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Digital Identity, Security & Online Fraud

Organisations are not ready for global security risks and regulations

Wednesday 28 June 2017 | 12:19 PM CET

A study conducted by Experian and Ponemom Institute has revealed that companies fail to properly address global security risks and regulations.

The study, Data Protection Risks & Regulations in the Global Economy, asked more than 550 IT security and compliance professionals, involved with their companies' global privacy and data security regulations, to weigh in on the top global security risks, as well as how prepared they feel their companies are to respond to a global data breach.

According to this research, 51% of companies surveyed had experienced a global data breach, with 56% experiencing more than one breach in the past five years. Despite these major security intrusions, 32% of respondents noted that their respective companies still do not have a response plan in place. Almost half (49%) of respondents stated their existing security solutions are outdated and inadequate to comply with global regulations. In addition, only 40% of respondents said their organization has the right security technologies to protect information assets and IT infrastructure in all overseas locations.

Only 9% of respondents reported their organization is ready to comply with the GDPR. Despite acknowledging the challenges and negative effects of noncompliance with the GDPR, 59% said their companies do not understand how to comply.

Surprisingly, 34% said they are preparing for compliance by closing overseas operations in countries with a high noncompliance rate. This indicates they may not fully understand the GDPR, as it doesn't require companies to have physical operations in the European Union to be impacted.

Michael Bruemmer, VP, Experian Data Breach Resolution said that more emphasis is required from companies to get ahead of impending global regulations and risks. They can start by conducting risk assessments and investing in new technologies, such as encryption, as well as considering appointing a data protection officer to oversee compliance.

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