Data pro­tec­tion and data pri­vacy chal­lenges on the rise for cor­po­rate In­dia: EY

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• 60% of In­dian re­spon­dents are still not fa­mil­iar with EU’s Gen­eral Data Pro­tec­tion Reg­u­la­tion

• 46% are in­creas­ingly ap­pre­hen­sive about cy­ber breach and in­sider threats

• In­creased in­vest­ments ex­pected in Ar­ti­fi­cial In­tel­li­gence and Ro­bot­ics Process Au­to­ma­tion this year

Cor­po­rate In­dia’s jour­ney to­ward dig­i­tal trans­for­ma­tion has in­tro­duced new risks, es­pe­cially around man­ag­ing data, over the last two years states EY’s Global Foren­sic Data An­a­lyt­ics Sur­vey 2018. The sur­vey ti­tled, ‘How can you dis­rupt risk in an era of dig­i­tal trans­for­ma­tion?’ high­lighted that 70% of In­dian re­spon­dents see data pro­tec­tion and data pri­vacy com­pli­ance as in­creas­ing ar­eas of con­cern; while 46% are wor­ried about cy­ber breach and in­sider threats. The role of ad­vanced Foren­sic Data An­a­lyt­ics (FDA) and emerg­ing tech­nolo­gies will con­tinue to be piv­otal to mit­i­gate es­ca­lat­ing dig­i­tal threats. Ac­cord­ing to the In­dia find­ings, 71% had ef­fec­tively uti­lized FDA in cases of data pro­tec­tion and pri­vacy, 87% for fi­nan­cial state­ment fraud; against the global av­er­age of 73% and 77% re­spec­tively. The role of the C-suite and Board is in­stru­men­tal for the suc­cess of FDA. How­ever, 53% of In­dian sur­vey re­spon­dents high­lighted a need to im­prove man­age­ment’s aware­ness of the ben­e­fits of FDA, higher than the global av­er­age of 45%.

An­drew Gor­don, EY Global Fraud In­ves­ti­ga­tion & Dis­pute Ser­vices leader, says “The pace of reg­u­la­tory change con­tin­ues to ac­cel­er­ate and the in­tro­duc­tion of data pro­tec­tion and data pri­vacy laws, such as GDPR, are ma­jor com­pli­ance chal­lenges for global or­ga­ni­za­tions. But busi­nesses that adopt FDA tech­nolo­gies can achieve sig­nif­i­cant ad­van­tages, ben­e­fit­ting from more ef­fec­tive risk man­age­ment and in­creased busi­ness trans­parency across all of their op­er­a­tions.” Ar­pin­der Singh, Part­ner and Head – In­dia & Emerg­ing Mar­kets, Fraud In­ves­ti­ga­tion & Dis­pute Ser­vices, EY, says “Emerg­ing mar­kets, es­pe­cially In­dia are driv­ing the dig­i­tal data revo­lu­tion through rapid in­no­va­tion and adop­tion of new tech­nolo­gies. How­ever, the cur­rent busi­ness en­vi­ron­ment de­mands re­assess­ing the risk land­scape as a re­sult of new reg­u­la­tions around data pro­tec­tion and data pri­vacy, in­creased multi-ju­ris­dic­tional co-op­er­a­tion and ris­ing dig­i­tal vul­ner­a­bil­i­ties. This is an apt time for man­age­ment to main­tain the sanc­tity of data, and de­rive the true ben­e­fits of FDA by in­te­grat­ing it within their com­pli­ance pro­grams for in­creased re­turn on in­vest­ment.”

The sur­vey is con­ducted by EY’s Fraud In­ves­ti­ga­tion & Dis­pute Ser­vices prac­tice and en­cap­su­lates how dig­i­tal trans­for­ma­tion is driv­ing ad­vance­ments in FDA that can help mit­i­gate fraud and com­pli­ance risks faced by busi­nesses. The key In­dia find­ings in­clude: Lim­ited aware­ness around the use of FDA tools as a GDPR com­pli­ance aid Glob­ally, 42% of the sur­vey re­spon­dents be­lieve that data pro­tec­tion and data pri­vacy reg­u­la­tions have a sig­nif­i­cant im­pact on the de­sign and use of FDA, but most or­ga­ni­za­tions are still not us­ing it in their GDPR com­pli­ance ef­forts. In­dian re­spon­dents showed lim­ited un­der­stand­ing and readi­ness to­ward GDPR com­pli­ance; 60% are un­fa­mil­iar with the reg­u­la­tion, only 13% have a plan and less than 30% are not us­ing FDA tech­niques to sup­port GDPR com­pli­ance. 2018 will see greater in­vest­ments in emerg­ing tech­nolo­gies In­dian or­ga­ni­za­tions are geared up to adopt emerg­ing tech­nolo­gies such as Ar­ti­fi­cial In­tel­li­gence (63%), Ro­bot­ics Process Au­to­ma­tion (53%), Blockchain and Dis­trib­uted Ledgers (50%), and User Be­havioural An­a­lyt­ics (66%) this year. Th­ese would as­sist com­pa­nies in con­tin­u­ous mon­i­tor­ing, pol­icy ad­her­ence, and bol­ster busi­ness trans­parency. Th­ese tools can of­fer com­pa­nies the flex­i­bil­ity to cre­ate cus­tom­ized risk pro­grams in line with their unique risk pro­file and cul­ture. Strong gov­er­nance and ef­fec­tive col­lab­o­ra­tion is cru­cial to over­come FDA chal­lenges The use of FDA in In­dian or­ga­ni­za­tions is steadily ris­ing, with 95% stat­ing that it leads to im­proved risk as­sess­ments, and 98% as­sert­ing faster re­sponse in in­ves­ti­ga­tions. That said, cross func­tional col­lab­o­ra­tion re­mains chal­leng­ing with 63% of In­dian re­spon­dents stat­ing that only some (not all) of the risk man­age­ment func­tions col­lab­o­rate with each other on their FDA ef­forts. Strong gov­er­nance is crit­i­cal to over­come is­sues around in­te­grat­ing data sources and co-op­er­a­tion across de­part­ments.

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