Firms consider data protection, compliance growing concern, EY survey finds

 

The majority of global firms are increasingly concerned about data protection and data privacy compliance, an EY survey reveals.

 

Seventy-eight percent of firms surveyed considered data protection and data privacy compliance a growing concern and the majority are unprepared for EU General Data Protection Regulation (GDPR) compliance.

 

This is according to the third biennial Ernst & Young (EY) Global Forensic Data Analytics Survey, which examined the responses of 745 executives from 19 countries and analysed the legal, compliance and fraud risks that global companies face, and the use of forensic data analytics (FDA) to manage them.

 

With three months until the GDPR comes into force, only 33 percent of respondents say they have a plan in place to comply with the EU legislation.

 

While the average response of those in Europe is more positive, with 60 percent indicating they have a compliance plan in place, there is still much more work to be done in other markets where significantly fewer companies indicated readiness for GDPR compliance, including Africa and the Middle East (27 percent), the Americas (13 percent) and Asia-Pacific (12 percent).

 

Andrew Gordon, EY global fraud investigation & dispute services leader, says:

 

“The pace of regulatory change continues to accelerate and the introduction of data protection and data privacy laws, such as GDPR, are major compliance challenges for global organisations. But businesses that adopt FDA technologies can achieve significant advantages, benefitting from more effective risk management and increased business transparency across all of their operations.”

 

Linus Osita Okeke, EY Nigeria forensic/fraud investigation & dispute services leader, says: “Businesses in Nigeria need to take over more than a passing interest in GDPR because of the significant impact of this piece of EU legislation on businesses outside of the EU.”

 

The survey found that 42 percent of businesses believe that data protection and data privacy regulations have a significant impact on the design or use of FDA. Thirteen percent of respondents say they currently use FDA to achieve GDPR compliance, with more than half (52 percent) of the respondents indicating that they are currently in the process of analysing exactly the FDA tools that would assist them in achieving compliance.

 

Overall, the report highlights how increased adoption of, and spending on advanced FDA technologies, needs to be matched with greater investment in skilled resources.

 

Of the respondents surveyed, only 13 percent feel that their organisation has the right technical skills in FDA, and only 12 percent believe they have the right data analytics/data science skills.

 

Gordon says: “FDA is not just about technology, but about the people who manage that technology and how they use it to manage risks. While it is encouraging to see that investment in advanced FDA is increasing, companies need to hire the right talent and invest in core skills such as domain knowledge and data analytics in order to be successful in managing their risk profile.”

 

EY is a global leader in assurance, tax, transaction and advisory services.

 

 

ODINAKA ANUDU