{"id":35912,"date":"2020-06-16T04:05:30","date_gmt":"2020-06-16T08:05:30","guid":{"rendered":"https:\/\/www.kaspersky.com\/blog\/?post_type=emagazine&#038;p=35912"},"modified":"2022-08-04T07:45:19","modified_gmt":"2022-08-04T11:45:19","slug":"data-security-supply-chain","status":"publish","type":"emagazine","link":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/data-security-supply-chain\/35912\/","title":{"rendered":"Where you should tighten the privacy links in your data supply chain"},"content":{"rendered":"<p>A chain is only as strong as its weakest link. Your business is responsible not just for upholding your customers\u2019 data privacy inside your organization. Everyone who uses the data on your behalf must be as privacy-conscious as you. Those data-handling partners may include accountancy, telecommunications and cloud storage, even office security and maintenance contractors.<\/p>\n<h2>Personal data regulation takes privacy very seriously<\/h2>\n<p>There\u2019s a legal reason strong privacy links in your supply chain matter, as well as a moral one. Privacy is at the core of the European Union\u2019s stringent <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/business-innovation-privacy\/35274\/\" target=\"_blank\" rel=\"noopener nofollow\">General Data Protection Regulation (GDPR.)<\/a> It applies to personal data processed by organizations in the European Economic Area (EEA) and those outside that offer goods or services to those within.<\/p>\n<p>GDPR is the gold standard for data protection. Many other legislative frameworks have used it as a model, like <a href=\"https:\/\/oag.ca.gov\/privacy\/ccpa\" target=\"_blank\" rel=\"noopener nofollow\">California Consumer Privacy Act (CCPA,)<\/a> Brazil\u2019s <a href=\"https:\/\/gdpr.eu\/gdpr-vs-lgpd\/\" target=\"_blank\" rel=\"noopener nofollow\">Lei Geral de Prote\u00e7\u00e3o de Dados (LGPD)<\/a> and the proposed <a href=\"https:\/\/www.oaic.gov.au\/privacy\/the-privacy-act\/\" target=\"_blank\" rel=\"noopener nofollow\">strengthening of Australia\u2019s Privacy Act 1988<\/a>. Complying with GDPR won\u2019t always mean you\u2019re complying with other jurisdictions\u2019 regulations, so if you\u2019re sending personal data across borders, get local advice.<\/p>\n<p>GDPR is built around defining <a href=\"https:\/\/ico.org.uk\/for-organisations\/guide-to-data-protection\/guide-to-the-general-data-protection-regulation-gdpr\/key-definitions\/controllers-and-processors\/\" target=\"_blank\" rel=\"noopener nofollow\">what it means to be a data controller or data processor<\/a>, and what each must do. A controller decides what personal data to collect, gathers it and decides how to use it. A processor receives personal data from another party and processes it as directed, but doesn\u2019t decide how it\u2019s used. The law says controllers must use only processors with technical and organizational structures that ensure data privacy.<\/p>\n<p>Data breaches mean business disruption and <a href=\"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/security-bytes-privacy-reputation\/32193\/\" target=\"_blank\" rel=\"noopener nofollow\">reputational damage<\/a>. Then there\u2019s the money. Under GDPR, controller and processor may face huge fines: 20 million euro or up to four percent of the previous year\u2019s turnover \u2013 whichever is greater. In 2019, <a href=\"https:\/\/www.kaspersky.com\/blog\/british-airways-fined\/27580\/\" target=\"_blank\" rel=\"noopener nofollow\">British Airways faced a record-breaking 183 million British pounds for a breach<\/a>.<\/p>\n<h2>Privacy holes affect businesses of all sizes<\/h2>\n<p>Although GDPR came into force in 2018, many companies still aren\u2019t paying attention, says Jamel Ahmed of UK data privacy consultants <a href=\"https:\/\/www.kazient.co.uk\/\" target=\"_blank\" rel=\"noopener nofollow\">Kazient Privacy Experts<\/a>. \u201cIt\u2019s true for large enterprises to small- to medium-sized businesses. I often find bigger companies have excellent <a href=\"https:\/\/ico.org.uk\/for-organisations\/guide-to-data-protection\/guide-to-the-general-data-protection-regulation-gdpr\/security\/\" target=\"_blank\" rel=\"noopener nofollow\">internal data security<\/a> processes. The compliance people will ask the right questions and demand evidence. But along the supply chain, there\u2019s a massive gap relating to personal data. It\u2019s to do with a lack of understanding, and limited awareness and expertise.