Data governance–part of an effective compliance program
THOSE involved in compliance management are aware that an effective compliance program is comprised of many moving parts. Critical data is coming in from the variety of tools, documents, systems and technologies needed to run operations. As such, businesses can find themselves overwhelmed when trying to gain a complete, accurate picture of their risk profile at any given time.
Therefore, strong data governance is essential in facilitating adherence to compliance requirements without slowing down business. Strong data governance aids in the efficient management of key compliance areas, such as data privacy protection, cybersecurity, anti-corruption, compliance with labor and environmental laws, to name a few only. A unified system for aggregating critical business data enables organizations to gain an accurate view of their compliance posture in real time and drive business efficiency.
Data overload—there is no doubt, compliance programs must collect and analyze an enormous amount of data, which drives the importance of data governance. Important information is spread across the training, case management, risk assessment and management, policy management, gifts and entertainment, and third-party due diligence systems. Compliance officers need to know they’re working with a multiple sources of information that gives them the most complete, accurate picture at any given moment.
Data governance becomes more important the more systems and applications a compliance function uses. Compliance officers want systems that store data in a single repository with standardized data formats because strong data governance ensures accurate reports. From there, compliance officers can make accurate decisions based on what the data tells them.
Greasing the compliance wheels—Compliance officers are often stuck searching for critical data and don’t have a connected approach to the technology that supports their programs and processes. How can data governance fix this problem? Automating a compliance program’s many tasks helps to create a unified operations environment. In this paradigm, the compliance function goes beyond its tasks of third-party due diligence and training. It elevates the function by using a unified system to automate the process of due diligence, as well as sending alerts for any needed training.
Alternately, the due diligence and risk assessment tools communicate and work together to spot third parties at high risk for violations so that compliance officers can take a closer look. These are just two of many examples of how data integration and task automation vastly enhance compliance efforts.
Organizations can create a unified system either by integrating a group of solutions or by deploying one compliance tool that covers all the bases. But the key to success lies in setting up the system in a way that ensures strong data governance— the ability to gather the needed data and analyze and apply it in ways that keep the organization compliant.
Once the data exists, compliance professionals need to groom and aggregate it so they can review this information in the context of compliance and risk. That is to say, seemingly unrelated chunks of data will need to come together and be examined within broader trends of compliance activity.
On the human side, employees and third parties must know a reportable event when they see it and then report it. They need training and ongoing support to fulfill that duty and do so in a timely fashion. This adds to the body of data that can be used both right now to address immediate concerns and in the future as to look back on for reference.
Compliance done right—Though reasons and regulations may vary, the underlying foundation of the elements necessary for a solid compliance program is the same regardless of company size or industry. This involves masses of data usually found in disparate systems. No matter what your reasons are for starting or upgrading your compliance program, its goal should be strong data governance enabled by a single repository of all compliance-related data, unity and automation.
The complexity of compliance management and understanding that the safe journey into data protection needs automation inspired me to create a cooperation with Straits Interactive, a company in Singapore that has developed the online Data Protection Management System, to equip professionals, managers and executives with the competencies to perform their jobs in data protection. The DPMS is not only assisting in the compliance with the Philippine Data Privacy Act, but also with the European Union’s General Data Protection Regulation and beyond.
Comments are welcome—please contact me at Schumacher@eitsc.com