Why testing is fundamental to effective data compliance

By Soniya Bopache, VP and GM, Data Compliance at Arctera

The world of compliance has been irreversibly changed by lawmakers tackling the constantly evolving challenges caused by new technologies. Whether it’s the positive impact of new tools for communication and data processing or the negative impact of cyberattackers, technology has made compliance more complex. None of us can be confident that what was compliant yesterday will be compliant tomorrow.

This adds up to a new normal where everything needs constant testing and revision. This has recently been recognised by the Financial Conduct Authority (FCA) which now requires UK-based FSIs to regularly test their systems to ensure they’re up to date with their operational resilience. To ensure compliance, it’s no longer enough to have a robust policy in place. FSIs now need to make sure that the technology underpinning that policy is keeping pace with the evolving threat landscape.

Whilst the FSA is early to bring policy around this kind of testing, FSIs are far from the only organisations that need to up their game. With cyberattackers targeting everyone, testing should be seen as a priority across all industries. In fact, as a whole, large enterprises spent an average of $4.88 million per data breach last year.

The importance of rigorous internal compliance frameworks

With cyberthreats becoming increasingly sophisticated and cybercrime becoming more organised, businesses need to raise their game. Too many organisations wait until the worst-case scenario plays out to review their policies. But, of course, by then, it’s too late to do anything if the solutions they have in place are found wanting.

Regular testing to identify vulnerabilities and possibilities for breaches enables businesses to take an always-on approach of preparing for the inevitable-but-unpredictable cyberattacks that will hit them.

Testing is a business-critical discipline

Unfortunately, too few organisations today are taking the time to adequately test and revisit their cybersecurity compliance strategies. It’s understandable, especially in the current economic climate, given that testing can be resource-intensive, without any immediate ROI. But the long-term cost can be far greater if an organisation is unexpectedly fined due to poor compliance.

Those that do test often build it into their annual plans. But, sadly, testing annually is far too irregular to defend against constantly evolving ransomware threats. Instead, audits need to be multi-faceted and take place on a much more frequent basis.

Building a culture of compliance

These regular audits should evaluate the effectiveness of a risk-management framework, ethical guidelines, and data governance practices. By identifying areas of potential non-compliance, companies can take proactive measures to address issues before they escalate.

But how? Collaboration with regulatory bodies and industry peers is essential for navigating compliance challenges. Engaging with regulators can offer valuable insights into emerging regulations and best practices. Additionally, participating in industry forums and working groups focused on compliance allows organisations to exchange knowledge and learn from industry peers, fostering a collaborative environment for tackling shared challenges.

Regulations are evolving, data is multiplying, and the risks of mismanagement are higher than ever. Organisations that conduct regular audits and have a demonstrable, robust testing framework are best placed to collaborate with regulators and industry forums and lead the way in delivering a culture of compliance.

Ensuring data accuracy and integrity

By designating data stewards responsible for delivering a robust and regular testing framework, organisations can ensure data accuracy and integrity throughout an entire data lifecycle.

How AI can be a solution to compliance challenges

Artificial intelligence (AI) can be a powerful ally in compliance testing. AI-driven compliance tools can analyse vast amounts of data, detect anomalies, and provide insights that human analysts might overlook. Predictive analytics can be leveraged to anticipate compliance risks based on historical patterns, allowing for proactive risk mitigation. Streamlining reporting processes with AI tools can also facilitate the efficient generation of compliance documentation and reports.

Organisations need to consider how they can most effectively deploy AI solutions within their compliance strategy to improve accuracy and efficiency. Again, testing is a key component to delivering this and assessing its effectiveness. Fostering ethical practices through regular training enables organisations to make compliance a shared responsibility.

By leveraging AI technologies, organisations can streamline compliance monitoring, identify potential risks in real-time, and take action when an anomaly is detected.

Testing frameworks are an imperative

The need for robust testing processes has never been greater, especially when it comes to compliance. Implementing regular testing processes, building a culture of compliance, and ensuring shared accountability for data protection is an imperative for organisations today.

Testing is becoming a bit like painting the Forth Bridge – when you get to the end, it’s time to start again. And, while that might sound monotonous, that’s where AI can step in and help. What’s undeniable, though, is that the days of setting a policy to ensure compliance and then forgetting about it are in the past. Today, compliance is a living thing.