-party risk proactively.

Train your teams on compliance standards

Compliance is only as strong as your team’s understanding of it. Whether it’s GDPR, CCPA, or PCI-DSS for handling payment data, ongoing training is essential to make sure your staff knows how to apply the right practices. Well-trained employees reduce the risk of violations caused by human error and help your business maintain a strong compliance posture.

Suggested Tool: AppSecEngineer’s PCI-DSS Training

AppSecEngineer offers a dedicated PCI-DSS Training course designed to ensure your team understands and complies with payment security standards. It's a training that provides hands-on, real-world scenarios to equip your staff with the knowledge they need to maintain PCI-DSS compliance effectively.

Take Charge of Your Compliance Strategy Today

Now is the time to be proactive in keeping your organization from regulatory pitfalls. With AppSecEngineer, you can ensure your teams are fully equipped to manage compliance no matter how complicated it gets. With compliance training, you can avoid huge fines and also strengthen customer trust, and safeguard your business’ future. How? Your teams will know exactly what to do from the beginning.

AppSecEngineer offers customized learning roadmaps with Journeys, a tailored approach that builds a clear, structured path for your team to upskill in data privacy and compliance standards. These roadmaps are designed to ensure your teams gain the right skills at the right time.

Now is the time to invest in your team’s readiness. With AppSecEngineer, you can build a robust compliance culture and protect your organization from the growing complexities of data privacy regulations.

Source for article
Anushika Babu

Anushika Babu

Marketer, Designer and Mom. Her coffee is never hot enough.

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