Corporate India’s journey toward digital transformation has introduced new risks, especially around data protection and data privacy states EY’s Global Forensic Data Analytics Survey 2018.
The survey highlighted that 70% of Indian respondents see data protection and data privacy compliance as increasing areas of concern; while 46% are worried about cyber breach and insider threats.
The role of advanced Forensic Data Analytics (FDA) and emerging technologies will continue to be pivotal to mitigate escalating digital threats. According to the India findings, 71% had effectively utilized FDA in cases of data protection and privacy, 87% for financial statement fraud; against the global average of 73% and 77% respectively.
The role of the C-suite and Board is instrumental for the success of FDA. However, 53% of Indian survey respondents highlighted a need to improve management’s awareness of the benefits of FDA, higher than the global average of 45%.
Andrew Gordon, EY Global Fraud Investigation & Dispute Services leader said, “The pace of regulatory change continues to accelerate and the introduction of data protection and data privacy laws, such as GDPR, are major compliance challenges for global organizations. But businesses that adopt FDA technologies can achieve significant advantages, benefitting from more effective risk management and increased business transparency across all of their operations.”
Arpinder Singh, Partner and Head – India & Emerging Markets, Fraud Investigation & Dispute Services, EY said, “Emerging markets, especially India are driving the digital data revolution through rapid innovation and adoption of new technologies. However, the current business environment demands reassessing the risk landscape as a result of new regulations around data protection and data privacy, increased multi-jurisdictional co-operation and rising digital vulnerabilities. This is an apt time for management to maintain the sanctity of data, and derive the true benefits of FDA by integrating it within their compliance programs for increased return on investment.”
2018 will see greater investments in emerging technologies and Indian organizations are geared up to adopt emerging technologies such as Artificial Intelligence (63%), Robotics Process Automation (53%), Blockchain and Distributed Ledgers (50%), and User Behavioural Analytics (66%) this year. These would assist companies in continuous monitoring, policy adherence, and bolster business transparency. These tools can offer companies the flexibility to create customized risk programs in line with their unique risk profile and culture.
The survey is conducted by EY’s Fraud Investigation & Dispute Services practice and encapsulates how digital transformation is driving advancements in FDA that can help mitigate fraud and compliance risks faced by businesses.