Here's Why Data Compliance is MUST in 2024

Data is the lifeblood of modern businesses, powering everything from marketing campaigns to financial transactions. With the advent of AI and automation tools, data protection is more critical than ever. Enter data compliance – the essential practice of protecting and keeping your data safe from prying eyes and cyber threats. In this blog, we explore why industries require compliance and governance solutions to safeguard themselves from data breaches and why it is crucial for them to adhere to compliances as part of their growth. 

Why Data Compliance? 

 

Compliance isn't just about avoiding fines; it's about building trust. By showing your customers their data is secure, you attract valuable employees and clients who value ethical data practices. Records show that:  

• GDPR violations are rising, with fines exceeding €1.1 billion by 2022. 

• Data breaches are getting more expensive, costing companies an average of $4.35 million in 2022. 

• Data protection laws are spreading globally, with almost 70% of organizations reporting benefits from adhering to privacy regulations. 

 

While implementing data compliance services and implementation incurs costs, the benefits far outweigh the risks: 

1. Average Cost: Data compliance averages around $2 million, but non-compliance prices can be 2.71 times higher. 

2. Avoiding Legal Risks: Investing in compliance helps prevent potential legal, financial, and reputational damages. 

5 Major Strategies for Data Compliance in 2024: 

 

To achieve data compliance, you can take proactive measures: 

 

1. Develop a Comprehensive Plan: Create a detailed data governance framework outlining policies and procedures. 

2. Prioritize Security: Implement encryption, multi-factor authentication, and access controls to protect sensitive data. 

3. Focus on Governance: Establish data governance practices such as cataloging, lineage, and quality management. 

4. Cloud Migration and Tech Adoption: Consider migrating to cloud platforms for scalability and adopt technologies like AI for insights. 

5. Employee Training: Invest in training to educate staff on data handling, security protocols, and compliance standards. 

 

Key Data Compliance Regulations: 

 

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Some of the regulatory frameworks that govern data compliance are: 

• GDPR (General Data Protection Regulation): Protects personal data of individuals in the EU and EEA, mandating explicit consent for data collection. 

• SOX (Sarbanes-Oxley Act): U.S. law regulating corporate governance and financial reporting, ensuring transparency and accountability. 

• CCPA (California Consumer Privacy Act): Governs personal data processing by businesses in California, granting residents rights over their data. 

• HIPAA (Health Insurance Portability and Accountability Act): Ensures privacy and security of personal health information processed by healthcare entities. 

• PCI DSS (Payment Card Industry Data Security Standard): Sets security standards for organizations handling payment card information. 

What Industries Are Doing for Data Governance in 2024: 

 

In 2024, companies are more determined to improve their Data Governance programs, with about 60% of corporate leaders prioritizing DG. This focus surpasses AI by 80% for data platforms and security practitioners. Listed below are seven essential strategies that industries are looking out to implement for their governance solutions: 

 

1. Investor Interest: Investors are increasingly interested in how companies govern their data, especially as companies seek funding for new data projects, particularly those supporting AI goals. Experts estimate that poor Data Governance can consume 20-40% of IT budgets, diverting funds from new data initiatives. 

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2. Evolution to Corporate Data Governance: Data Governance is evolving beyond managing accessibility and security to becoming a framework contributing to an organization's market integrity and economic performance. This evolution will involve input from executives to establish trustworthy data with autonomy and federated structures for business units. 

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3. Shifting Data Governance Left: Companies will prioritize a "Shift Left" Data Governance approach, implementing governance and security measures earlier, before data is stored in the cloud. This approach aims to simplify data security, improve Data Quality, and proactively identify and address data-related issues. 

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4. Comprehensive Data Governance Frameworks: DG will expand into comprehensive frameworks, detailing systems for guiding activities, organizing project data, making data decisions, and assessing progress. These frameworks include data, roles, processes, communications, metrics, and tools. 

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5. Customizing Roles and Stewardship: Companies will activate different roles and customize structures to support DG objectives. Data stewardship will involve various levels of accountability and responsibility, with other teams handling operational, tactical, business, and technical aspects. 

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6. Federated Governance Approach: As companies aim to enable business growth, they will decentralize ownership of data products. A federated approach to DG will involve aligning business units through data modelling, software documentation, and business system design. 

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7. Data Governance as a Service (DGaaS): In response to resource limitations, organizations will turn to DGaaS, enabling effective Data Governance within budget. This approach allows companies to establish governance, classify and map data, store data in cloud-based platforms, conduct data observability, and create comprehensive DG frameworks with external expertise. 

Implementation and Future Considerations: PreludeSys with Delphix 

Implementing data compliance may seem daunting, but it is necessary for any organization. We at PreludeSys are a Delphix partner offering Delphix licensing, implementation, and governance support solutions. We offer all kinds of data compliance services including GDPR compliance services through Delphix integration. Please drop your details in the form, and our experts will contact you.