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Datasheet


THE 3 CHALLENGES TO EFFICIENCY IN PRIVACY INCIDENT RESPONSE

Patented breach guidance and notification software to simplify compliance

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The risks associated with data privacy continue to expand in unprecedented and
ever-increasing ways. As the number and complexity of breach notification laws
accrue, avoiding fines, penalties, and reputational damage due to non-compliance
is more crucial and difficult than ever.


Organizations that prioritize these obligations know that security and privacy
incidents are both common and inevitable. The true test of incident response
management occurs in the actions taken immediately after incident detection,
where successful compliance hinges on the speed, consistency, and defensibility
of an organization’s assessment and notification decisions. From investigation,
risk assessment, notification decision-making, and analysis, one of the most
important aspects of privacy management is privacy incident response.


To mitigate risk to their brand, customers, and employees, organizations must
learn to centralize incident response within their data privacy initiatives. As
global privacy laws tighten, definitions of regulated data broaden, and customer
awareness of their data privacy rights increases, a foundation of consistent,
defensible privacy incident response allows organizations the confidence to
assess risks and make notification decisions without divesting from other
privacy, security, or compliance initiatives.

Working against competing organizational priorities and inefficient processes,
privacy professionals must make the case to rise above arduous, manual processes
and usher in the age of incident response automation.

> The 2023 Privacy Incident Benchmarking Report reveals that 44% of all
> incidents in 2022 involved paper. Similarly, the vast majority of incidents —
> 95.2% in 2022 —were unintentional in nature, with only 1.5% caused by
> malicious actors.


THE PRIVACY LANDSCAPE

Privacy has significant business value in today’s data-driven economy. As new
international regulations become law, analysts predict many organizations will
increase spending on privacy. And justifiably so. In addition to meeting
compliance requirements and managing risk, a sound privacy program can improve
brand value, grow business, maintain public and investor trust, and provide a
competitive edge.

When considering ways to operationalize privacy
programs, success largely depends on the efficacy of an organization’s incident
response process. Effective incident response requires a solid understanding of
the complex nature of privacy incidents, familiarity with the ever-changing
regulatory environment and public perception of privacy, as well as the critical
role incident response management plays to reduce risk.


INDUSTRY THREATS

The 2022 Verizon Data Breach Investigations Report cited 23,896 security
incidents, including 5,212 confirmed data breaches. The findings demonstrate the
high prevalence of these incidents (~22%) across all industries and sizes of
organizations. Nobody is immune from risk.

Contrary to most headlines that center on electronic, malicious incidents and
drive public perception of the privacy space, there are other important areas
which organizations need to focus on.

Every incident, whether paper or electronic, malicious or otherwise, must be
risk assessed against a mosaic of ever-changing, increasingly stringent
regulations to determine if they require notification in the case of a data
breach. Breach notification laws are as wide ranging as they are changing, and
include various state laws, federal and industry regulations such as GLBA and
HIPAA, and international laws such as the EU GDPR and PIPEDA.

Naturally, with increasingly more laws and regulations to anticipate, track, and
interpret in order to align internal governance to external regulations, the
amount of time privacy officers spend assessing incident risk has increased as
well. This creates urgency to arrive at a decision to avoid missing mandated
notification timelines.

However, an improper risk assessment can result in over-or under-notification or
inaccurate notification guidance, putting organizations at risk for fines, loss
of consumer confidence, brand or reputational harm to both a company and its
employees—in other words, the opposite effects of a successful privacy program.

An effective incident response management program—and consequently a successful
privacy program—can be a challenge to put in place. Difficulties in incident
detection and escalation, the complexities of breach notification regulations,
budget constraints, and process inefficiencies are the everyday realities of
privacy pros across all industries.

> As the need for quick and defensible risk assessment is not a one-time demand,
> leveraging automation allows organizations to shorten response time and
> increase incident response efficiency.


WHY OPERATIONALIZE PRIVACY INCIDENT RESPONSE?

Statistics on privacy risks indicate that cyber-threats and human error show no
sign of slowing down in the near future. While these incidents are likely
unavoidable for even the most educated and prepared organizations, the
challenges of incident response surpass other privacy challenges due to the
sheer number and complexity of regulations that entail unique jurisdictional
requirements for breach determination and notification in the case of a breach.
Coupled with internal policies and third-party obligations, an automated
incident response solution provides the consistency and efficiency privacy
leaders need to comply with regulatory and contractual obligations.

Let’s explore the challenges associated with privacy incident response to better
understand how automation helps build a strong foundation to support compliance,
security, and legal operations.




CHALLENGE 1:

DETECTION & ESCALATION

Data privacy incidents come in many forms, each of which involves unique
challenges in the detection period. As a result, it’s not uncommon for
organizations to experience a significant delay between the time of occurrence
and discovery, and again from discovery to containment and eventual
notification.

And who can blame them? After all, organizations that have failed to properly
manage incidents in the past become a cautionary tale among their peers and
sometimes stay in the public consciousness years after the event. Managing
incidents thoroughly and quickly can make or break a privacy team and leave
lasting impacts throughout an organization.

When it comes to managing an incident, efficiency and timeliness are key
components for compliance. The longer an incident remains unresolved, the more
an organization is vulnerable to risk and lapses in compliance.

> Per Radar® Privacy metadata revealed in the 2023 Incident Benchmarking report,
> organizations using automation to operationalize incident response take an
> average of 22.9 days per incident compared to the 2022 IBM Cost of a Data
> Breach Report, which measured organizational process from discovery to
> notification at 277 days.

Many organizations have adopted streamlined methods to identify and report
incidents to privacy teams, allowing for a seamless and coordinated solution for
incident response management. Since 2020, more than three quarters of
respondents to a survey from The Wall Street Journal stated that their
compliance programs, “now rely more on data and advanced tools to help them
streamline workflows and more quickly flag new risks.”

