What are the key steps and tools for a data privacy audit?

Begin by defining the audit's scope and objectives, identifying and categorizing data assets, and mapping data flows. Review and assess policies, access controls, and security measures, including encryption and monitoring tools. Evaluate vendor agreements, employee training, and data breach response plans. Utilize tools such as Varonis for data discovery, Lucidchart for data flow mapping, and Splunk for security information and event management. Document findings, provide recommendations, and follow up with remediation steps to enhance overall data privacy controls and practices.

One thing I've found helfpul in Brazil is to look into the guidelines issued by the Data Protection National Authority (ANPD). While the Brazilian law is quite similar to EU's GDPR, the guidelines that have been set forth by ANPD are not. They make the requirements of the low more "localized" to the Brazilian context, and have very practical intructions that are useful for data audits.

In general, we should define the audit objectives first. Therefore, defining the audit scope becomes clearer. Audits can be compliance audits or risk-based audits, which is why defining audit objectives has a major impact on defining the scope. Then, we should create a register of processing activities (ROPA), including data sources, data types, data categories, and, as applicable, the data controller or processor.

Scope 1. Data Processing Activities 2. Data Types and Classification 3. Legal and Regulatory Compliance 4. Data Subject Rights 5. Data Security Measures 6. Policies and Procedures 7. Third-Party Management 8. Data Breach Management 9. Training and Awareness 10. Monitoring and Reporting Objectives 1. Identify Risks and Gaps 2. Ensure Compliance 3. Protect Data Subjects 4. Enhance Data Security 5. Improve Policies and Procedures 6. Strengthen Third-Party Management 7. Prepare for Incidents 8. Promote Awareness and Training 10. Build Trust Map data flows to understand how personal data is collected, stored, used, shared, and disposed of. Classify data based on sensitivity and regulatory requirements (e.g., PII, PHI, financial data). |

Defining the scope/boundaries of the audit, including the systems, processes, and data types to be reviewed. Identification of the data privacy laws and regulations relevant to your organization. Review organization’s data privacy policies and procedures to ensuring they align with regulatory requirements. Reviewing Data Inventory and Mapping, Data Collection and Processing Practices, Data Security Measures, Data subject rights.

All roads need to lead back to your ROPA, your Record of processing activities. You need to demonstrate a clear understanding of what information your company has, where it is and what you do with it.

1. Define the Scope and Objectives 2. Identify Data Sources 3. Catalog Data Assets 5. Classify Data 6. Assess Legal and Regulatory Requirements 7. Analyze Data Protection Measures 9. Identify Gaps and Risks 10. Review and Update Regularly 1. Data Mapping Tools MuleSoft: Provides data integration and mapping tools, especially for complex data environments. 2. Data Classification Tools Varonis: Offers data classification and security tools to identify and protect sensitive data. Spirion: Helps discover, classify, and protect sensitive data. 3. Compliance Management Tools OneTrust: A privacy management tool that helps with data inventory, mapping, and compliance.

There are strict legal requirements to document your data processing activities under Article 30 of the EU GDPR and currently UK GDPR. Even if proposed new UK law removes the requirement to have a ROPA, the UK Information Commissioner’s Office has made it clear in recent conferences, that it is still likely to be necessary to understand what information you have, where it is, what you do with it and how you comply generally. This helps improve information governance, accountability principle compliance and your organisation to understand how to comply with other aspects of data protection law (e.g. ensuring appropriate legal bases, that the correct information is in your privacy notice, your data is secure etc.).

Following the establishment of scope and objectives in a data privacy audit, the subsequent step involves creating a detailed data inventory and mapping. This entails documenting sources, types, locations, flows, and destinations of personal data, along with recording purposes, legal bases, retention periods, and security measures for each data activity. The resulting inventory facilitates a comprehensive understanding of the data lifecycle and aids in identifying potential privacy risks and gaps within the organization.

Companies need to know their data. This can be formally called performing a Record of Processing Activity (ROPA), data inventory or data mapping. Included is understanding the business processes, legal basis, business purpose, retention, data elements, systems, vendors shared with, and if data is sold among other fields. Data inventories help identify privacy risks or gaps in knowledge.

