Achieving Dodd-Frank Section 1071 Compliance: How Kenway Consulting Can Help Your Financial Institution Succeed

In the evolving regulatory landscape, compliance is more than a mandate—it's an opportunity to drive transformation. The Dodd-Frank Section 1071 regulation, effective between 2024 and 2026, introduces a new layer of complexity for financial institutions, requiring detailed reporting on lending practices to promote transparency and equity for women-owned, minority-owned, and small businesses.

For many institutions, meeting these requirements feels daunting. How do you implement a scalable, cost-effective solution that ensures compliance while supporting future growth? At Kenway Consulting, we specialize in turning challenges into opportunities. This blog outlines actionable steps for achieving Section 1071 compliance, backed by insights from a recent project with an international bank.

Understanding the Dodd-Frank Section 1071 Regulation

The Dodd-Frank Section 1071 regulation mandates the covered financial institutions collect and report detailed information on small business loan applications, adding an additional level of detail and compliance requirements for banks, credit unions, and nonbank lenders. Aimed at fostering transparency and equity, this regulation emphasizes non-discriminatory lending practices, particularly for women-owned and minority-owned businesses. Effective between 2024 and 2026, Section 1071 requires financial institutions to gather up new key data points on small business credit applications, from loan terms and ownership demographics to pricing information, and report this data to the Consumer Financial Protection Bureau (CFPB) for regular oversight.

Key Provisions of 1071 Regulation:

The Challenges Institutions Face

For many institutions, the journey to compliance includes overcoming significant challenges:

  1. Regulatory Pressure: Deadlines for compliance loom large.
  2. Data Complexity: Managing sensitive data securely across decentralized systems.
  3. Scalability Needs: Balancing immediate needs with future growth.
  4. Cost Constraints: Finding a solution that doesn’t break the bank.

How Kenway Consulting Tackled the Problem

When a leading international bank approached Kenway, they faced all these challenges. The stakes were high—they needed a solution fast, one that was scalable, cost-effective, and aligned with their unique operational needs. 

Assessing the Options

Kenway evaluated two Salesforce-based approaches to support Section 1071 compliance: Salesforce Survey and Salesforce Experience Cloud leveraging OmniStudio in Financial Services Cloud (FSC).

Salesforce Survey emerged as a strong choice for institutions prioritizing simplicity and cost-effectiveness:

For institutions seeking advanced functionality, Salesforce Experience Cloud leveraging OmniStudio in FSC offered robust scalability and validation options:

Tailoring the Solution

Kenway recommended Salesforce Survey, combined with Salesforce Marketing Cloud for survey distribution and tracking. This approach prioritized:

Steps to Implement a Scalable Compliance Solution

For financial institutions embarking on their compliance journey, the following roadmap can help ensure success:

  1. Assess Your Needs
    • Identify the scope of your compliance requirements.
    • Evaluate your current systems for gaps in data collection, reporting, and security.
  2. Choose the Right Technology
    • Select a platform aligned with your budget, functionality, and scalability needs.
    • Salesforce offers flexible options, from basic surveys to advanced systems like Experience Cloud.
  3. Streamline Data Collection
    • Implement tools that automate data entry, reduce errors, and ensure consistency.
    • Incorporate built-in tracking to monitor compliance progress.
  4. Strengthen Security Protocols
    • Define robust access controls and data retention policies.
    • Use encryption to protect sensitive demographic and loan data.
  5. Plan for Scalability
    • Design a solution that adapts to evolving regulatory demands and business growth.
    • Include pathways for future upgrades to more advanced systems.
  6. Partner with Experts
    • Engage consultants with experience in financial services and compliance to guide your implementation.

How Kenway Can Help

At Kenway Consulting, we bring deep expertise in compliance, data management, and Salesforce solutions to every project. Beyond system implementation, our comprehensive services include:

Achieve Compliance with Confidence

Section 1071 compliance doesn’t have to be overwhelming. With the right approach and a trusted partner, you can transform regulatory requirements into opportunities for growth and innovation.

At Kenway Consulting, we’re committed to helping financial institutions achieve their compliance goals while positioning themselves for future success. Let’s work together to create a solution tailored to your unique needs.

Contact us today to learn how Kenway can help you navigate Section 1071 compliance with ease and confidence.

