Government mandates, data sharing agreements and spreadsheets sow confusion amid an avalanche of private data
Companies are inundated with data. A single bank transaction might get replicated across a hundred data repositories. Companies are constantly purchasing data from third parties to build better customer profiles. In addition, as companies consolidate through mergers and acquisitions, they acquire completely unknown datasets and data transfer agreements between business partners. In this environment, it’s no wonder that respondents’ data privacy programs scored much lower on technical maturity than on organizational maturity.
Survey Demographics and Firmographics
258 respondents completed the survey, each of whom had to meet the following minimum criteria:
- Reside in the USA
- At least “Somewhat Knowledgeable” on how data privacy and data security are managed at their current company
- Mid to senior level professionals and executives
- 500 employees or more (62.4% had over 5,000 employees)
- $25 million or more in annual revenue (69.38% had over $1 billion in annual revenue)
- Functional roles/areas had to be in IT, general management, or risk and compliance
Data privacy management overconfidence: 40% were Very or Extremely Confident in knowing exactly where sensitive data resides despite only taking inventory once a year or less, and; a mere 17% of respondents are able to access sensitive data across five common data source types.
Data privacy impacts much more than regulatory compliance: Enforcing internal data handling policies like classification and retention was cited 69% of the time. Proving compliance with business obligations like data sharing agreements was cited by 63% of respondents. About one third of respondents cited the impact on M&A due diligence (34%) and data lake hygiene (32%). About a quarter of respondents (24%) viewed data privacy as impacting the delivery of AI / ML projects.
The proliferation of data sharing agreements: In the wake of the misuse of data sharing agreements like the one between Facebook and Cambridge Analytica, enterprises seem to be more aware of such agreements. 40% of respondents had 50 or more of these data sharing agreements in place. However, respondents reported being 43 percent more confident in their ability to be compliant compared to how they perceived their partners.
Data privacy management budgets reside in IT departments: About 50% of data privacy budgets are concentrated in IT departments.
Technology leaders are increasingly being tasked with operationalizing their companies’ data privacy management program. Why? At its core, data privacy is a data issue, and privacy is an outcome of a comprehensive data protection strategy.