Only One-Third Of Firms Are Ready For GDPR: Ernst & Young
- by Ray Schultz , February 1, 2018
A minority of companies worldwide are ready for the General Data Protection Regulation (GDPR)--and the U.S. is way below average, according to a study by Ernst & Young (EY). But some are using advanced technologies to deal with it.
Of 745 executives polled from 19 countries, 78% say data protection and privacy compliance are increasing concerns. But only 33% have a plan to comply with GDPR.
Readiness is highest in Europe, where 60% are prepared. But the percentage dips in other parts of the globe — Africa and the Middle East (27%), the Americas (13%) and Asia-Pacific (12%).
Meanwhile, only 13% now use forensic data analytics (FDA) to achieve GDPR compliance, but 52% are analyzing FDA tools, and there has been an average increase of 51% in the FDA spend. In addition, 42% feel that data protection regulations will have a major impact on the design and use of FDA.
That said, only 13% feel their firm has the required technical skills to work with FDA, and a mere 12% believe they have the necessary data analytics/data science skills.
“FDA is not just about technology, but about the people who manage that technology and how they use it to manage risks,” states Andrew Gordon, global fraud investigation & dispute services leader for Ernst & Young.
At the same time, 14% are utilizing robotic process automation (RPA), 14% to manage legal and fraud risks, and 39% are likely to adopt it within the next 12 months. In addition, 38% are planning to deploy artificial intelligence.
The GDPR takes effect on May 25.
Gordon notes that “the pace of regulatory change continues to accelerate and the introduction of data protection and data privacy laws, such as GDPR, are major compliance challenges for global organizations.” He adds that “businesses that adopt FDA technologies can achieve significant advantages, benefitting from more effective risk management and increased business transparency across all of their operations.”
EY offers a variety of services to help firms minimize fraud risk and compliance exposure.
