Safeguarding Data with the Help of Regulators
The 2020 World Economic Forum reported that cyberattack is still one of the most pressing risks that industries face, especially going through the pandemic and digital migration of individuals and businesses. JPMorgan chase—one of the banking supergiants — alone spends 600 million dollars each year for cybersecurity.
There are other crimes that result in a data privacy breach. Now, industries make an effort to improve their own regulatory systems to prevent or at least diminish such cases as technological advancement is directly proportional to the growth of security systems risks.
Technological advancements revolutionize many organizations, particularly in the banking industry. However, great efforts in data security shall be accompanied by equal efforts in developing rules and regulations in managing data.
In a nutshell: Regulations
Regulation is a set of rules, requirements, and restrictions that enables institutions to operate orderly. Regulation forms a system of policies and guidelines that aims to provide mutual understanding between parties and generally meet a consensus.
Regulations in Digital Transformation
In the age of technology, personal data can be easily accessible regardless of one's location. It also enabled information to be easily mobilized, shared, and transferred, providing convenience to individuals and businesses.
With the increased digitization of systems, various countries implement strict policies to employ the best data security.
Data Security Regulators
The following countries follow a regulatory system in safeguarding data:
United States of America (USA)
The USA has the Financial Industry Regulatory Authority (FINRA) that oversees the regulating system of the brokerage industry in the financial market. It has the power to fine and penalize brokers and brokerage firms once rules are violated.
FINRA ensures that ethical standards are followed in the industry such as that securities are enforced properly without any misleading information, investment product satisfies the needs of the receiver, and investors are informed about the risks of securities prior the purchase.
The self-regulatory agency also provides tools like BrokerCheck that assist professionals to background check brokers and brokerage firms. It also connects them to legitimate investment firms and advisors.
In its health industry, the Health Insurance Portability and Accountability Act (HIPAA) of 1996 is responsible for protecting patients’ health information. Any entity which handles personal health records or information is subjected to their privacy rule.
HIPAA guarantees compliance, confidentiality, and integrity of its covered entities. It secures information through the detection of possible threats and is keen on details being disclosed.
Entities it covers include healthcare providers, health insurance companies, healthcare organizations, healthcare programs (e.g., Medicare, Medicaid, etc.), and healthcare clearinghouses.
European Union (EU)
The General Data Protection Regulation (GDPR) of Europe of 2018 is said to be one of the strictest security laws in the world. EU recognizes the need for modern data security, especially in the age of technology with the assertive demands of Europeans to have equal data protection across the union.
GDPR operates with its key principles revolving around integrity, fairness, and accountability with accuracy, data minimization, and data storage optimization. GDPR recognizes the importance of data privacy as part of basic human rights.
More than the protection of personal information, this regulation gives the European people ease, security, and optimization in the collection and use of their data.
Although a technological champion, Japan's government still faced turmoil with the pandemic because of its traditional systems, particularly in the business sector, such as the use of Hanko seals when entering binding agreements. It changes the way the super country plans to move forward. Japan is revamping the local and central government’s computer and information systems.
The country's digitization is a collective effort of the local and central government, agencies, and enterprises to introduce regulations with uniform policies, increasing data protection, and improving quality services. This will create a system that will allow individuals to choose digital services suited for them.
In retrospect, with Japan having one of the fastest internet speeds that connect almost the whole of their population, embracing digital in governmental operation is not far-fetched. It will be seen as effective in the coming years. This envisions “human-centered digitalization” while also prioritizing its citizens with “no one left behind.”
“The Fine City,” Singapore is known to be one of the strictest countries in terms of imposing rules and regulations. And, their banking systems and regulations are not ones that can be messed with. The country manages to secure high rankings in global finance and is one of the spearheads in Asia.
The country's Banking Secrecy Law is particular in protecting customer’s information. It prohibits the disclosure of data of any Singaporean banks and foreign accredited banks in the country. It also regulates all the banks and ensures their compliance.
This law implements equal protection and level of confidentiality to banking customers and fluidly allows the increase of the level of confidentiality when necessary.
Under it, there are certain exemptions in disclosing customer’s information, including securitization of assets, securitization of mortgage loans, and outsourcing of data. This can only be possible upon request and must undergo a process.
Failure to comply with any of the conditions provided in this act is subject to serious charges—levy and/or imprisonment.
The regulations in data security are recognized among countries such as the abovementioned. Fused with technological advancement, they can help different industries operate and mobilize information in safety. Technology plays an important role in the way these regulations are crafted and implemented today.