How robust testing drives data compliance 

Soniya Bopache at Arctera explains why testing the robustness of an organisation’s data protection infrastructure is vital to protect against evolving threats

 

Rapid technology advancements have made compliance impermanent. With that, these new technologies are presenting lawmakers with ever-evolving challenges, and compliance regulations are changing at an unprecedented speed.

 

This quickened pace of legislative change means that for businesses, it has never been more important to ensure they have the required processes in place to ensure they are compliant. Failure to do so can be incredibly costly. 

 

Regulated industries are particularly impacted by the ever-changing regulatory requirements. Reports show that data breaches cost the global healthcare industry an average of $10 million per breach in 2023, while in the financial services sector, the average cost stood at over $6 million per breach.

 

The potential repercussions span far beyond being purely the healthcare and financial sectors, however, as customer trust, brand reputation and compliance fines are also vital considerations that can be damaging to non-regulated organisations.

 

Cyber-attackers will target everyone they can, so there is no margin for complacency. Implementing a robust testing framework needs to be an urgent priority for organisations.

 

Navigating risk: rigorous internal compliance

With cyber-threats becoming increasingly sophisticated and cyber-crime becoming more organised, businesses need to raise their game. Too many organisations wait until the worst-case scenario plays out to review their policies. But, of course, by then, it’s too late to do anything if the solutions they have in place are found wanting.

 

Regular testing to identify vulnerabilities and possibilities for breaches enables businesses to take an always-on approach of preparing for the inevitable but unpredictable cyber-attacks that will hit them.

 

This has to go far beyond simply checking boxes or conducting annual audits. It needs to be a continuous and proactive process designed to ensure that an organisation’s data handling practices consistently meet all relevant internal policies, industry standards, and external regulations. This needs to include internal audits and risk assessments in order to identify vulnerabilities before they are exposed by cyber-attackers.

 

Prioritising risks based on their likelihood and impact is an effective starting point, and helps to mitigate the damage that a data breach would cause. If businesses can first understand where they are most vulnerable, they have a useful platform from which to build a testing framework. 

 

Data accuracy and integrity at every level

Establishing clear roles for data stewards is pivotal for delivering a robust and regular testing framework. It also helps organisations to ensure data accuracy and integrity throughout an entire data lifecycle.

 

By entrusting these key personnel with the critical responsibility of implementing and overseeing a robust and regular testing framework, organisations gain invaluable assurance regarding the accuracy and integrity of their data. This systematic approach empowers confident, data-driven decisions and ensures that all operational and strategic plans are founded on reliable, high-quality data.

 

Testing: a business-critical discipline

Unfortunately, too few organisations today are taking the time to adequately test and revisit their cyber-security compliance strategies. It’s understandable, especially in the current economic climate, given that testing can be resource intensive, without any immediate ROI. But the long-term cost can be far greater if an organisation is unexpectedly fined due to poor compliance. 

 

Those that do test often build it into their annual plans. But, testing annually is far too irregular to defend against constantly evolving ransomware threats. Instead, audits need to be multi-faceted and take place on a much more frequent basis.

 

These regular audits should evaluate the effectiveness of a risk-management framework, ethical guidelines, and data governance practices. By identifying areas of potential non-compliance, companies can take proactive measures to address issues before they escalate.

 

But how? Collaboration with regulatory bodies and industry peers is essential for navigating compliance challenges. Engaging with regulators can offer valuable insights into emerging regulations and best practices. Additionally, participating in industry forums and working groups focused on compliance allows organisations to exchange knowledge and learn from industry peers, fostering a collaborative environment for tackling shared challenges. 

 

Regulations are evolving, data is multiplying, and the risks of mismanagement are higher than ever. Organisations that conduct regular audits and have a demonstratable, robust testing framework are best placed to collaborate with regulators and industry forums and lead the way in delivering a culture of compliance. 

 

AI can be a solution to compliance challenges 

Artificial intelligence (AI) can be a powerful ally in compliance testing. AI-driven compliance tools can analyse vast amounts of data, detect anomalies, and provide insights that human analysts might overlook.

 

Predictive analytics can be leveraged to anticipate compliance risks based on historical patterns, allowing for proactive risk mitigation. Streamlining reporting processes with AI tools can also facilitate the efficient generation of compliance documentation and reports. 

 

Organisations need to consider how they can most effectively deploy AI solutions within their compliance strategy to improve accuracy and efficiency. Again, testing is a key component to delivering this and assessing its effectiveness. Fostering ethical practices through regular training enables organisations to make compliance a shared responsibility.

 

By leveraging AI technologies, organisations can streamline compliance monitoring, identify potential risks in real-time, and take action when an anomaly is detected.

 

Why continuous testing is a non-negotiable 

The demand for robust testing processes has never been greater, especially when it comes to data compliance. Organisations must embrace the imperative of implementing regular testing, cultivating a strong culture of compliance across their businesses, and embedding shared accountability for data protection across all levels. 

 

Doing so has never been more crucial to navigate complex legislative changes and severe financial threats. This is because the nature of compliance has fundamentally changed. Gone are the days of merely drafting a policy and conducting annual audits.  

 

Instead, compliance today has become a dynamic, ongoing commitment. While such persistence might seem daunting, this is precisely where having a culture that prioritises compliance; leaning into the capabilities of AI can make this achievable. 

 

True compliance in today’s world demands active, continuous engagement. Businesses that recognise this will be best placed to avoid the significant financial and operational impacts that can be felt, and most resilient as the landscape evolves. 

 

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Soniya Bopache is VP and GM, Data Compliance at Arctera

 

Main image courtesy of iStockPhoto.com and MTStock Studio