Protecting Data through Compliance Risk Management
Data enrichment converts raw data into a valuable business asset. This is essential to maximize the growth potential of the company. Data, which has been enriched, can be used in the processing and analysis of market trends, patterns, and used to provide the business with valuable information. However, the data enrichment process is not without risk. There is the distinct possibility of crucial information being lost in the enrichment process. A business must identify the risks associated with enrichment if they are to create solutions that can curb it effectively. A business must make all the necessary effort and lay down all of the requisite structures in order to ensure that its business is kept safe and maintains its integrity.
Compliance risk management is a process where, through analysis and research, areas that have potential for data loss within the enrichment process are identified. The identification process must be thorough and must account for situations which, though unlikely, are possible. Once this is completed, the next stage is the creation of a compliance strategy. This refers to a strategy that outlines what steps the business is going to take in order to mitigate, eliminate, and avert the risks that have been identified. The compliance strategy also outlines the response mechanism that should be executed in case loss occurs. Compliance must be done in accordance with the existing standards, industry norms and known best practice in that particular field. This not only protects a company’s data but also indemnifies them from the occurrence of such events.
The main reason for focusing on what others in the field have put in place is that it enables the business to seek out an insurance policy. In some cases, a business can insure valuable data from loss, theft, or other harmful events. However, before they are granted a policy, they must show that their structures for protection of data are in compliance with what the industry has set out as best practice. Insurers will be unwilling to risk a payout because of faulty mechanisms within the company structure which occasioned the loss.
Compliance risk management has a number of key benefits. First, it creates a proactive environment where data loss is concerned. It is much easier to prevent a loss than to correct it, especially where data is sensitive. Second, it creates efficiency regarding the management of data in a company. This enables the company to conduct its affairs much more effectively.
Compliance risk management is a process where, through analysis and research, areas that have potential for data loss within the enrichment process are identified. The identification process must be thorough and must account for situations which, though unlikely, are possible. Once this is completed, the next stage is the creation of a compliance strategy. This refers to a strategy that outlines what steps the business is going to take in order to mitigate, eliminate, and avert the risks that have been identified. The compliance strategy also outlines the response mechanism that should be executed in case loss occurs. Compliance must be done in accordance with the existing standards, industry norms and known best practice in that particular field. This not only protects a company’s data but also indemnifies them from the occurrence of such events.
The main reason for focusing on what others in the field have put in place is that it enables the business to seek out an insurance policy. In some cases, a business can insure valuable data from loss, theft, or other harmful events. However, before they are granted a policy, they must show that their structures for protection of data are in compliance with what the industry has set out as best practice. Insurers will be unwilling to risk a payout because of faulty mechanisms within the company structure which occasioned the loss.
Compliance risk management has a number of key benefits. First, it creates a proactive environment where data loss is concerned. It is much easier to prevent a loss than to correct it, especially where data is sensitive. Second, it creates efficiency regarding the management of data in a company. This enables the company to conduct its affairs much more effectively.
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