Internal Auditing in the Era of Data Privacy

In the era of data privacy, where information is a valuable asset and its protection is paramount, internal audit plays a crucial role. As businesses rely more on digital platforms, store vast amounts of sensitive data, and navigate complex regulations, robust internal audit practices are essential. Internal audit serves as a safeguard, providing assurance to organizations and stakeholders that data privacy measures are not only in place but are also effectively implemented. As custodians of governance and risk management, internal audit professionals play a crucial role in strengthening defense against data breaches, promoting a culture of compliance, and contributing to the overall strength of an organization in the evolving data privacy challenges.

In a digital age where concerns about one's personal data are on the rise, the arrival of the Digital Personal Data Protection Act, of 2023 provides much relief. Protiviti’s Senior Director, Sindhu Vethoddy moderated a panel of eminent industry leaders Bharathwaj Ramarathnam , Head of Risk, Reliance Nippon Life Insurance, Javed Shaikh , Vice President – Risk & Governance, Teleperformance, Darryl Pereira , Director – Regulatory Compliance, Teleperformance, and Sumi Sukumaran , Legal Director, Teleperformance for a webinar on ‘Internal Auditing in the Era of Data Privacy’. The focal point of discussion was the Digital Personal Data Protection (DPDP) Act, 2023 – a legislative milestone fortifying citizen privacy in India’s evolving digital landscape.

The DPDP Act: A Progressive Leap in Data Protection:

The DPDP Act establishes a robust legal framework for safeguarding individual privacy. At its core is the Data Protection Board, entrusted with regulating diverse digital platforms. This board's multifaceted responsibilities include overseeing regulatory adherence, imposing penalties, providing directives for data fiduciaries during breaches, and resolving citizen grievances. This legislation ensures lawful data utilization, upholding individual rights, and strengthening data security.

Implications, Challenges, and Promises:

In a world where data is considered as the new currency, the DPDP Act's implications are insightful. It empowers the Central Government to classify certain data fiduciaries as 'significant data fiduciaries' based on factors such as data volume, sensitivity, risk to data principles, electoral democracy, and state security. These significant data fiduciaries must fulfill additional obligations, including appointing a data protection officer based in India, engaging an independent data auditor for a compliance evaluation, conducting data protection impact assessments, and undergoing periodic compliance audits.

Key Takeaways:

Beyond ensuring compliance with the DPDP Act, Internal Auditors play a critical role in identifying the risks in the data protection lifecycle and designing the best approach to manage the risks, before they crystallize into non-compliance.

Key takeaways and actions that organizations should undertake:

• Explore Business Opportunities: The DPDP Act creates opportunities for businesses to strategically harness digital data. By seamlessly integrating digital and personally identifiable information, organizations can craft precise strategies tailored to both customers and products.
• Apply Privacy by Design: The principle of privacy by design emerged as a key takeaway urging businesses to include privacy considerations right from the beginning. This aligns with ethical principles, integrating data privacy into the organizational values. Prioritizing transparency builds strong customer relationships for a secure digital environment.
• Appoint Data Protection Officer: A critical aspect emphasized was the need for businesses to appoint and define the role and responsibilities of a data protection officer. Businesses should crucially make decisions to hire individuals capable of effectively managing sensitive data.

Conclusion:

The webinar duly captured the implications, challenges, and promises that this landmark DPDP Act holds for individuals, businesses, and broader society. In our evolving digital world, this significant law guides responsible and secure data practices, maintaining a balance between innovation and individual privacy.

Access the webinar recording to explore the role of internal auditing in data privacy: https://www.youtube.com/watch?v=FVPecLmzx-Y