7 The risks
Like all process changes, advancing data analytics does involve taking on risks.
Risk managers should consider the following:
The EU General Data Protection Regulation (GDPR)
Any data processing or analysis that involves personal
data will fall under the new General Data Protection
Regulations, which will become law in the UK in May 2018.
The law brings in mandatory reporting of data breaches,
heavy fines and a recommendation for organisations to
appoint a Data Protection Officer. Risk managers should
address and control their organisation's response to this
issue, considering the impact of any new data collection
and analytics techniques. More information can be found in
Airmic's The EU General Data Protection Regulations: What
risk managers need to know.
The impact on cyber risk
Cyber risks continue to be quoted as top-of-mind concerns
for risk managers. As organisations use increasing data
sources and integrate data analytics into their processes,
the cyber risk will change. Risk managers can provide the
link between business strategy, data processing and IT
infrastructure, assessing the cyber risk accordingly. More
information can be found in Airmic's 'Understanding your
cyber risk and purchasing insurance'.
The need for the human element
Computers and algorithms operate on logic, which cannot
make sense of everything! All data analytics should include a
step where business managers review and evaluate output,
tempering the analytics with reality and common sense.
DRIVING THE DATA DIVIDE
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