How do you assess the risks and benefits of sharing data with third parties?

To assess the risks and benefits of sharing data with third parties, first catalog your data assets. Evaluate risks to privacy, security, and competitive edge, and balance these against benefits like collaboration and revenue opportunities. Prioritize safeguarding confidential data and ensure strict compliance with data protection regulations and governance standards. This approach helps in making an informed decision that aligns with both strategic and regulatory requirements.

In addition to evaluating the sensitivity of the data assets, you also need to take at the third parties themselves. What contractual relationship do you have with them and what requirements does it extend to relation to data security? Does your privacy policy allow the sharing of personal information with them and for what purpose?

Data architecture (as one of the enterprise architecture layers) is the discipline that enables an organisation to take control of their data assets. A well established library of business information, data objects and data entities with their relationships mapped at both business and technical levels, enables organisations to understand the data landscape.

When assessing the risks and benefits of sharing data with third parties, it is crucial to have a systematic approach. Clearly define the purpose and relevance of data sharing. Evaluate risks such as data breaches and non-compliance while implementing measures to mitigate them, including data protection agreements and access controls. Consider the potential benefits, such as improved services or expanded capabilities, and ensure legal compliance. Transparent communication with affected individuals builds trust, and ongoing monitoring of third parties ensures adherence to data protection practices. By following this framework, organizations can make informed decisions, safeguard privacy, and leverage the advantages of data sharing.

The first step for assessing risk is to review the data that you have collected as an organization. This can be considered a Data Catalog where you document all the data that you have within the organization. Its important to also identify sensitivity for each data type. This sensitivity should be relative to the data that the organization collects and take into account GDPR definitions for sensitive/personal data. With this Data Catalog, you can then create a ROPA or Record of Processing Activities. This gives a more detailed explanation as to the data the organization has, how it was collected, where it goes in the organization and what legal basis the organization has for processing it.

Sharing data aims to enhance collaboration, efficiency, and innovation. Benefits include improved decision-making and new insights. However, risks like privacy concerns and data breaches must be carefully managed. It's crucial to assess the value gained, trustworthiness of partners, and ensure proper safeguards to achieve the goal effectively.

Clearly defined goals are paramount when engaging in data sharing initiatives. Whether the objective is to enhance collaboration, drive innovation, or improve efficiency, aligning your data sharing efforts with specific, measurable goals ensures that each interaction serves a purpose and contributes to the overall success of your business.

Sharing data with third parties carries risks such as data breaches, loss of control, and non-compliance with regulations like GDPR. In the semiconductor industry, the risk is higher due to the sensitivity of intellectual property, making Non-Disclosure Agreements (NDAs) critical for protecting proprietary information. While the benefits include improved services and innovation, organizations must carefully assess third-party security, ensure compliance with country-specific laws, enforce NDAs, and implement strong governance to safeguard data. Balancing these factors is key to managing data-sharing risks.

Having an end goal is important to consider in order to abide by two Privacy by Design Principles of data minimization and Positive Sum. Data minimization means that you are only sharing the minimum data necessary for the third party to achieve their desired analysis: Do you need full DOB or does Age suffice? Positive Sum means that the invasion of privacy resulting from this processing with overall have more of a benefit on the end user. We need to clearly know what the goals are so we can confidently say that the end user will benefit.

Evaluate data sharing goals to ensure alignment with organizational objectives. Assess the purpose, scope, and intended outcomes of sharing data with stakeholders. Clarify whether the goal is collaborative research, improved services, or strategic partnerships. Consider the benefits and potential risks, emphasizing data security, legal compliance, and value creation. Regularly review and adapt data sharing goals to stay responsive to evolving business needs and changing regulatory landscapes, fostering a dynamic and effective approach to data collaboration.

All of the decisions that you make around this risk should be documented and provide some justification. As with other things within an organization, the decisions that are made now should be documented for future use. The standards developed as you continue to use this process might change as the risk acceptance of the organization changes.

Acknowledging the potential risks associated with data sharing is a crucial aspect of any robust strategy. Consider factors such as data breaches, regulatory compliance, and reputational damage. By conducting a thorough risk assessment, businesses can proactively implement measures to mitigate potential challenges and safeguard sensitive information.

When considering your risks, something I notice often is that organisations don't conduct a risk assessment for each third party they share data with. This includes evaluating their data security practices, compliance records, and the potential impact on your business if a data breach occurs at their end.

The cloud platforms have made it much easier for organizations to share data with 3rd party partners. But that convenience does come with increased risk of data breaches because it is easier for hackers to get access to your data too. When the datasets to be shared contain PII/PHI or any other kind of sensitive data, special care is needed to ensure such data does not end up in the wrong hands. If it is not necessary to share the sensitive data elements, do not include them in the dataset. If you have to share such data, consider data encryption and data de-identification. When the data is encrypted, no one has access to it by default. You can then enforce controls to ensure only the intended users can access the sensitive data.

These risks span from data security vulnerabilities to compliance and privacy concerns, potential intellectual property infringements, and the threat of reputational damage. By conducting regular risk assessments, implementing robust security measures, ensuring compliance with regulations, and fostering a culture of data stewardship, we mitigate these risks while facilitating responsible and mutually beneficial data sharing partnerships.

Implementing stringent controls is fundamental to maintaining the integrity and security of shared data. Establish protocols for access permissions, encryption, and data anonymisation. Striking a balance between facilitating collaboration and safeguarding data integrity ensures that your organisation reaps the benefits of data sharing without compromising on security.

To implement effective data sharing controls, we enforce strict access controls based on roles, implement encryption for data protection, and employ techniques like data masking and anonymization to preserve privacy. We leverage secure data sharing platforms with built-in security features and establish clear agreements with third parties outlining responsibilities and security measures. Regular audits and monitoring ensure compliance and prompt detection of any vulnerabilities.

Share only the data that is necessary for the third party to fulfill their obligations. This will reduce exposure and limit the potential misuse of data.

Continuous monitoring is essential to gauge the effectiveness of your data sharing initiatives. Establish key performance indicators (KPIs) to assess the impact on business objectives. Regular evaluations allow for adjustments, ensuring that your data sharing practices remain aligned with evolving business needs and industry trends.

Monitoring and evaluating data sharing outcomes are critical steps to ensure the effectiveness and alignment of our initiatives with organizational goals. We utilize key performance indicators (KPIs) such as data accuracy, timeliness of sharing, compliance adherence, and the impact on business objectives to assess outcomes. Regular audits and reviews enable us to identify any issues or areas for improvement promptly.

This is not a set and forget if the data is critical to your business. There must be continuous monitoring and data updates shared to ensure that this risk is managed appropriately.

Specific to third party sharing – identify what data assets are included in specific data products. Data assets should not be shared piecemeal to third parties. Define tightly supervised data products (with release management) third parties obtain with governance and access controls in place. A data product approach benefits both your data sharing strategy and planning your data sharing controls.

In general, everyone within a company needs to be aware of the risks of sharing any and all data with anyone outside (and inside) of the organization. In my experience, implementing controls such as email blocking and audit trails seems to help mitigate some of the risk. Also, things like usage policies are not as effective as you would think. Therefore, the training and awareness is critical and should be offered frequently.

Remember you’re not starting from scratch nor is this a once off exercise. You need to assess what data do third parties currently have access to and whether this is appropriate to be shared with them.