\u201d<br>\n<img decoding=\"async\" class=\"aligncenter size-large wp-image-35917\" src=\"https:\/\/media.kasperskydaily.com\/wp-content\/uploads\/sites\/92\/2020\/06\/16033641\/160_2-1024x768.jpg\" alt=\"data security supply chain\" width=\"1024\" height=\"768\"><br>\nPeter Wright agrees. He\u2019s Managing Director of UK\u2019s <a href=\"https:\/\/www.digitallawuk.com\/\" target=\"_blank\" rel=\"noopener nofollow\">Digital Law<\/a>, specializing in online, data and cyber issues. \u201cIt\u2019s been overlooked in the past. And while there\u2019s more awareness now, that doesn\u2019t mean it\u2019s enough.\u201d<\/p>\n<blockquote><p>Your data handling shouldn\u2019t just satisfy legal and regulatory requirements. It should also follow best practice and ethics. If you\u2019re remiss, the consequences can be severe.<\/p>\n<cite><p>Peter Wright, Managing Director, Digital Law <\/p><\/cite><\/blockquote>\n<h2>How to tighten the links<\/h2>\n<h3>1.\u00a0\u00a0\u00a0 Ask data-processing suppliers the right questions<\/h3>\n<p>Do your due diligence when you start a relationship with a supplier that involves passing data. Ahmed says, \u201cAs a minimum, check new suppliers are registered with UK\u2019s <a href=\"https:\/\/ico.org.uk\/ESDWebPages\/Search\" target=\"_blank\" rel=\"noopener nofollow\">Information Commissioner\u2019s Office (ICO,)<\/a> or your country\u2019s equivalent. Check they have good policy and practice. Check they understand their data privacy obligations and responsibilities.<\/p>\n<p>\u201cDo they have a dedicated data protection officer (DPO,) and what are their qualifications and experience? I\u2019d also want to see evidence they\u2019ve spent time developing good practices rather than just complying with a checklist they\u2019ve downloaded from somewhere.\u201d<\/p>\n<h3>2.\u00a0\u00a0\u00a0 Have a contract that goes above and beyond<\/h3>\n<p>The GDPR says there must be a written contract between data controller and processor, and <a href=\"https:\/\/ico.org.uk\/for-organisations\/guide-to-data-protection\/guide-to-the-general-data-protection-regulation-gdpr\/contracts-and-liabilities-between-controllers-and-processors-multi\/what-needs-to-be-included-in-the-contract\/\" target=\"_blank\" rel=\"noopener nofollow\">what the contract terms must be<\/a>, including type of data, how long it may be kept for and the nature and purpose of data processing. Data privacy experts think agreements between controller and processor should go further, drilling down to detail, showing the controller is giving enough oversight.<\/p>\n<h3>3.\u00a0\u00a0\u00a0 Have a plan in place for what the controller does when there\u2019s a breach<\/h3>\n<p><a href=\"https:\/\/ico.org.uk\/for-organisations\/guide-to-data-protection\/guide-to-the-general-data-protection-regulation-gdpr\/personal-data-breaches\/\" target=\"_blank\" rel=\"noopener nofollow\">Under GDPR, all businesses handling data must keep a breach log<\/a>, recording details of security incidents. Controllers should expect to be able to see anything in the processor\u2019s log that relates to its data. Ahmed thinks businesses should go further again, having a detailed plan for what the processor must do if a data breach happens.<\/p>\n<p>Ahmed goes on to say, \u201cThe GDPR obliges the processor to tell the data controller as soon as they become aware of a breach. But the contract needs to explain what constitutes a breach and what \u201cas soon as you become aware\u201d means.\u201d<\/p>\n<h3>4.\u00a0\u00a0\u00a0 Bake risk management into your operations<\/h3>\n<p>Having a watertight supplier contract is just the first step. Wright and Ahmed stress data controllers should manage risk along the supply chain in a proactive and ongoing way. That means regular risk audits and going back to check data policies with clients and suppliers when circumstances change.<\/p>\n<p>Wright advises, \u201cRegulators look at how businesses show compliance. They don\u2019t want you to hold up a contract audit that says, \u201cOh yes, we looked at this two years ago and it was fine.\u201d They want to see continuous updates. If the worst happens and there is a breach of personal data, they want to see evidence the business did all it could to comply with legislation.<\/p>\n<p>\u201cYou need to show you\u2019ve looked regularly at your risk register and updated it after meetings. If a supplier changes its terms, show you investigated, asked questions and reviewed their answers. Regulators want to see the regular auditing, questioning and managing of risk baked into your operations.