Understanding the Role of Good Data in Your ESG Strategy

Environmental, social, and governance (ESG) strategies are now central to doing business. Investors, customers, and the public at large all want to work with companies that follow socially responsible practices. ESG plans have spiked in popularity in recent years, spurred by public and regulatory pressure for businesses to demonstrate their commitment to corporate responsibility. 

A growing number of investors are adopting an ESG investing strategy. Ninety-six percent of chief investment officers say that ESG initiatives can play a role in investment decisions. And a significant majority say they’re willing to pay a premium for companies that demonstrate a connection between the corporate ESG strategy and financial performance. 

Regulators are also showing increased interest in ESG plans. The European Union enacted the Corporate Sustainability Reporting Directive (CSRD) in early 2023 and the Securities and Exchange Commission (SEC) recently proposed new rules to enhance climate reporting requirements. Companies are also expected to comply with a growing number of regulations, ranging from sustainability measures to pay equity requirements, that fall under the ESG umbrella. 

To create an ESG strategy that effectively meets the expectations of investors and regulators, reliable  data must be available at every step of the journey, from planning to day-to-day business activities to reporting accurate results. 

An Effective ESG Strategy Starts with Good Data

An effective corporate strategy — even if to simply comply with regulatory reporting requirements — should be built on data that clarifies objectives and promotes accountability throughout the organization. This requires a large data collection and analysis process, involving stakeholders from all parts of the business. That data will play a central role in every stage of the strategy-making process and is crucial for complying with ESG regulations. At each stage, stakeholders need access to accurate data to meet disclosure requirements and promote the integrity of decision-making and reporting. 

Establishing Your Baseline

Establishing your current baseline for ESG performance metrics requires you to collect far-reaching data. Example metrics may include your carbon footprint, energy consumption, diversity and inclusion efforts, product safety, and employee health and safety. It’s important to be thorough at this stage, since your baseline will help you tell an accurate story and meet regulatory requirements as you progress through your ESG journey.  

Setting S.M.A.R.T. Goals

With your baseline in place, now you can set specific, measurable, achievable, relevant and time-bound (S.M.A.R.T.) goals. Your baseline metrics, along with data specific to each initiative, will play a key role in setting these goals. For example, an energy efficiency goal will be based on your current consumption and the potential outcomes you can expect to achieve from a particular approach (such as energy-efficient lighting) in a set time frame. 

Assessing Your Risks

Your ESG plans shouldn’t be undermined by avoidable or manageable risks. Considering that these plans can be complex, being able to accurately gather and analyze data is essential to truly understanding the risk of any ESG initiative. The better your data capabilities, the better you will be at quantifying and prioritizing risk, as well as modeling the impact of various scenarios.

Validate Claims

As you make claims about your ESG initiatives, it’s reasonable for investors and regulators to seek proof of those assertions. For instance, if you claim to reduce carbon emissions by 3%, you’ll need to show the data to prove it. This will likely involve large swaths of detailed data, so it’s important to have strong data capabilities in place so you can respond accordingly. 

Empower Employees to Execute and Report on Your Corporate ESG Strategy

Data is a critical component of ESG planning and execution, but it doesn’t exist in a silo. People, processes, and technology must work in concert to gain the insights needed to drive a successful ESG strategy. 

Employees throughout the company must be able to leverage data to make decisions that align with your strategy. Fleet managers need routing analytics to reduce fuel consumption. Hiring managers and HR need compensation intelligence to ensure employees are paid fairly. Facility managers need building performance insights to reduce energy consumption.

The data gathered from these day-to-day business decisions must be consolidated and sent to the company’s ESG officer, the board, and any other stakeholders responsible for generating accurate, complete ESG reports. These reports aren’t just for investors and regulators. They also help the company track progress and refine ESG plans over time. 

The Role of Data Warehousing in Your Corporate ESG Strategy

Because of the sheer scale and complexity of the data involved in ESG planning and execution, it’s essential to have a modern data warehouse solution in place. Modern data warehouses can manage large volumes of data from multiple sources and feed the advanced reporting and analytics tools required for ESG planning. With these capabilities, along with a data governance model to ensure the accuracy of your data, you can achieve better outcomes from your data. 

