Data is easily one of a business’s most critical assets in a data-driven world. However, as the amount of data collected and processed by companies continues to grow, so does the need for effective data audit and compliance processes.

It gets even scarier when you lose control of that data. Today, organizations operate in a complex and highly dynamic global environment. Hence, managing data risk and compliance due to the impact of the market and business changes is an organization’s biggest challenge. According to a recent report, the audit, risk, and compliance market is poised to grow as this technology helps organizations anticipate, understand, and holistically manage their risks. As a result, organizations can balance risks and opportunities, make strategic decisions effectively, and respond efficiently to the changes occurring within and outside the enterprise.

Data audit and compliance are critical to ensure that businesses comply with legal and regulatory requirements, protect sensitive data, and mitigate risks associated with data breaches. Let’s explore why working with data audit and compliance is critical, especially when dealing with large data sets.

What is Data Audit and Compliance?

Data audit and compliance refer to businesses’ processes and procedures to ensure that their data is accurate, complete, and secure. These processes involve evaluating the quality of the data and verifying that it meets legal and regulatory requirements. Data audit and compliance also protect the data from unauthorized access or use.

Data audit and compliance can involve various activities, including:

• Data Classification: Data classification involves categorizing data based on sensitivity and value. This helps businesses identify and prioritize data protection measures.
• Data Inventory: Data inventory involves identifying all data sources and their locations. This helps businesses understand the scope of their data and its potential risks.
• Data Access Management: Data access management involves controlling who has access to data and what they can do with it. This helps businesses protect sensitive data from unauthorized access or use.
• Data Retention: Data retention involves defining how long data should be stored and when it should be deleted. This helps businesses comply with legal and regulatory requirements related to data retention.

Why are Data Audit and Compliance Critical?

Data audit and compliance are critical for several reasons:

• Compliance with Legal and Regulatory Requirements: Businesses must comply with various legal and regulatory data privacy and security requirements. Non-compliance can result in significant fines, legal action, and reputational damage. Businesses can ensure that they comply with these requirements by implementing data audit and compliance processes.
• Protection of Sensitive Data: Data audit and compliance processes help businesses protect sensitive data from unauthorized access or use. Sensitive data includes personal information, financial information, and intellectual property. Data breaches can result in significant financial losses and reputational damage. By implementing data audit and compliance processes, businesses can reduce the risk of data breaches and protect sensitive data.
• Mitigation of Risks: Data audit and compliance processes help businesses identify and mitigate risks associated with data breaches. Risks can include external threats, such as cyberattacks, and internal threats, such as data theft or misuse. By implementing data audit and compliance processes, businesses can reduce the risk of data breaches and minimize the impact of any breaches that do occur.

Challenges of Working with Larger Data Sets

Working with larger data sets can present several data audit and compliance challenges. These challenges include:

1. Increased Complexity: Larger data sets are more complex, with more data sources and types to manage. This can make it more challenging to identify sensitive data and assess its associated risks.
2. Performance Issues: Larger data sets can also present performance issues, with slower data processing and analysis times. This can impact the effectiveness of data audit and compliance processes.
3. Data Storage: Larger data sets require more storage space, which can increase costs and make managing data storage and retrieval more challenging.
4. Data Privacy: Larger data sets can also present privacy challenges, with more data to protect and more potential risks associated with data breaches.

Getting started with audit and compliance best practices

In conclusion, data audit and compliance are critical for businesses to ensure their data is accurate, complete, and secure. However, there is still a lot of learning happening. According to a recent market report, a lack of awareness about the various benefits of governance, audit, risk management, and compliance, especially in small and medium businesses, has hindered business growth. Furthermore, continuous changes in the company’s IT operations and organizational structures will likely create data silos and challenges. For instance, only 36% of organizations have a formal enterprise risk management (ERM) program.

Working with good audit and compliance tools is necessary from an IT operations perspective. By implementing data audit and compliance processes, businesses can comply with legal and regulatory requirements, protect sensitive data, and mitigate risks associated with data breaches. However, working with larger data sets can present challenges. Don’t get lost in the sea of data and compliance. TFORM’s data experts and professionals are equipped with the best tools to navigate often complex compliance topics. Don’t wait; understand your audit and compliance requirements before it gets too complicated.