The latest rules from the US Security and Exchange Commission (SEC) show just how much things have changed for organizations defending themselves against cyberattacks. While businesses have historically underestimated their cybersecurity risks, today it’s seen as a non-negotiable priority, as neglecting to adequately protect sensitive data can damage operations, reputations, and bottom lines.
With the goal of enhancing accounting and transparency, the SEC’s rules now require regulated companies to disclose cybersecurity incidents within four business days. They must also periodically disclose the organization's data governance, risk, and compliance (GRC) management and strategies. More specifically, the SEC requires companies to define their process for “assessing, identifying, and managing materials risks from cybersecurity threats.” This is a significant departure from previous regulations, which didn’t require a written record of a business’s cybersecurity program.
Enterprises now depend on data for unprecedented purposes, collecting, analyzing, and using it for everything from decision-making to operations and customer engagement. This growing data reliance, combined with increased adoption of AI and machine learning (ML), has made data governance more critical than ever.
Data governance is the processes, policies, standards, and metrics companies use to ensure information or data is effectively and efficiently managed while helping them achieve their business goals. While it’s crucial for successful digital transformations, data governance does come with challenges and risks, including:
And that doesn’t take into account the sheer volume and complexity of data organizations must manage, with many finding it nearly impossible to keep track of what data they have, where it is, and how it’s being used. A well-crafted governance policy makes it easier, eliminating issues like inconsistent data quality, data silos, and data integration issues that impede decision-making and operational efficiency.
While the conversation is typically framed as one about governance, risk, and compliance, data governance should not be seen as merely a way to manage risk. It’s also about unlocking data’s value and ensuring it’s accurate, accessible, consistent, and secure. Put another way, it’s a way for businesses to use their data as the strategic asset it is.
Data governance policies have typically relied on a central team or department using manual processes for data auditing, quality checks, and compliance monitoring. And they tend to be reactive rather than proactive methods.
Today, the focus has switched to a more versatile and agile approach that considers the complexities of a modern data environment. These novel policies use a tailored, community-centric process where everyone, not just the IT team, is involved with data governance. By encouraging insight and input from all organizational levels, companies create a more flexible, scalable, and effective policy for managing data. Features generally include:
Adopting an advanced data governance framework can be challenging. Yet it can also yield significant benefits, fostering ethical data sharing, facilitating access to top-tier data, and ensuring responsible data usage.
Just as sophisticated railway networks rely on meticulous planning, precise maneuvering, and sophisticated technologies for the safe and timely transit of trains, data governance helps organizations manage extensive data flows, directing each “train” of information to its proper destination while ensuring data security and compliance.
And in the same way rail traffic control systems ensure trains leave and arrive safely on designated tracks, GRC software provides oversight and direction that guarantees each piece of data moves from its origin to its endpoint efficiently and without disruption.
In today’s data-driven landscape, GRC is a central framework crucial for most organization’s operational integrity and success. It’s an integrated strategy that prioritizes:
This trio of components is fundamental in aligning organizational objectives with operational tactics, ensuring profitability, trustworthiness, and long-term sustainability.
How important is it for companies to develop solid GRC practices? Millions upon millions of data records are exposed worldwide through data breaches each year. The consequences of non-compliance with strict data security regulations can be catastrophic for businesses. In other words, there’s never been a more pressing need for advanced systems to manage, safeguard, and regulate data.
GRC cybersecurity focuses on the protection of digital information and assets from cyber threats, ensuring data’s confidentiality, integrity, and availability. It’s key to successfully navigating the complex web of cyber threats while adhering to an ever-growing body of data protection laws and regulations.
By implementing a GRC platform, businesses can break down departmental data silos so that risk management and compliance activities align with and drive business strategies. Akin to a central nervous system for GRC processes, it provides an integrated environment for organizing, managing, and analyzing GRC-related activities. This centralized approach streamlines GRC processes and provides actionable insights, leading to more informed decision-making.
A GRC platform also facilitates regulatory compliance by automating and standardizing processes like audits, compliance checks, and risk assessments. And it helps maintain a consistent approach to GRC across the organization, something that’s essential for complying with regulations that vary significantly across regions and industries.
GRC is now an indispensable factor in how modern companies operate. In a world where data is both a powerful asset and a potential liability, GRC frameworks, bolstered by strong GRC cybersecurity measures and empowered by advanced GRC platforms, are essential for any company to thrive. They enable organizations to turn governance, risk management, and compliance challenges into opportunities for growth, stability, and competitive advantage.
When data governance fails or is poorly implemented, the consequences can be swift and severe. While most companies know good data governance is critical, many struggle to effectively implement it. Knowing why so many governance strategies miss their mark can help an organization avoid common pitfalls.
