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By Alisa Fetic
All businesses have relationships with third parties in one way or another. It might be suppliers, vendors, or service providers. Nonetheless, effectively managing these relationships is an important aspect of the success of your business. In this era, data privacy has proven vital since data is at the core of all modern businesses.
Like all things in life, there are certain risks inherent to privacy, in particular, data privacy especially where 3rd party providers are involved. Cybercrime has significantly risen over the years resulting in massive financial and intellectual losses. Data privacy is primarily the responsibility of Chief Privacy Officers (CPO). Most organizations leverage 3rd party service providers to bridge the in-house resource gaps.
Third-party Risk Challenges for Privacy Officers
Privacy officers typically face three main challenges, which we are going to quickly look at.
Overcoming complexity in data mapping
Most organizations manage considerable amounts of data from multiple sources and varied types. Through data mapping, privacy officers can significantly curtail privacy risks, especially involving third parties. However, the data is heterogeneous, especially in levels of complexity and significance to business operations. Your privacy officers should identify the different classes of data, and then make conscious steps to protect and safeguard the data from illegal transfer and distribution.
Honoring “do not sell or share my data” requests
Customer privacy has become an important aspect of all modern businesses. As a consequence, organizations must be careful that data is not shared, distributed, sold, or copied unlawfully. Your organization must be aware of everything relating to the data accessible by third parties, and how these providers process and use the data. This enables you to effectively manage third-party risks and compliance with customer privacy regulations.
Demonstrating regulatory compliance
Speaking of compliance, it is rarely enough to achieve compliance, your organization also needs to demonstrate that you are compliant to set regulations. This means being prepped and ready for government audits 24/7 365 days a year. Moreover, you need to show that you are capable of addressing any data privacy issues raised by customers or business partners. The consequences of failing to show compliance are dire and include hefty fines and operational penalties, arduous public relations, decreased customer trust, and even reduced market share.
What Technology Can Privacy Officers Use to Mitigate Risks?
In this modern era, the best way to mitigate risks is to leverage technology. One of the easiest and most effective ways to mitigate data privacy risks is through automation. With automation, you can reduce the potential for human error, while accelerating processes. When properly implemented, automation results in an aligned workflow and consistent execution across teams.
Automation can also help you avert risks through automatic risk flagging. This brings up any potential risk scenarios to relevant team members before it escalates into something serious. Automation solutions can also help you streamline your record-keeping and auto-record generation when needed for audits and compliance.
Wrapping Up
In this era, data is essential for successfully running businesses regardless of size. You must keep all data private and secure, especially when utilizing third-party service providers.