1. Define Scope and Objectives 2. Gather Information:Data Inventory,Data Flow Mapping 3. Evaluate Data Collection Practices 4. Assess Data Processing and Storage 5. Review Data Sharing and Transfers 6. Check Access Controls 7. Assess Security Measures 8. Review Policies and Procedures 1. Data Inventory and Mapping Tools:Collibra,Informatica 2. Data Classification Tools:Varonis,Spirion,Digital Guardian 3. Compliance Management Tools:OneTrust: Privacy management tool for data inventory, mapping, and compliance. 4. Security Assessment Tools:Qualys,Tenable 5. Access Control and Identity Management Tools:Okta,Ping Identity,Centrify 6. Data Protection and Encryption Tools:Symantec Encryption,IBM Guardium 7. Risk Assessment Tools:RSA Archer:

Proceeding to the third step, a data privacy audit involves executing a comprehensive data privacy assessment. This assessment encompasses scrutinizing compliance with data protection laws, regulations, and internal policies. It further involves a thorough analysis of data privacy risks, prioritizing them based on impact and likelihood, and offering actionable recommendations for improvement. A data privacy assessment is crucial in a data privacy audit as it systematically evaluates compliance, identifies risks, and provides actionable recommendations, ensuring a robust protection framework.

In our experience, most organisations are keen to understand not only the risks and gaps, but also areas of existing good practice which, once identified in one area of the business, can often be more easily rolled out to other areas of the business. Identifying the organisation’s data protection maturity will help to: - Demonstrate how far the organisation has progressed on its data protection compliance journey. - Clearly identify outstanding risks and prioritise remedial actions. If you still have a long way to go, it is unlikely you will have the budget and resource to complete all necessary actions at once, but a clear understanding of the path ahead will allow you to make educated risk decisions and budget accordingly.

In the data privacy audit process, the third step involves conducting a data privacy assessment. This includes evaluating the compliance and performance of data activities against relevant laws, regulations, internal policies, and best practices. Analyzing identified privacy risks and gaps, prioritizing them based on impact and likelihood, enables measurement of the effectiveness and maturity of the data privacy program, providing valuable recommendations for improvement.

Privacy program assessments help identify the gaps against privacy laws and a company’s risk posture. This assessment should be used to create the company’s roadmap to addressing these gaps and risks. Privacy programs are evolving and need to be flexible to incorporate new privacy law requirements.

Not all the tools listed are actually "tools". A process for responding to the exercise of rights by data subjects (DSAR) is not exactly a tool for carrying out an audit. You can audit the rights exercise response process, but it is not a tool in itself. It is worth looking at the tools provided by ISACA and NIST.

Bringing a privacy program to life needs tools whether that be a spreadsheet or sophisticated software tools. Tools are just that - a way to help companies performing the requirements of the laws. Successful tools require process, people and training to go with it. Once implemented, there needs to be continuous review to ensure the information in the tool is accurate and that the tool is functioning properly. It’s not a set it and forget approach.

1. Data Discovery and Classification Tools:Varonis, Spirion, and DataGuise. 2. Data Inventory and Mapping Tools: Collibra, Informatica, and Alation. 3. Compliance Management Tools: include OneTrust, TrustArc, and Nymity. 4. Access Control and Identity Management Tools: Okta, Ping Identity, and Centrify. 5. Data Protection and Encryption Tools: Symantec Encryption, Vera, and IBM Guardium. 6. Risk Assessment Tools: RSA Archer, LogicManager, and MetricStream. 7. Security Assessment Tools: Qualys, Tenable, and Rapid7. 8. Incident Response and Management Tools: IBM Resilient, Splunk, and FireEye. 9. Data Masking and Anonymization Tools: Delphix, Protegrity, and Camouflage. 10. Monitoring and Auditing Tools: SolarWinds, Splunk, and LogRhythm.

In my experience, leveraging data privacy tools significantly streamlines compliance efforts. Tools like data discovery platforms (e.g., Varonis) aid in locating sensitive data across networks, simplifying the identification process for GDPR or CCPA compliance. Additionally, data classification tools (like Microsoft Information Protection) facilitate sorting and labelling data, easing its management based on privacy requirements. Mapping tools (such as OneTrust) visualize data flows, essential for understanding where sensitive information moves within systems. Utilizing these tools not only expedites auditing but also fortifies ongoing data privacy management by automating tasks, ensuring compliance, and enhancing overall data protection.

Bringing a privacy program to life needs tools whether that be a spreadsheet or sophisticated software tools. Tools are just that - a way to help companies performing the requirements of the laws. Successful tools require process, people and training to go with it. Once implemented, there needs to be continuous review to ensure the information in the tool is accurate and that the tool is functioning properly. It’s not a set it and forget approach.

1. Executive Summary: A brief overview of the audit objectives, scope, key findings, and recommendations for senior management. 2. Introduction: An introduction to the audit process, including the purpose, scope, and methodology used. 3. Audit Findings: A detailed description of the audit findings, including any areas of non-compliance, vulnerabilities, or risks identified. 4. Data Inventory and Mapping: Details of the data inventory and mapping process, including the types of data identified, and data storage locations. 5. Data Protection Measures: Assessment of the organization's data protection measures, including encryption, access controls, and data masking. 6. Compliance Assessment: Evaluation of the organization's compliance.

