Data Compliance & Digital Transformation

When undergoing a transition to a more agile and digitally-driven business model, there is one important rule to always remember – with more data comes more responsibility.

Within a short time span, digital transformation, having been accelerated by the ongoing effects of unprecedented global events of 2020-2023, has revolutionized the way businesses operate in the modern world.

This shift has enabled organizations to leverage digital technology to become more agile and competitive and overcome the immense challenges posed by the current economic climate.

While the digital transformation of businesses is making them more efficient and competitive, It also carries a greater risk of data security – and with increased use of technology comes a new set of challenges regarding data integrity and compliance.

Organizations are increasingly reliant on data to drive their operations and decision-making processes, and as a result, data has evolved into a valuable asset that must be safeguarded against threats such as cyber-attacks, data breaches, and unauthorized access.

In order to ensure that data remains compliant and secure, businesses must take appropriate measures to protect their data and ensure its integrity. Organizations are also required to comply with applicable laws and regulations related to data security and privacy.

The Impact of Digital Transformation on Data Security and Compliance

Digital transformation has brought about a significant shift in the way businesses handle data. More than ever before, organizations now collect, store, and analyze massive amounts of data from a variety of sources.

Cloud computing, the internet of things (IoT), artificial intelligence (AI), and other digital technologies have resulted in data proliferation, making it more difficult to manage and secure.

As a result, the risk of cyber-attacks is now one of the most difficult challenges in ensuring data security and integrity. Organizations are increasingly being targeted by cybercriminals in order to steal sensitive data such as financial information, trade secrets, and personal information.

A data breach can have devastating consequences, including loss of reputation, financial loss, and legal liability.

Another issue is the lack of standardized data compliance procedures. Different regions and industries have their own set of rules and regulations, making it difficult for businesses to ensure compliance with all applicable laws.

Key Differences Between Data Security and Data Compliance

In the world of data and information systems, security and compliance are two related - but distinct concepts.

Security refers to the policies and procedures put in place to safeguard data and information systems against unauthorized access, breaches, and other security threats.

Compliance, on the other hand, refers to the process of ensuring that a company follows all relevant data protection and information security laws, regulations, and industry standards.

While security and compliance are separate concepts, they are inextricably linked and frequently inform and influence one another.

A company that implements strong security measures, such as access controls and encryption, is more likely to comply with applicable laws and regulations.

Similarly, a company that follows data protection laws and regulations is more likely to have strong security measures in place.

Compliance requirements frequently tend to drive businesses to implement new security measures and technologies.

The EU's General Data Protection Regulation (GDPR), for example, requires businesses to implement stringent data protection safeguards, such as data encryption and breach notification procedures.

Businesses must implement these security measures to comply with GDPR, which can improve their overall security posture and legal capability to do business in certain regions.

Ensuring Data Compliance In Digital Transformation

As businesses undergo digital transformation, they are generating more data than ever before. With the increased threat of cyber attacks and the changing landscape of data regulations, it is more important than ever for businesses to ensure that they are collecting, storing, and processing data in a compliant and secure manner.

In this section, several key steps will be discussed regarding the initiation of safely managing data in the digital transformation era.

Conduct a Data Audit

Before you can ensure data compliance, you must first have a thorough understanding of the data your company collects, processes, and stores - and what the data is used for.

A data audit will enable you to identify potential risks, ensure that you have the necessary consent and permissions, and determine whether you are in compliance with relevant regulations and laws.

Implement Data Protection Measures

Once you have a clear understanding of your data landscape, it is critical to put safeguards in place to protect that data. This includes implementing access controls, encrypting data where necessary, and ensuring that all data is securely stored.

To ensure that your security measures are effective, you should also consider implementing a data breach response plan and conducting regular vulnerability assessments.

Develop Data Policies and Procedures

It is critical to develop and maintain up-to-date data policies and procedures to ensure that your company complies with relevant data regulations. Data retention, access controls, and data handling procedures should all be covered.

It is also critical to provide regular training and awareness sessions to employees to ensure that they understand their responsibilities when dealing with sensitive data.

