With less than four months to go until EU's General Data Protection Regulation (GDPR) comes into force on 25 May 2018, only 12% of firms in Asia Pacific have a GDPR compliance plan in place, said EY which recently published its third biennial EY Global Forensic Data Analytics Survey.
The survey examined the responses of 745 executives from 19 countries and analyzed the legal, compliance and fraud risks global companies face and the use of forensic data analytics (FDA) to manage them, according to company.
While 78% of all respondents express increasing concern about data protection and data privacy compliance, only 33% of them said that they have a plan in place to comply with the EU legislation.
While the average response of those in Europe was more positive, with 60% indicating they have a compliance plan in place, there is still much more work to be done in other markets where significantly fewer companies indicated readiness for GDPR compliance including Africa and the Middle East (27%) and the Americas (13%), survey results indicate.
Higher FDA adotpion
When it comes to the use FDA in compliance and governane, there is a 51% increase in average annual spend on FDA per respondent compared with 2016, according to the report.
Companies have significantly developed beyond relying on the basic FDA tools of the last decade, with 14% of respondents saying that they are already using robotic process automation (RPA) to manage legal, compliance and fraud risks, and a further 39% stating they are likely to adopt RPA within the next 12 months, followed by artificial intelligence (AI) at 38%, EY said.
The survey also found that 42% of businesses believe that data protection and data privacy regulations have a significant impact on the design or use of FDA.
In addition, 13% of respondents indicated that they currently use FDA to achieve GDPR compliance, with more than half (52%) of the respondents indicating that they are currently in the process of analyzing exactly which FDA tools they would use to assist them with achieving compliance.
A shortage of FDA talent
While investment in people and skills is key to unlocking the full potential of FDA, , only 13% feel that their organization has the right technical skills in FDA, and only 12% believe they have the right data analytics/data science skills, EY observed.
“FDA is not just about technology, but about the people who manage that technology and how they use it to manage risks,” said Andrew Gordon, EY Global Fraud Investigation & Dispute Services leader. “While it’s encouraging to see that investment in advanced FDA is increasing, companies need to hire the right talent and invest in core skills such as domain knowledge and data analytics in order to be successful in managing their risk profile.”