Remove Data Silos

Because ESG planning requires you to collect data from throughout the company, it’s common to encounter data silos. These siloes slow down data aggregation efforts and increase the likelihood of inaccuracy and incompleteness. Using a modern data warehouse allows you to centralize large volumes of information. These platforms are meant to scale with you, even as your data sets grow exponentially. This allows you to capture the expansive data needed for ESG planning and reporting and feed the applications that enable employees to execute on your ESG strategy. 

Explore Unstructured Data

Some data warehouses are capable of housing unstructured data, while others are used alongside a data lake. In either case, having access to unstructured data provides you with the opportunity to surface new insights to support your ESG strategy. Because ESG standards are still taking shape, it’s hard to know what you need to know. There is a wealth of information relevant to your ESG strategy in your unstructured data. It’s important to capture it so you can have it when you need it. 

Leverage Advanced Analytics Platforms

You have a powerful set of business intelligence tools at your disposal for analyzing your ESG baseline, setting goals, and measuring risk. The key is to feed them with high-quality, comprehensive data. Using these analytics tools alongside a modern data warehouse and following consistent data governance and data management practices across platforms will position you for successful ESG tracking and reporting. 

This addresses a number of the common hurdles companies encounter when setting their corporate ESG strategy:

Shape Your ESG Strategy With Stronger Data

The effectiveness of your ESG strategy depends on your data. With a modern data warehouse, supported by formal data governance and management practices, you can uncover actionable ESG insights. You can also empower your employees to take tangible steps to meet your ESG goals and track your progress accurately. 

With the help of Kenway’s data consultants, you can modernize your data practices to meet the pressures of ESG planning and reporting. We provide modern data consulting services to firms that want to leverage the full capabilities of their data. Our data experts ensure that high-quality data is readily available to your employees, while implementing tools that can scale with you over time. 

To learn more about how we can help you leverage analytics more effectively for ESG planning, schedule a consultation with us: [email protected] 

ESG Strategy FAQs:

What data analysis is involved in developing an ESG strategy?

Developing an ESG strategy involves an intensive data analysis process. Data plays a key role in the following phases of ESG planning and execution:

What role does data play in setting ESG goals and KPIs?

When establishing ESG goals, data enables you to understand your current baseline, identify which opportunities will be most impactful, and determine the KPIs that will best measure your progress. 

What role does data transparency play in ESG reporting?

Data transparency is critical to providing stakeholders with assurance that your ESG claims are accurate. This is especially important for organizations that are subject to ESG regulations. They, along with investors, customers, and employees, associate the validity of your claims with the integrity of your business.

 

IVR Best Practices: Making Dollars and Sense of IVRs

What is IVR/IVA?

Intelligent Virtual Agents (IVA) are a critical part of any customer service operation. They can help to automate tasks, reduce costs, and improve customer satisfaction. However, to get the most out of your IVA system, IVR reporting can track and measure key performance indicators (KPIs). Our Contact Center Solutions consultants help turn your data into information with a unique methodology and set of metrics to evaluate the health and success of your Intelligent Virtual Agent (IVA). Using the metrics included in this article combined with our Information Insight Capability, your company can turn your IVA data into useful, actionable information to improve the customer experience and reduce costs.

Every business is unique and there isn’t just one KPI that proves an IVA, IVR, or chat bot is functioning well. Given these differences, Kenway recommends evaluating an IVA on KPIs that illustrate the efficiency and effectiveness of the bot that drives customer satisfaction and result in cost savings for the organization. Increases in an IVA’s efficiency, effectiveness, and customer satisfaction demonstrate improvements in performance. This indicates customers are utilizing the bot more frequently to resolve their questions and are requesting to speak with a customer service agent less often, which reduces call center costs while also improving customer support. Companies that track these KPIs will glean deeper insights into the health of IVA processes and identify opportunities for improvement.

HubSpot surveyed more than 1,000 people in the United States and found that the most popular communication channels for customer service were email (61%), phone (60%), and live chat (57%). Social media came in fourth place, with only 29% of respondents saying they prefer to contact companies through those channels. A 2017 study conducted by Microsoft found that 70% of the customers still prefer to contact customer service by phone, while 20% prefer email and only 10% prefer chat. Since 2017, email and chat have significantly increased in popularity. However, when customers cannot resolve their issue, phone support is still the preferred method of contact for most customers.