By prioritizing efficiency in incident response processes, teams can reach a
notification decision more quickly, leaving more time to provide notice and
respond to potential crises.




CHALLENGE 2

COMPLEX DATA BREACH NOTIFICATION REQUIREMENTS

When an incident involves the disclosure of personal data, the incident includes
a dimension of privacy. 

Organizations that hold personal data in industries such as finance, insurance,
and healthcare must comply with data breach notification laws of each U.S.
state, as well as all applicable federal laws such as the HIPAA Breach
Notification Rule and the Gramm–Leach–Bliley Act (GLBA) and international
regulations such as the EU General Data Protection Regulation (GDPR) and newly
established UK-GDPR.

At the domestic level, recent adoption of the California Consumer Protection Act
(CCPA) and its recent amendment, the California Privacy Rights Act (CPRA) have
given new value to individual rights, which will likely expand to other state
jurisdictions as new laws pass in 2023 and beyond.

In light of competing jurisdictional requirements, data privacy laws —
especially those with a breach notification component — have grown more
stringent, specific, and numerous than ever before.

Several states have joined the group of almost 30 that have passed specific
requirements to notify attorney generals in the event of a breach and several
more created specific timelines for data breach notifications, requiring
organizations to refresh their understanding of notification requirements
appropriately for each state regulation.

The constant shifting of regulations makes compliance not a one-and-done
activity, but instead requires constant vigilance to keep abreast of changes.
And it is this fluid regulatory landscape that challenges even the most diligent
organizations and their compliance teams to ensure that internal policies abide
by external regulations.




CHALLENGE 3

THE COST OF INEFFICIENCY

The impact of inefficient privacy incident management reaches beyond the breadth
of the privacy team’s day-to-day activities and extends to the organization as a
whole. 

Without operationalized privacy incident response processes, an organization
remains open to unnecessary risk derived from subjective decision-making,
inconsistent risk assessment, and the inherent danger of over- and
under-reporting.This risk is compounded by the potential for

noncompliance and regulatory fines due to increased time spent from incident
discovery to notification decision. And not to be overlooked, third-party
contractual obligations often include even shorter notification timelines.
Tactics such as building in-house incident response systems through the
modification of existing systems or technology tools requires significant
investments of both time and money, in addition to the relentless burden of
keeping current with changing privacy laws.

Often such solutions lack the automation and decision-support that both
compliance and privacy professionals rely on to determine if an incident rises
to the threshold of a notifiable breach. 

Moreso, these in-house solutions fail to create the incident documentation
necessary to support the organization’s burden of proof under federal, state,
and international regulations, leaving additional work to ensure the breach and
notification decisions made were defensible by law.

> What traditional approaches to incident response, such as information
> security, ticketing, and in-house systems don’t address is the time-critical
> requirement to evaluate an incident in the context of applicable laws,
> determine whether it is a breach, and what notification might be required.
> Depending on your industry, failure to assess, notify properly, and notify on
> time can lead to millions of dollars in regulatory penalties plus potential
> litigation.
> 
> For example, in 2022, the average cost of such a breach was $4.35 million,
> according to a new report from IBM Security.

Amid the COVID-19 pandemic, organizations that invested in incident response
were prepared to adapt to new regulations and reaped the benefits of their
foresight. Lessons learned from updating processes for GDPR helped equip privacy
teams to adapt to CCPA and have proven that sound incident response processes
are key for agility and timeliness in the privacy sector.


THE SOLUTION

CONSISTENT & DEFENSIBLE INCIDENT RESPONSE AUTOMATION

An operationalized approach to privacy incident response— one that uses
automation to map regulations to an incident risk assessment and provide
automated notification decision support in the case of a breach — is a critical
component to maintaining compliance with ever-changing data breach laws. As a
result, this consistent and defensible process further strengthens the
foundation of compliance at an organization and frees up time for privacy and
incident response teams to focus on other core responsibilities.

The selection of a tool for privacy incident management is made easier when
organizational priorities are clear:

• Maintain a strong culture of compliance

• Reduce risk across the organization

• Bolster operational efficiency

• Control costs


CONCLUSION

Organizations that demonstrably value privacy through consistent incident
response management will have significant business advantages as the economy
becomes even more data-driven. Consumer demand for increased privacy regulation
is gaining attention at the state level and regulators are requiring that
companies prioritize to meet such requests.

At the risk of reputational harm, diminished customer confidence, regulatory
fines, and loss of future business opportunities, organizations are tasked with
navigating an increasingly privacy-minded world.

As regulations change almost overnight, the challenges of incident response
management continue to increase. Organizations need an efficient, effective, and
defensible method for detecting, reporting, escalating, risk assessing, and
providing notification on the large volumes of inevitable incidents they
experience.

This requires a tool that automates incident response processes in a way that
is:

• Consistent for all incident types

• Scalable to easily meet demand

• Repeatable and defensible to meet burden of proof requirements

Multiple software tools exist to help organizations manage their incident
response processes. Some include homegrown solutions or generic playbooks and
workflows offered by GRC or compliance platforms. While these may have some
value, too often they don’t provide the automation or clear guidance that is
needed for consistent and defensible breach decisioning. An alternative is a
purpose-built solution that offers consistent, automated risk assessment and
breach notification guidance in compliance with the latest regulations.

When selecting a tool for incident response management, privacy pros should keep
their objectives in mind—maintain a strong culture of privacy, reduce privacy
risk across the organization, meet growing privacy needs efficiently,
demonstrate compliance, and control costs. Then, and only then, will the right
choice for a solution become clear.


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