Addressing these challenges while building a data governance policy ensures companies develop more effective, sustainable, and adaptable GRC strategies that align with their business goals.
Every organizational strategy comes with benefits and challenges, and it’s no different with GRC. Two significant hurdles companies face are capturing and securely storing data. In the age of big data, the volume, velocity, and variety of data organizations must manage have grown rapidly. While valuable on multiple levels, there’s a distinct risk of non-compliance and legal issues if this vast amount of data is incorrectly handled.
Leveraging big data analytics for strategic insights while maintaining compliance and managing risks is a complex task, with privacy and security oversights posing significant compliance risks. To overcome these challenges, organizations can adopt several strategies:
It’s estimated that over 90% of global businesses use the cloud for data storage, taking advantage of its cost benefits and scalability. As they have embraced the technology, the focus on data privacy and security has intensified.
Risks associated with cloud data storage range from data breaches to unauthorized access. To ensure data integrity, companies should use a multi-faceted approach to GRC by:
GRC strategies are comprehensive plans that:
Successful GRC strategies are those that emphasize data quality and ensure data is accurate, consistent, and reliable. To succeed, companies must set stringent data quality policies and employ processes that maintain data integrity throughout its lifecycle. Risk management tasks that identify, assess, and mitigate data risks are critical components of these strategies, as are compliance efforts that align with internal and external policies and regulatory requirements.
Innovative data governance strategies companies are now using include:
These and other pioneering strategies help companies control data better and use it more effectively in their digital transformations.
Good data governance carefully balances strategy, technology, and people management. These best practices can help ensure your data is secure, compliant, and accessible, making it a powerful tool for insightful analytics and strategic development.
By implementing these best practices, companies can create robust frameworks for managing their data. Clear policies and standards provide a strong foundation while ensuring data quality and promoting data literacy enhance the effectiveness of data use. Advanced access control policies and automation contribute to data security and efficiency, while regular monitoring and auditing guarantee continuous improvement and compliance. And encouraging company-wide collaboration ensures a holistic approach to data governance. When combined, these practices form a comprehensive strategy for secure, compliant, and accessible data management.
Recalibrating a GRC strategy is no easy task, but it’s what organizations are being asked to do yet again. Understanding how emerging threats put your company at risk and learning how to build a more resilient cybersecurity strategy is an ongoing process that requires adaptability, foresight, and a deep understanding of the internal and external landscapes of business operations.
Emerging and increasingly sophisticated data security threats necessitate an agile and precise approach to GRC. Companies must truly understand the nature of the threats they face, be they tech-related, like new forms of malware or cyber-attacks, or regulatory, like the introduction of new data protection laws. They must then integrate this knowledge into a broad, encompassing, and proactive GRC framework by:
Technology, of course, is essential to a resilient GRC strategy. Leveraging advanced tools, including AI and ML, for predictive analytics provides early warnings of potential security breaches and allows for quick response. Strong data encryption and robust access controls further fortify sensitive information’s security.
Clearly, technology alone isn't the solution. The human factor also plays a critical GRC role. Fostering a culture of security awareness and compliance is vital. Regular training sessions, simulations, and drills instill a vigilant and responsible mindset that transforms employees into active participants in the company’s cybersecurity efforts.
Last but not least is inspiring collaboration within and outside the organization. Internally, it’s essential to break down silos and encourage open communication between departments to ensure a unified GRC approach. Externally, companies can partner with other businesses, regulatory bodies, and cybersecurity experts to share valuable insights and resources.
GRC is indeed one of the most delicate balancing acts companies must now engage in. It requires constant vigilance, adaptation, and integration of various elements. Governance, risk management, and compliance must work as one, protecting the organization and its data in a world where cybersecurity threats are an ever-present challenge.
Ultimately, your organization’s data security and compliance are only as strong as the elements and people that support them. By investing in proven solutions, you ensure your data remains secure from start to finish, and you’re able to keep pace with an ever-changing data governance landscape.
At Veritas, we understand data governance is complicated. That’s why we offer an integrated portfolio of compliance and governance solutions that consolidate intelligence across data sources to surface relevant information, deliver actionable insights, and reduce the risk of costly regulatory fines. We’re proud to be named a Leader in the Gartner Magic Quadrant for Enterprise Information Archiving, as it recognizes our commitment to delivering market-leading, cloud-centric solutions that address data and regulatory complexity for our customers.
Veritas offers an integrated portfolio of GRC solutions that help companies consolidate intelligence across data sources to surface relevant information, deliver actionable insights, and reduce the risk of non-compliance fines. Contact us today to see how we can help you take a holistic approach to mitigating cybersecurity risk and remaining compliant.
Learn more about how Veritas is committed to safeguarding your data at our Veritas Trust Center.
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