Compliance Risks in Emerging Technologies

Emerging technologies present businesses with major challenges in regulatory compliance and risk management. When used effectively, new technologies allow companies to meet compliance requirements, but these technologies carry large risks if their implementation is not in line with legal requirements. Despite these challenges, Syncfusion handles the risks of new technologies by focusing on security, ethical practices, and continuous monitoring.

What is compliance risk?

Compliance risk refers to the chance that an organization could face legal penalties, financial losses, or damage to its reputation due to not following laws, regulations, industry requirements, or its own internal rules. This can come from a company itself not adhering to regulations, but effective management of third-party vendors is crucial as well to ensure outsourced aspects of the business are in line with regulatory requirements.

What are emerging technologies?

Emerging technologies are advances in technology that are still developing and whose full impacts are unknown. They often change the way industries operate and how businesses create value.

Deeper dive into emerging technologies: AI, Biometrics, and Cloud Computing

A few emerging technologies have large implications for businesses in terms of compliance risks. Syncfusion leverages its Network Team, Legal Team, and Regulatory Compliance Team to effectively navigate these changes and mitigate their risks.

Artificial Intelligence (AI)

Artificial Intelligence encompasses machine learning, deep learning, and natural language processing. Many businesses are eager to utilize AI to make certain processes more efficient, and while that is great, there are significant considerations for businesses to be aware of.

The use of AI within business operations often requires the input of confidential information, thus increasing the risk of unauthorized data processing or transfers. In turn, this might increase the risk of violating numerous data privacy laws, depending on business locale and legal requirements.

Syncfusion ensures that AI systems are fair, interpretable, and compliant with regulations like the General Data Protection Regulation (GDPR). Further, Syncfusion requires its employees to use enterprise accounts when accessing AI so that information entered by employees is protected. Syncfuion’s Legal Team, in coordination with the Network Security Team and Regulatory Compliance Team, reviews all agreements, technical details, and internal processes to ensure its use of AI is in line with legal requirements. When utilized the right way, AI results in efficient operations and assists in meeting customer requirements.

Biometrics

Biometrics can be considered an incredible advancement in technology. They detect an individual’s unique qualities to establish identification. Companies wishing to implement biometrics need to be aware of significant risks. They may need to comply with GDPR, CCPA, and BIPA stipulations on biometric data.

If collecting biometrics for business purposes, even if your business is only collecting biometric data on its employees, your company is collecting sensitive, personal information. This could include biometric fingerprint access to secure office facilities or movement trackers to ensure employee productivity.

Syncfusion adopts biometrics, upholding stringent compliance protocols, to secure access to our office facilities. Using biometrics allows us to strictly control access while adhering to our information security program. Our Network Security Team ensures the technical elements are in line with industry standards, while our Legal Team ensures the technical aspects are in line with legal requirements. Biometrics usage is handled transparently so that all employees consent and know why this information is being collected.

Cloud Computing

Cloud computing offers scalable resources and services over the internet. It enhances flexibility and reduces operational costs, data security risks, and jurisdictional issues while increasing privacy. Organizations must use cloud providers that comply with regulations and store and process data in accordance with legal requirements.

The use of cloud computing to process data, whether internal or external, needs to be reviewed carefully, from cryptographic measures to reviewing the locale of data centers to know that the physical location is in line with your company’s needs.

Your organization may largely be dependent on data centers. If so, it is important to ensure proper planning in case operations are disrupted. Syncfusion utilizes cloud computing to assist with development and hosting. We minimize the risks associated with our cloud services through proper technical implementation, business continuity and disaster recovery planning, regular backup and restoration testing, and legal review.

Conclusion

To remain compliant, minimize risks, and maintain a reputation of trust among customers, companies must continuously evaluate their usage of emerging technologies. First, businesses need to be aware of their compliance requirements. From there, it is important to leverage teams that can implement these requirements. Syncfusion’s Legal Team and Network Team lead a culture of compliance and transparency internally and externally.

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