The Manufacturer’s Guide to Maturing Your Privacy and Data Protection Program: Part 3

 

With cyber attacks on the rise, and manufacturers collecting and using intent data to provide a more robust customer experience, security measures are more important than ever. Building and maturing a privacy and data protection program is crucial for modern manufacturers, especially as they continue to evolve their Industry 4.0 initiatives and leverage larger volumes of data in the process. However, maintaining compliance is no easy task in today’s highly regulated landscape, with new rulings and updates issued by various regulatory bodies on a regular basis.

It is not enough to set and forget a privacy and data protection program. Instead, manufacturers must foster a culture of compliance that builds trust with stakeholders.

In Part II of our checklist, we offered guidance for manufacturers seeking to mature their existing privacy and data protection programs. Once manufacturers have taken this guidance, it’s time to optimize their programs to support continual enhancements to their privacy and data protection positioning.

Optimizing the Program

• Has your company automated privacy and data protection processes? Automating processes can improve efficiency and reduce manual errors. Automation can be applied across multiple privacy and data protection functions and needs, including the customer data deletion process, request receipt acknowledgement, data source identification and mapping, online data processing consent, Privacy Impact Assessment (PIA) and vendor assessment program improvements, data subject request processing, and more.
• How well do your teams and systems work together? At this stage, you should have already formed a Data Protection Committee, as well as a multidisciplinary team focused on privacy and data protection. But silos may still exist across functions and around specific technology tools. Identifying and breaking down these silos promotes transparency and flexibility.
• Have you considered the impact of AI laws on internal processes? According to our 2024 Manufacturing CFO Outlook Survey, 47% of manufacturers are increasing spending on artificial intelligence (AI) and machine learning as they seek to mature their Industry 4.0 programs. As manufacturers increasingly experiment with AI, they must remain compliant with emerging regulations like the European Union (EU) AI Act, which could impact U.S. manufacturers with suppliers or customers in the EU. As the regulatory landscape catches up to emerging technology, manufacturers must continually review or audit existing processes to maintain compliance.
• Is your company taking a risk-based approach to the use of marketing and advertising technology? Consent management, segmentation, preference management, security, and efficiency are important considerations when implementing marketing and advertising technologies. These tools tend to over collect data and leak data from one platform to another. They may also inadvertently promote the violation of a user’s ability to opt-out or provide consent, while exposing customer data to a greater risk of breaches. Consider implementing a process that requires a Data Protection Impact Assessment (DPIA) before leveraging these technologies. If using a third-party vendor for these tools, consider whether these companies are holding themselves to the same data privacy and protection standards as your organization. Key questions to ask include:
  • What are the vendor’s protocols for cross-border data transfers? Can that data be transferred lawfully?
  • Does the vendor have a set process to identify and remediate algorithmic biases to avoid discriminatory outcomes?
  • What are the vendor’s policies for data retention periods? Can data really be stored for the length of time advertised?
• Do you review your program on an annual basis and have internal audit teams review aspects of the program? Ongoing compliance monitoring is always necessary. This means not only refining internal processes and frameworks, but also educating employees to stay current on regulatory changes that could impact company policies. When its privacy and data protection program has been updated in accordance with best practices, an organization is better prepared to consider and address the implications of applicable laws, industry standards, and key program principles.

Progress Over Perfection

This checklist can help manufacturers optimize their privacy and data protection programs. The key to an optimized program is achieving one goal above all else: Moving the manufacturer from a compliance-based organization to a trust-based organization.

Manufacturers must remember that there is no such thing as a “perfect” or “finished” privacy and data protection program. These programs need to be continually reassessed and revisited to ensure the organization remains in compliance and maintains trust with key stakeholders. The best program is one that grows and evolves with the organization and the regulatory landscape so you can feel confident in your privacy and data protection positioning.

Written by Bill Pellino and Karen Schuler. Copyright © 2024 BDO USA, P.C. All rights reserved. www.bdo.com