What is Data Compliance?
Data compliance is a critical aspect of data governance that involves the formal governance structure put in place by an organization to ensure adherence to laws, regulations, and standards concerning its data. This process involves identifying the applicable governance for data protection, security, storage, and other activities, and establishing policies to meet these requirements.
Data compliance is not just about following regulations set forth by corporate governance, industry organizations, and governments. It also involves ensuring that sensitive data is organized and managed in a way that enables organizations to meet legal, regulatory, and operational data requirements. This involves setting up safeguards to ensure data privacy, maintain data integrity and availability, and to avert any misuse of data.
The Benefits of Data Compliance
Data compliance offers numerous benefits to organizations. One of the primary benefits is the ability to track and record all access requests across databases and files, thereby meeting stringent data compliance requirements. This tracking capability is crucial in maintaining a secure data environment and ensuring that only authorized individuals have access to sensitive information.
The implementation of data compliance measures also protects data without any impact on the user experience. This means that while the organization is taking steps to secure its data, these measures do not interfere with the day-to-day operations of the organization or the user’s interaction with the system.
Encrypting confidential information, a crucial element of data compliance, offers a secure refuge, making the data unreadable even when exfiltrated. This is a crucial benefit as it provides an additional layer of security, ensuring that even in the event of a data breach, the stolen data cannot be accessed or misused.
Moreover, data compliance helps organizations establish controls to protect data privacy, integrity, and availability, and to prevent data misuse. It also ensures that organizations and their systems meet legal, regulatory, and operational data requirements.
Why Data Compliance is Important
Data compliance is crucial for several reasons. First and foremost, it ensures that sensitive data is protected from loss, theft, and misuse. This is particularly important in today’s digital age, where data breaches and cyberattacks are becoming increasingly common.
Data compliance also helps organizations comply with laws, regulations, and standards around their data, thereby avoiding legal and financial penalties. Non-compliance can result in hefty fines and damage to the organization’s reputation, which can have long-term impacts on the business.
Data compliance is also important because it enables organizations to track data usage across all data types and data sources. Advanced machine learning can be used to analyze access records and detect variations in access times, locations, and data elements. This helps identify and block compromised accounts from accessing data before they become a data privacy regulation violation.
Data Compliance Regulations
There are several key data compliance regulations that organizations need to be aware of. These regulations are designed to protect the privacy and security of data, and non-compliance can result in significant penalties.
- General Data Protection Regulation (GDPR): This is a regulation in EU law on data protection and privacy in the European Union and the European Economic Area. It also addresses the transfer of personal data outside the EU and EEA areas. The GDPR gives individuals control over their personal data and simplifies the regulatory environment for international business.
- Health Insurance Portability and Accountability Act (HIPAA): This U.S. law sets the standard for sensitive patient data protection. Companies that deal with protected health information (PHI) must have physical, network, and process security measures in place and follow them to ensure HIPAA Compliance.
- Payment Card Industry Data Security Standard (PCI DSS): This is an information security standard for organizations that handle branded credit cards from the major card schemes. The PCI Standard is mandated by the card brands and administered by the Payment Card Industry Security Standards Council.
- California Consumer Privacy Act (CCPA): This is a state statute intended to enhance privacy rights and consumer protection for residents of California, United States. The CCPA is the first law of its kind in the United States that gives consumers control over their personal information and how it is used.
- Personal Information Protection and Electronic Documents Act (PIPEDA): This is a Canadian law relating to data privacy. It governs how private sector organizations collect, use and disclose personal information in the course of commercial business.
Data compliance has several use cases across various sectors. One of the primary use cases is in maintaining data compliance with regulatory, legal, and data governance mandates. This requires knowing who has access to what data and to what extent. Tracking data utilization in the cloud can be challenging, but data compliance measures can help overcome this challenge.
Another use case is in ensuring data privacy. Data compliance measures can enable data privacy by tracking data usage across all data types and data sources. Advanced machine learning can be used to analyze access records and detect variations in access times, locations, and data elements. This can help identify and block compromised accounts from accessing data before they become a data privacy regulation violation.
Data compliance is a crucial aspect of data governance. It ensures that organizations adhere to laws, regulations, and standards concerning their data, thereby protecting sensitive data from loss, theft, and misuse. It also helps organizations track and record all access requests across databases and files, thereby meeting stringent data compliance requirements.