Businesses across the globe have been facing an increasingly complex and stringent regulatory environment over recent years—particularly where data protection is concerned. With regulatory authorities adopting more rigorous measures to ensure businesses are upholding ethical practices, safeguarding sensitive data, and adhering to reporting requirements, the pressure to stay compliant has never been greater. Managed Data Services (MDS) have become essential in this context, providing the necessary tools and expertise to help businesses navigate these challenges effectively.
For organisations, particularly those in highly regulated markets like insurance and the financial services sector, this means navigating an evolving maze of rules and regulations to protect their customers’ private information. While this can seem daunting for firms when left to their own devices to decipher and implement new regulations, MDS are helping to revolutionise compliance for many industries across the globe.
Here, we will explore five ways Managed Data Services can help you supercharge your compliance strategy.
1. Centralises data for simple and secure access and control
Data fragmentation is the biggest barrier facing data leaders, with research finding that nearly 80% of organisations store more than half of their data in hybrid and multi-cloud infrastructures, and 79% use more than 100 data sources. With data silos hindering the potential for different departments and teams to easily share or access critical information, firms that are neglecting to streamline and centralise their data will be facing slower decision-making, as well as lower productivity, profitability, and ultimately, morale. But this is where MDS can help.
When firms leverage MDS, they can consolidate their existing and incoming data into a unitary (or a few connected) platforms, removing the complexity of managing multiple disparate data systems. Many of these systems can also help enhance firms’ compliance with data security and storage regulations, like the UK’s GDPR, with tools that can handle subject access requests (SARs) and data erasure whilst maintaining an audit trail. Providers also typically offer solutions to enable data to be transferred according to GDPR rules for international data transfers, including using standard contractual clauses and ensuring data is stored within countries with an adequate level of protection.
2. Secures data storage, encryption, and disposal
Among the key components of maintaining data security and complying with GDPR, firms need to know how to correctly and safely store, encrypt, and dispose of data.
MDS centralise and store data in secure, isolated, compliant environments, ensuring that sensitive data is separated and that access is restricted based on assigned user roles. Providers can implement robust firewalls, as well as intrusion detection and prevention systems, to add an extra layer of defence against unauthorised access or cyber threats. MDS systems will also often include integrity checks and logs to validate that no data has been tampered with during storage.
These systems also ensure end-to-end encryption to ensure data is shielded while stored and during transmission, only being able to be accessed by authorised entities with the proper decryption keys. MDS providers also implement strong encryption standards, including ICO’s recommended encryption algorithms.
When the time comes to get rid of data, MDS are often equipped with automated systems that ensure data is deleted in accordance with GDPR retention policies and that any data is overwritten multiple times to ensure it can’t be recovered.
3. Automates data backup and recovery
Data recovery and backup are critical components of any organisation’s data management strategy, ensuring data is adequately protected and can be restored in the event of loss or disaster. On top of this, GDPR requires that personal data be protected and retrievable, with firms that fall short of these requirements vulnerable to hefty fines and legal action, which can also lead to reputational loss.
MDS help firms remain compliant with GDPR and other legal frameworks by automating the process, reducing human error, improving efficiency, and maintaining consistent protection for sensitive and critical data. These platforms often have features including continuous data protection, which backs up data as it’s created or modified in real-time, scheduled backups, and backup retention policies that ensure old backup data is automatically archived or deleted after a specified period. Plus, as many providers often use cloud-based storage for backup, MDS reduce data redundancy and the risk of data loss.
4. Monitors and reports in real-time for compliance audits
Compliance isn’t just a once-and-done requirement —it’s something firms must continuously adhere to. To ensure this, MDS providers have incorporated various tools and practices. This includes adopting a privacy-first approach that means data protection and privacy measures are at the crux of every stage of the data lifecycle, from collection to storage and disposal. Similarly, providers enforce data minimisation to ensure only the necessary amounts of data are collected and retained, which is in line with regulatory requirements.
For compliance audits specifically, MDS implement robust logging mechanisms that capture and store records of data access, processing, and changes, as well as continuously monitoring data processing activities within internal systems and backup processes. These ensure firms can prove they have and are actively implementing compliance measures during any audits and investigations and can help reduce the likelihood of penalties.
5. Provides opportunity for expert advice and guidance
Working with an MDS provider often means you will also access ongoing training and awareness programmes specially designed for your employees. These support the education of your employees with regard to GDPR principles and other relevant data management legislation and obligations your firm is bound by. By gaining exposure to this additional training, you can help prevent accidental breaches and ensure sound and consistent compliance knowledge across the business while slashing costs associated with hiring other third-party providers to provide training.
But with so many MDS providers out there, we know it can be difficult to choose the right one for you. That’s where working with a trusted consulting team can be beneficial. With experts on your side who know MDS like the back of their hand, firms can gain greater peace of mind and confidence over their compliance processes.
Compliance can be a minefield, but it doesn’t have to be. With Managed Data Services, you can take the complexity out of compliance, letting automation and innovation lead the way.
Want to find out more? Our Asset and Wealth Management team are experts in Managed Data Services, with extensive experience pairing firms with the right MDS provider for them and their compliance needs. Get in touch with us today!