Appoint a Data Protection Officer

If your company handles a large amount of personal data, you may need to appoint a Data Protection Officer (DPO) to ensure compliance with applicable regulations.

The DPO should be knowledgeable about data protection laws and be able to advise and guide senior management and staff.

Regularly Review and Update Your Compliance Program

Finally, it is critical to review and update your compliance program on a regular basis to ensure that it remains effective and current with changes in regulations and business processes.

This should include performing regular risk assessments and ensuring that your compliance measures are in line with your business goals.

Understanding Data Regulations

Another important step in ensuring data compliance is to understand the regulations that apply to your business. When undergoing digital transformation, businesses should keep several compliance considerations in mind.

One of the most important is GDPR, which governs the processing of individuals' personal data within the European Union (EU). Although only a requirement in the EU, GDPR is often considered the gold standard for data compliance regulations

The GDPR arguably represents the closest thing we have to an existing global adequacy standard given it has become the measuring stick or model for other regulations. -Source

Businesses must ensure that personal data is collected, stored, and processed in accordance with GDPR requirements, which include obtaining consent from individuals, implementing appropriate security measures, and providing individuals with the right to access and delete their data.

Businesses operating in the United States may also be obligated to comply with regulations such as the California Consumer Privacy Act (CCPA) and the recently passed California Privacy Rights Act, in addition to GDPR (CPRA).

These regulations give individuals more control over their personal data, while also requiring businesses to be open about their data collection and processing practices.

Other regulations that businesses should be aware of are the Can-Spam Act, which governs commercial email communications, and the Payment Card Industry Data Security Standard (PCI DSS), which governs credit card payment processing.

Businesses can ensure that they are collecting and processing data in a legally compliant manner throughout digital transformation efforts by understanding and adhering to these regulations.

Implementing a Data Governance Framework

Putting in place a data governance framework is a critical step toward ensuring data compliance during digital transformation (and beyond).

A data governance framework is a collection of policies, procedures, and standards for managing and safeguarding data throughout its lifecycle. It ensures that data is correct, complete, consistent, and secure, as well as that it is used in accordance with applicable laws and regulations.

A well-designed data governance framework can assist businesses in streamlining data operations, lowering data-related risks, and improving decision-making. It can also assist businesses in identifying and mitigating compliance gaps, as well as ensuring that best practices for data management are followed.

Furthermore, a data governance framework can assist businesses in keeping up with changing regulations and ensuring that their data practices are compliant with evolving requirements.

Implementing a data governance framework is critical for businesses to effectively manage their data and ensure compliance during the digital transformation process.

The Role of Software Security In Data Compliance

Businesses that prioritize software security are more likely to be successful in ensuring data compliance and protecting their data and information systems from potential security threats. It is important to be aware of the more common forms of vulnerabilities and attacks that can be used to exploit a system and to have a comprehensive security plan in place.

In this section, a list of common software security exploits and attack vectors are listed below:

Phishing attacks: These attacks use fake emails or websites to trick users into providing sensitive information, such as login credentials or credit card details.
Credential theft: This type of attack involves stealing user login credentials, often through the use of malware or phishing techniques.
API threats: Application Programming Interfaces (APIs) can be targeted by attackers to gain access to sensitive data or execute unauthorized actions on a system.
Ransomware: This is a type of malware that encrypts a victim's data and demands a ransom payment in exchange for the decryption key.
Cookie theft: Cookies are small pieces of data that are stored on a user's device by websites. Attackers can use various techniques to steal these cookies and gain unauthorized access to the user's account.
Malicious scripts: These are scripts or code snippets that are injected into a website or application to execute unauthorized actions, such as stealing data or installing malware.
Cloud service attacks: These attacks target cloud-based services and infrastructure, often through the use of vulnerabilities or misconfigurations in the cloud environment.
Credential re-use: This type of attack involves using stolen login credentials from one service to gain access to another service where the same credentials have been used.

These are just a few common software security attack vectors. New attack vectors will emerge as technology and security threats evolve, making it critical for businesses to remain vigilant and implement strong security measures to protect their data and information systems.

