Sushant Rai, Vice President of Product Management at Reltio
“On the surface, the concept of data sovereignty is simple. It refers to the idea that data is subject to the laws and governance structures of the country in which it is located. So if your data is stored in a given country, that country’s laws and regulations apply to that data—security, data protection, data privacy, and more. And data privacy regulations often apply based upon the residency of the data subject (the owner of the data) as well.
We know that data is an incredibly valuable asset that needs to be protected. It can contain sensitive personal data including health or financial information. Or proprietary business information including intellectual property. Or even government or defence secrets. Data breaches and unauthorised access can have severe consequences, including financial loss, reputational damage, and legal implications. So it’s no wonder that countries have a critical interest in ensuring that the data is protected from unauthorised access, theft, and other potential risks.
But applying data sovereignty regulations isn’t always straight forward. It can create challenges for organisations that operate across borders. One of the primary obstacles is the lack of uniformity in data sovereignty laws and regulations across different countries. Each jurisdiction may have its own set of rules and requirements regarding data protection, privacy, and storage, making it difficult for multinational companies to navigate and comply with all the applicable regulations. Some countries mandate that certain types of data must be stored within their borders, while others restrict or prohibit the transfer of data to foreign jurisdictions without adequate safeguards in place. These conflicting requirements pose a significant challenge for organisations with a global presence, as they need to ensure compliance with multiple and sometimes contradictory regulations simultaneously.
So, an organisation operating in multiple countries needs to comply with different data sovereignty laws by location—data protection and privacy laws, for example—significantly increasing administrative burden and costs. And with the explosion of data volumes and the growth of storage options and locations, how do you ensure that you are complying with applicable regulations and adequately safeguarding your data?
One key step is to ensure that data is stored in a location that complies with the relevant laws and regulations. This may involve working with cloud providers or other third-party vendors that can provide appropriate data storage solutions. •Another important step is to develop appropriate data management policies and procedures that comply with the relevant data protection laws and regulations.
Data sovereignty landscape is complex and ever-changing
Data sovereignty regulations vary by country, and they can be incredibly detailed and complex—spanning data privacy, data localisation, data residency, and more. To simplify our discussion, let’s look at a subset of those laws—data protection and privacy regulations such as the General Data Protection Act (GDPR). According to the United Nations Conference on Trade and Development (UNCTAD), currently 137 out of 194 countries have legislation to secure the protection of data and privacy. Not to mention that five U.S. states currently have similar laws.
So if your business is operating in several countries, the compliance burden can be all but crippling. Just for GDPR and similar regulations, the requirements are many—gathering and maintaining consent, protecting data subject rights, ensuring data minimisation and data portability, and more. And that’s without getting into the complexities of having multiple data processors in different locations. Furthermore, data sovereignty requires continuous monitoring and compliance management. As regulations change or new ones are introduced, organisations must adapt their policies and procedures accordingly.
Enabling data sovereignty with a global footprint
We are committed to helping organisations achieve data sovereignty across the globe. Our platform ensures that organisations can store and manage their data in compliance with relevant local laws and regulations. This includes having local data centres to ensure that data is stored in compliance with data localisation and residency requirements, each with robust data management policies and procedures to ensure that sensitive data is protected from unauthorised access. Reltio can protect sensitive data and comply with data sovereignty regulations, no matter where you operate.
Of course, not all data sovereignty regulations are the same or limited to data privacy. Many countries have restrictions on where data can reside and some even restrict the ability to view private data from outside the country. Regardless of the regulatory environment in which your business operates, we are committed to help you achieve and maintain compliance.”
