The rush to digitalization around the world has come with a great amount of risk. The risk has been shared by private industry and governments alike, as news of data breaches and hacker attacks have made global headlines. Sometimes, simple misconfigurations have led to embarrassing and potentially privacy-compromising incidents. In other instances, specifically directed cyber attacks have exposed the personal data of millions of people.
Anytime data security issues such as these occur, the potential consequences are massive. This is true not only for the business or government at fault, but also for everyone whose data has been stolen. This year has produced some of the largest data security incidents to date, and all signs point to that trend continuing. This has left governments examining the steps necessary to create a safer and more secure digital environment going forward. It is also forcing businesses to review their digital risk-management strategies.
The high-profile nature of many of the latest data breaches has led to renewed regulatory scrutiny by governments around the world. In the U.S., there have been Congressional hearings in the wake of the Equifax hack, which exposed the financial information of 145.5 million American consumers. So far, it’s unclear if the hearings will lead to a new round of data-security regulations, but there’s already proposed legislation that would set standards and penalties for businesses regarding customer notification of data security breaches.
The European Union, by contrast, has been far more forward-thinking and decisive. The General Data Protection Regulation (GDPR), set to be implemented by May 2018, has created a framework of legal responsibilities for data security and enumerated rights for individuals regarding personal data collection and storage. The new regulation joins others that already set standards for European (and multinational) financial institutions regarding transparency and digital compliance reporting.
Businesses begin to adapt
In the business world, there is a universal need to update compliance and governance policies and to invest in digital security infrastructure. Most companies have been producing large volumes of digital data for many years, but few have the staff or expertise necessary to manage and secure all of it. Fortunately, the latest Big Data platforms allow companies to aggregate, process, and secure their data in a seamless architecture. Development of these systems is crucial to the future of cybersecurity.
In addition to voluntary policy changes, the potential legal ramifications have spurred changes. In reaction to the pending regulations in the E.U. and the potential for new requirements in the U.S., many global businesses have started to update and bolster their digital risk management efforts. Since the E.U. regulations are (so far) the most stringent and wide-ranging, multinationals and regional firms are using them as the baseline on which to base their policies and practices. It is also intended to head off further legislation that could be costly to affected industries.
The future of digital risk
The very nature of the technological advancement that has created the present security challenges guarantees the risks will continue. To stay ahead of an ever-changing digital landscape, additional actions will surely be needed from actors on all sides. This likely means the promulgation of further regulations and reporting requirements from governments, as well as more comprehensive digital risk management efforts throughout the private sector. There’s still a fair amount of catching up to do, but it seems that the appropriate amount of attention is now being given this pressing global problem.
To learn more about cybersecurity and digital risk, check out Five Ignored Practices That Can Disarm Your Cybersecurity Time Bomb.