The New Frontier: Navigating the Complexities of Data Privacy and Protection

Data privacy and data protection have rapidly become some of the most significant and talked-about business issues in our modern society. Rooted in globally-reaching regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), we are witnessing the end of the “wild wild west” era of data management. In this new landscape, data has emerged not only as a crucial business asset but also as a source of increasing legal and regulatory scrutiny.

Reflecting on this evolution, we can see the profound impact of these regulations. For instance, during the GDPR’s first year alone, enforcement actions led to €56,000,000 in fines. By January 2020, total fines had soared to €114,000,000, with hundreds of cases still under review by European data privacy authorities. Similarly, the CCPA, which came into effect in 2020, was estimated to cost businesses an initial $55 billion in compliance efforts, affecting both small businesses and large corporations. The ripple effects of such regulations are being felt globally, as new data privacy laws continue to emerge across the U.S. and beyond.

To gain a deeper understanding of how organizations are adapting to these changes, FTI Consulting surveyed more than 500 leaders from large U.S.-based companies. The findings provide a robust snapshot of the current state of data privacy, highlighting the programs, perceptions, and strategies of these corporations.

From my perspective, a few key themes emerge that are particularly insightful, and they reflect both the challenges and opportunities:

1. Change Is the Only Constant: A staggering 75 percent of organizations have made changes to their data privacy practices in response to regulatory pressure in the last 12 months, with most planning to continue adapting. I recognize that regulatory uncertainty will remain a significant driver of change. Nearly all respondents in the survey plan to increase their data privacy budgets, with many expecting to do so by 50 percent or more. This shift underscores the evolving mindset where data privacy is now viewed as a critical business function, rather than a mere cost of doing business.
2. Organizations Face Pervasive Risk: The survey revealed a startling expectation of a nine percent drop in global annual turnover due to a potential data privacy crisis. For companies like ours, this translates into a heightened focus on mitigating risks associated with data breaches, internal data theft, and regulatory investigations. I'm acutely aware of the need to balance compliance with innovation, ensuring that our data privacy solutions not only protect business but also add value to customers.
3. Awareness Does Not Always Lead to Prioritization: While 81 percent of respondents believe their executives are knowledgeable and committed to data privacy compliance, this awareness does not always translate into prioritization. As a data privacy leader, I emphasize the importance of not just awareness but also action. It is crucial that data privacy becomes a central focus at all levels of the organization to ensure preparedness and resilience in the face of evolving threats.
4. People, Process, and Technology Are Needed: The survey’s findings also highlight the need for a comprehensive approach to data privacy, integrating people, process, and technology. At Data Safeguard, we invest in building a culture of privacy/Privacy by Design, supported by robust processes and cutting-edge technology, to safeguard our customers’ data and build trust in our brand.

As we move forward, it is clear that the landscape of data privacy will continue to evolve. Organizations that are proactive in their approach, adapting to new regulations, and investing in data privacy as a strategic priority will be best positioned to thrive in this new era.

At Data Safeguard Inc. , we are committed to leading the charge in this space, leveraging our expertise in AI-powered data privacy and synthetic fraud prevention to help our clients navigate these complex challenges. Together, we can turn data privacy from a regulatory burden into a competitive advantage.

Dr. Damodar Sahu Co-Founder/Chief Growth Officer, Data Safeguard Inc.