\u201d<\/p>\n<h3>5.\u00a0\u00a0\u00a0 Be wary of how behavior changes may impact privacy<\/h3>\n<p>Our changing ways of life and work mean we need to be vigilant about what\u2019s happening with our data. Wright says, \u201cHomeworking has been adopted in ways never envisaged when IT systems were set up. You may have signed up to terms in 2017 and reviewed them during your 2018 GDPR due diligence, but the supplier may have since changed systems.<\/p>\n<p>\u201cSay your teleconferencing provider, because of increased demand, says, \u201cWe\u2019re revising our terms because our servers are no longer in the EU. We have a new web services provider, but we can\u2019t confirm where your data is processed. Hope that\u2019s OK.\u201d\u201d<\/p>\n<p>Businesses should insist on full disclosure of what\u2019s changed and whether there are knock-on effects on privacy. \u201cBig questions need answering,\u201d says Wright. \u201cWhere\u2019s your data going? Is it following GDPR? Are they transferring business call recordings to servers outside the EEA? What security is in place? Is the data encrypted end to end?\u201d<\/p>\n<h3>6.\u00a0\u00a0\u00a0 Consider everyone in your supply chain<\/h3>\n<blockquote><p>One of the greatest pitfalls is not realizing your data is passed along the supply chain at all.<\/p><\/blockquote>\n<p>The golden rule is to assume every business you work with is a data processor. Otherwise, lapses can happen, even with the most sensitive personal information \u2013 material classified as <a href=\"https:\/\/ico.org.uk\/for-organisations\/guide-to-data-protection\/guide-to-the-general-data-protection-regulation-gdpr\/lawful-basis-for-processing\/special-category-data\/\" target=\"_blank\" rel=\"noopener nofollow\">\u201cspecial-category data\u201d under the GDPR<\/a>. That\u2019s anything that could be used for unlawful discrimination such as ethnic origin, sexual orientation, health records or biometric data.<\/p>\n<p>Ahmed has a cautionary tale. \u201cOne of my clients looked for third-party software to do psychometric testing for graduate recruitment. Throughout the procurement, they didn\u2019t realize this involved special-category data under GDPR. There was potential for serious repercussions in failing to assess the data protection impact.\u201d<\/p>\n<blockquote><p>In the age of big data, ignorance is never a defense.<\/p><\/blockquote>\n<p>If personal data is in your possession, you must stay up-to-date with legislation, but also ethics and best practice. Raise awareness of risks and responsibilities, inside and outside your organization. Doing so will reduce the chance of a data breach and ensure your customers know you\u2019re looking after their interests.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Businesses of all sizes aren\u2019t paying enough attention to how their partners handle personal data. It\u2019s time to start asking the right questions.<\/p>\n","protected":false},"author":2583,"featured_media":35916,"template":"","coauthors":[3833],"class_list":{"0":"post-35912","1":"emagazine","2":"type-emagazine","3":"status-publish","4":"has-post-thumbnail","6":"emagazine-category-data-and-privacy","7":"emagazine-tag-data-security","8":"emagazine-tag-gdpr","9":"emagazine-tag-supply-chain"},"hreflang":[{"hreflang":"x-default","url":"https:\/\/www.kaspersky.com\/blog\/secure-futures-magazine\/data-security-supply-chain\/35912\/"},{"hreflang":"en-us","url":"https:\/\/usa.kaspersky.com\/blog\/secure-futures-magazine\/data-security-supply-chain\/22625\/"},{"hreflang":"en-gb","url":"https:\/\/www.kaspersky.co.uk\/blog\/secure-futures-magazine\/data-security-supply-chain\/20745\/"},{"hreflang":"pt-br","url":"https:\/\/www.kaspersky.com.br\/blog\/secure-futures-magazine\/data-security-supply-chain\/16390\/"}],"acf":[],"_links":{"self":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine\/35912","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/emagazine"}],"about":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/types\/emagazine"}],"author":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/users\/2583"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media\/35916"}],"wp:attachment":[{"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/media?parent=35912"}],"wp:term":[{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.kaspersky.com\/blog\/wp-json\/wp\/v2\/coauthors?post=35912"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}