Ensuring Data Security in Digital Transformation

Data security is a critical task for businesses during digital transformation. Regardless of industry, location, or product & service offering, organizations worldwide face new security risks as they adopt new technologies, collect more data, and shift their operations to the cloud.

Cybercriminals are constantly on the lookout for vulnerabilities to exploit, and data breaches can have serious ramifications.

In this section, steps businesses should implement regarding security measures to ensure data security during digital transformation will be discussed.

Conduct a Risk Assessment

Businesses should begin by conducting a risk assessment to identify potential threats and vulnerabilities in order to ensure data security during a digital transformation. This includes evaluating the security of existing systems and applications and identifying any new risks that may arise as a result of the digital transformation.

Implement Strong Access Controls

Strong access controls are critical for ensuring data security during digital transformation. This includes restricting data access to only those who need it for their job, implementing multi-factor authentication, and monitoring access logs for any suspicious activity.

Encrypt Data in Transit and at Rest

Encryption is a critical component of data security because it protects data both in transit and at rest. Businesses should implement encryption protocols to ensure that all data transmitted over networks and stored on servers or other storage devices are encrypted.

Conduct Regular Vulnerability Scans and Penetration Testing

Regular vulnerability scanning and penetration testing are essential for identifying potential security flaws and vulnerabilities in systems and applications. Businesses can identify and address vulnerabilities before they are exploited by cyber attackers by running these tests on a regular basis.

Regularly Monitor and Test Security Controls

Businesses should monitor and test their systems and applications on a regular basis to ensure that security controls are effective. This includes performing regular vulnerability assessments and penetration testing to identify potential weaknesses, as well as patching any vulnerabilities discovered.

Train Employees on Security Best Practices

Finally, businesses should ensure that their employees are trained in security best practices and understand their role in data security. This includes training employees on how to recognize and respond to potential security threats, as well as providing regular security policy and procedure training.

Implementing a Cyber-Security Policy

An integral plan in ensuring data security during a digital transformation is the implementation of a cybersecurity policy. Cybersecurity policies can be integrated seamlessly into existing business IT usage policies, and can offer a framework on which to build a more robust infrastructure.

Implementing a cybersecurity policy during a digital transformation involves establishing a set of guidelines and procedures to ensure that data and information systems are protected from potential security threats.

The policy should establish clear protocols for storing data in secure locations, including on-premises and cloud-based systems, in terms of data storage. It should also state who has access to the data and under what conditions.

Data encryption is another critical component of a cybersecurity policy, as it helps protect data from unauthorized access. The policy should specify when and how data should be encrypted, including during transmission and when stored on devices or servers.

Data retention and destruction are also important considerations, as businesses must retain data for a specific period of time in order to comply with legal requirements while also ensuring that data is securely destroyed when it is no longer required.

A cybersecurity policy should establish procedures for data retention and destruction, including specifying how long data should be retained and how it should be securely destroyed.

Putting it all Together

Data compliance and data security are critical aspects of any digitally transformed business.

Implementing a strong data governance framework and cybersecurity policy can assist businesses in ensuring that they are in compliance with relevant regulations and that their data is secure.

Businesses can identify potential compliance and security risks and implement appropriate mitigation measures by understanding the data lifecycle.

Prioritizing software security can also help businesses keep up with evolving security threats and compliance requirements.

Finally, by putting data compliance and security first, businesses can ensure the integrity, availability, and confidentiality of their data.

As an industry leader serving customers in regions across the globe, Stormboard takes data security and compliance very seriously by providing best-in-class.

We understand that your intellectual property and sensitive data must always be secure, and liaise closely with your IT department to ensure data compliance and security.

Stormboard strongly believes in security, transparency, and accountability. Everything from our user agreement to our privacy policy is available here and our experts are always available to answer any questions you may have about our own policies, compliances, and how we can help your organization build your own data compliance and security framework.

Speak with an Expert now

About the author:

A programmer by trade, Nick Saraev is a freelance writer and entrepreneur with a penchant for helping people excel in their careers. He's been featured on Popular Mechanics & Apple News, and has founded several successful companies in e-commerce, marketing, and artificial intelligence. When he's not working on his latest project, you can find him hiking or painting.