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