With the right efforts, investment and leadership support, the confluence of data and technology will better address companies’ needs to manage legal, compliance and fraud risks.
Data protection and data privacy
One of the most important roles for FDA is in helping companies to manage data protection and data privacy compliance risks and to understand where data is located, who has access to it and how to respond in the event of a policy violation.
This is particularly topical, as the General Data Protection Regulation (GDPR) comes into effect across the EU on 25 May 2018. It applies to all companies – regardless of location – that process the personal data of EU residents, and therefore has immense extraterritorial reach. This message doesn’t appear to have been widely taken on board yet: while 60% of European respondents said they have a GDPR compliance plan in place, only 13% of those in the Americas and 12% in Asia-Pacific do. Overall, the survey found that too many companies are still unprepared for the GDPR.
The survey also revealed that 42% of businesses believe that data protection and data privacy regulations have a significant impact on the design and use of FDA. However, when asked if they are using FDA to assist in their GDPR compliance efforts, 35% of the respondents said no, 52% said that it was still being assessed and only 13% said yes.
Realizing the full potential of FDA
With the right efforts, investment and leadership support, the confluence of data and technology will better address companies’ needs to manage legal, compliance and fraud risks. Companies can also extend FDA’s benefits to additional business advantages, including predicting potential misconduct, increasing business transparency and improving operational efficiency. When the full potential of FDA is realized, it will ultimately help the risk function to become an enabler, continuing to protect the business while also offering insights that can inform business opportunities and strategy.
Summary
EY’s Global Forensic Data Analytics Survey reveals how companies are using advanced data analytics technologies to transform their risk functions and discusses the challenges they face in implementing it effectively.