Data Privacy Roadmap: Where We Are, Where We’re Headed, How We Can Get There

Data Privacy Roadmap: Where We Are, Where We’re Headed, How We Can Get There

Sep 21, 2023 | Data & Cybersecurity

Dataprivacy map

Since the introduction of the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), data privacy has become an essential aspect of Third Party Risk Management (TPRM). With constant changes in data privacy regulations, staying up-to-date with international and state-specific rules is crucial to ensure compliance.

Law Tracked

The absence of consistent national regulation is made even more complex by the additional provisions that different state lawmakers add to privacy rules. These rules often have conflicting information on both the level of protection required and what is covered by the rules. This includes measures such as securing data collectors for payment cards, using encryption, disclosing breaches and the methods used for disclosure, records retention and destruction, and, in the case of the Nevada Security and Privacy of

Personal Information regulations, violations of the rules being deemed as deceptive trade practices, which was added to the original 2004 rule in 2021.

Law Tracked

To make their data governance processes more robust, TPRM programs should:

  • Start with sound models: The Massachusetts Standards for the Protections of Personal Information of Residents of the Commonwealth stands out as a model that affords a starting template for practitioners. Meet or exceed NIST 800-161 Rev 1. Cybersecurity Supply Chain Risk Management Practices the oversight guidance by CISO (“or equivalent”) to ensure access rights to privacy data are tracked through third and Nth parties. Using a comprehensive model provides a defensible stance.
  • Set and Enforce Processing Data Privacy Rights Requests: Know where your personal data is on premise; in your managed clouds; and at your vendors to ensure robust controls around the processing of requests, including controls around mechanisms for terminating access to data whenever needed.
  • Know the rules: And follow them. If violations occur, know your rights. Many jurisdictions have no-fault timelines for resolving issues. When remediating, meet timelines and provide accurate reporting of changes made to mitigate identified issues.
  • Think ROPA: Outside the US, Record of Processing Activities (ROPA) documents ingress/egress of data sets that third parties touch. Adopting a ROPA-like approach, where the data goes, who handles that information, and the format (de-identified, tokenized, etc.) is consistently documented and monitored, provides a higher level of data governance.
  • Use contracting and monitoring effectively: Contractually require third parties to verify where data resides and chain of custody requirements. Specifically, it requires notification of Nth touching data sets with the right to refuse that permission and that Nth parties must meet or exceed agreed-upon controls.
  • Implement enterprise policies: To enhance efficiency and effectiveness, it is essential to ensure that enterprise policies are being implemented. Rules that are not being put into operation cannot produce sound outcomes, and thus, it is necessary to evaluate and improve the policies. Additionally, it is crucial to enhance consent management at the portal level. In doing so, it is essential to differentiate which data is under the control of the outsourcer and which data remains under the service provider’s or data processor’s control. This differentiation is a significant step in assessing the risk involved in data-sharing relationships. To mitigate risks, it is recommended to include clawback provisions such as encryption and/or tokenization. These provisions should also cover timely notification of breaches, hold harmless clauses, and specific audit/monitoring rights.

For Shared Assessments members who are product users:

  • Incorporating the Shared Assessments Data Governance Products into data privacy assessments provides insight into data governance processes and possible compliance gaps. The type of tracking and analysis available helps practitioners to stay abreast of such changes as the 2023 SEC expansion of the right to audit rules governing privacy right searches, reflecting the growing mandate to go beyond the control testing ‘light touch’ that we have seen before this shift in the data privacy landscape. With data/screenshots mandated as documentation for assessments and monitoring, the Data Governance Products provide a tracking mechanism for information tied to PII and other data that may fall under the various rules globally.
  • Scoping the Privacy Sections of the Standardized Information Gathering (SIG) Questionnaire and the Standardized Control Assessment (SCA) by using questions related to CCPA and other state regulatory privacy obligations.

In this ever-changing environment, there is a chance to succeed or fail. Your information security programs may not require much change if they are already strong. However, it’s advisable to review them proactively to improve protection levels and make updates as needed in response to changes as they occur. You should also frequently audit third-party security practices and maintain an inventory of all the entities with data access. It’s essential to thoroughly review emerging technologies that third parties are using and consider adopting them before implementation.

To ensure the most accessible compliance pathway, consider setting the most restrictive regulation applicable to your setting as a default for all your data management processes. This approach demands privacy by design in all products and services. To achieve this, liaise with all cost centers and enlist the support of senior leadership to prioritize data security efforts across the enterprise. While privacy-by-design may be initially more expensive, it will prove to be a competitive advantage as the landscape evolves.

Additional Resources from Shared Assessments:

State-by-State Privacy Rules and Other Related Resources:

James Arnold

James is a proven leader in both the civilian and military settings specializing in Privacy Engineering, Data Governance, Cybersecurity, Risk Management, Regulatory Impact Analysis, and more! He is the 2023 Chair of the Shared Assessments' Data Governance Committee

Ron Parham

Ron manages regulatory mapping where he provides members with materials to assist them and their third party partners in navigating the #risk and regulatory landscape. For him, the best part of his role is being able to continuously learn, collaborate, and adapt in an ever evolving discipline. Outside of work he enjoys spending time with his family and working on his fitness.

Colleen Milazzo

Colleen leads Shared Assessments' TPRM Software Product Team, which develops products for third-party risk assurance. Colleen has over 20 years of experience within the financial services industry and consulting. She has led programs associated with risk management, procurement/contract negotiation, mergers and acquisitions, and business process reengineering. She has regulatory and global experience executing portfolios to meet corporate strategy.

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