In our experience, this part of the audit process takes the longest to complete. Before commissioning a report from a third party data protection auditor like ourselves, consider your objectives and how the report could be best presented to help you achieve compliance. In addition to the areas already identified in this article, consider if you need: - A granular audit report for each group company/ business function/ service area/ system/ geographical office. - Compliance update in relation to data sharing with third party controllers and processors - e.g. suppliers, cloud providers etc. - Any further actions needed to finalise the audit - e.g. if responses were incomplete etc. - A granular breakdown of remedial measures needed.

Compile the findings of the data privacy audit into a comprehensive report that summarizes key observations, findings, and recommendations. Present the report in a clear, structured format that highlights areas of compliance, non-compliance, and opportunities for improvement. Include actionable insights and prioritize recommendations based on the severity and impact of identified privacy risks. The data privacy report serves as a valuable resource for stakeholders, management, and regulatory authorities to understand the organization's privacy posture and drive remediation efforts.

When we create data privacy reports we always clearly separate between a documentation of the status quo, the analysis against the regulatory requirements, and suggested improvements. We analyse the activities, roles and shortcomings in detail, and summarize the findings in an executive summary. This, together with prioritized recommendations, forms a solid base for all levels of stakeholders to use the report to their advantage.

This is the most crucial part of an audit. It ensures the security of personal data throughout its lifecycle, leaning on security best practices and emphasizing openness with users about privacy policies and procedures.

In addition to the steps already identified in this article, we usually discuss our client’s risk appetite, priorities and budget. There may be actions that the clients can take themselves, but others where our additional resource/ legal expertise will help. There may be particular operational drivers for taking a particular approach or reasons for prioritising specific remedial actions. Timelines for resolution of actions may span several months or years. It is therefore really important to ensure clear accountability of those assigned to manage the action points identified and to carry out regular review and monitoring of progress.

We typically come up with a roadmap for improvement, and will separate actions on the client side and on our side as consultants. This enables us to secure sufficient resources on both sides, involve the right stakeholders and see/manage dependencies. Through regular evaluations and status reports we keep track of the progress.

Develop a data privacy action plan based on the findings of the audit to address identified gaps, weaknesses, and compliance issues. Define specific action items, responsibilities, timelines, and resource requirements for implementing corrective measures and improvements. Prioritize actions based on their potential impact on data privacy and regulatory compliance. Regularly monitor and track progress against the action plan to ensure timely implementation and continuous improvement in data privacy practices.

Based on the audit report, the organization should develop a detailed action plan to address the identified data privacy issues and improve its overall data privacy posture. This plan should include specific tasks, timelines, responsibilities, and resources required to implement the necessary changes and enhancements. Regular monitoring and updates to the action plan are crucial to ensure continuous improvement and compliance.

Apart from the key steps mentioned above. One of the key steps and one of the initial steps is to put together an efficient audit team. In my experience, I feel an effective audit team would be a multi-faceted team. Data privacy is not a function performed by a single team. It helps if your audit team has members from 1) Legal 2) Data Protection 3) Infosec 4) Tech expertise.

Also, consider integrating continuous monitoring practices. Establish protocols for ongoing surveillance beyond the audit's scope to ensure sustained compliance. For instance, regular data protection impact assessments (DPIAs) or automated tools for real-time monitoring can identify emerging risks. Moreover, emphasize staff training and awareness initiatives. Often, human error remains a significant contributor to breaches. Regular training sessions and simulations can instil a robust data privacy culture within the organization. Lastly, align audit findings with evolving regulatory landscapes. Stay updated on legal amendments or industry standards to adapt your audit processes accordingly and fortify your data protection measures.

Consider the recent case where the European Commission was found to be infringing data protection rules with its use of Microsoft 365. This highlights the importance of going beyond mere compliance checklists when it comes to data privacy. Even major institutions with established procedures can face evolving threats and unforeseen risks. Regularly reassess vulnerabilities in light of new cybersecurity techniques, test your incident response plan with breach simulations, and rigorously evaluate the data privacy standards of your third-party vendors. Data privacy is a continuous journey, not a one-time destination.

To ensure the long-term success and sustainability of the data privacy audit process, organizations should cultivate a strong culture of data privacy awareness and accountability. This includes providing ongoing training and support to all employees, implementing robust data governance frameworks, and empowering cross-functional collaboration to embed privacy principles into the organization's operations and decision-making.