How Are Businesses Likely to Respond to Future Compliance Mandates?
Given the risks and costs of responding to today’s compliance mandates, enterprises are likely to start pushing back (strongly) on emerging regulations. The costs from compliance implementation, enforcement, servicing DSRs, and paying regulators’ compliance fines will continue to rise as will lost revenue from re-designing or entirely dismantling data-driven consumer services to meet current mandates. Businesses with problematic compliance infrastructure have few choices until new thinking is applied to platforms and tools to intelligently automate compliance and enforcement.
Compliance Infrastructure Choices Can Sacrifice Profitability
Data compliance and enforcement within enterprises is a very intrusive, time-consuming, and costly process. Many enterprises have invested in narrow tools and technology platforms optimized for a single mandate, such as GDPR in the EU, which does not adequately solve for compliance regulations of another mandate such as CCPA in California. Selection of the wrong compliance tools and technology platforms can have devastating intermediate and long-term impact to income and balance sheets after unplanned intra-year investments are required to meet increasingly complex requirements.
How Can Businesses Comply Without Sacrificing Profitability?
There are two lines of thinking that make up the best approach for selecting the right compliance tools and technology to meet the mandate(s). First, enterprises must stay informed of the evolving nature of compliance regulations and the major data technology trends driving business value. They must find and select compliance tools with core technology that is aligned with these enterprise data trends. Second, enterprises must adopt technology, tools and practices that provide compliance assurance without compromising business objectives. They must seek out solutions that can ensure compliance and enforcement without scaling costs, as data volumes, sprawl and regulatory mandates expand.
Is Technology Available for Decreasing Compliance Complexity and Cost?
Compliance platforms that have evolved over the past thirty years mostly driven by whack-a-mole responses to new mandates, come with two major deficiencies.
First, discovery and classification functions within many of today’s platforms are still limited to known data objects such as a customer’s SSN or an address. In designing their platforms for specific compliance mandates, developers unwittingly constrained their platform capabilities to simple data types within structured data repositories. Many legacy platforms are incapable of complex data object discovery and classification, and cannot accurately discover data objects in unstructured data repositories
A second major deficiency of today’s data compliance platforms is sufficiently automated compliance enforcement. Most of these platforms employ manual processes with marginal automation. They are EXTREMELY LIMITED in their ability to effectuate the data object transforms required to avoid sacrificing business utility. In short, the core capabilities of these platforms are designed for single data compliance mandates , but not for flexibility in data types, cloud or on-prem repositories, scalability, or cost-efficiency across mandates. For example, a digital health enterprise that requires data compliance across PII, GDPR and HIPPA mandates.
In short, legacy data compliance platforms are not “abstracted” to efficiently work across compliance mandates or data types stored in structured AND unstructured data repositories, on-prem and in-the-cloud.
See Part 3 to Learn How Best-in-Breed Solutions are Helping Businesses Cross the Compliance Chasm
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