Since the voice channel is still the preferred method to resolve the most important issues the remains a key component of a company’s customer engagement, evaluating them and improving their responsiveness is smart business. For this blog we will focus mostly on IVRs and voice calls, but the same metrics can be applied to chat bots too. For the past 15 years, Kenway Consulting has helped design, implement, test, and report on an IVRs for our customers through our Contact Center Solutions practice.

For more information on our thoughts and experiences in the Contact Center world, read our blog, The Dos and Don’ts of IVR Design and our case study, Seamless IVR Solutions Mastering System Conversion & Overcoming Challenges.

KPIs to evaluate an IVR

  1. Average Call Length: This measures the average time it takes for the IVR system to handle a call from start to finish. A low average call length can indicate that the IVR system is efficient in handling customer requests and reducing wait times, while a high average call length may indicate that the IVR system is too complex or confusing for customers. According to Zendesk, the biggest frustration with virtual agents for 54% of customers is answering too many questions.
  2. Containment Rate: This measures the percentage of calls that successfully complete their intended task using the IVR system without the need for human intervention. A high containment rate indicates that the IVR system can effectively handle customer inquiries and requests, reducing the workload on live agents, improving customer satisfaction, and reducing organizational costs. According to Emplifi, 35% of customers want a complete self-service option to resolve their issue.
  3. Agent Transfer Rate: This measures the percentage of calls that are successfully routed to the appropriate department or agent based on the customer's intent. A low agent transfer rate indicates that the IVR system is effective in understanding and interpreting customer responses and can route calls to the right agents, reducing frustration, agent Average Handle Time and wait times. A low agent transfer rate also impacts directly on Call Center costs, since customers directly reach the correct agent skill.
  4. Agent request rate: This measures how many callers request an agent during their call. Some callers will immediately request an agent and not “play” in the IVR. Callers that do play along but request an agent usually means they are confused, or the application is having trouble moving them forward. A high agent request rate indicates your solution is not effective or efficient.
  5. Call abandonment rate: This measures the percentage of calls that hang up or are disconnected from the IVR before reaching an agent or completing a self-service task. A high call abandonment rate may indicate that the IVR system is difficult to use or does not provide enough information or options to customers. Understanding both frequency and timing during the call of this KPI can help Contact Center Organizations to optimize the IVR customer experience and measure Self-Service success accurately.
  6. Customer satisfaction rating: This measures the level of satisfaction customers have with the IVR system based on their experience using it. A high customer satisfaction rating indicates that the IVR system is effective and efficient in meeting customer needs and providing a positive experience.

IVR Reporting

Expert tips for IVR Reporting

Data collection and management within your application are critical to your ability to report on the above metrics. Insights into the strengths and weaknesses of the IVA and offer opportunities to improve the customer experience and find cost savings. Specifically, companies should evaluate each prompt in their IVR and track its responsiveness to include, at each stage, the customer’s average working time and how many callers abandon, opt-out, or transfer to an agent.

Companies also should monitor the IVR’s ability to route calls in the minimum number of steps; because the sooner a caller hears the correct prompt, the sooner the customer will resolve their inquiry. Expediting the customer’s engagement with the IVR also will improve the IVR’s first call resolution which typically increases customer satisfaction.

Virtual Assistants are not often the most beloved customer service tool, but they can be immensely helpful in navigating customers to someone who can help them. Furthermore, for some businesses, a high performing IVA can be a competitive advantage. If you have an IVA with more data than information, are struggling to evaluate said IVA, or simply have an opinion on our recommended metrics, we would like to hear from you at [email protected].

 

Comprehensive Guide to ESG Compliance: Top Risks and Regulations

As corporations have moved to focus on ESG compliance and investors have shifted towards supporting those organizations, there has been a transition in focus from the traditional financial decision-making paradigm to also include a company's ethics and sustainability practices. This prioritization of ESG-based decision-making denotes a fundamental modification in corporate success metrics, emphasizing the values of accountability and transparency of long-term sustainability.

What is ESG and why should you care?

ESG is made up of three main topic areas, or pillars, that companies are expected to report.

Many companies are choosing to report on their ESG compliance as consumers and investors become more environmentally and socially conscious. By prioritizing ESG factors, companies can differentiate themselves in the market, attract a larger customer base, and foster stronger relationships with stakeholders, including employees, investors, and regulators.

Given the increase in ESG compliance reporting in recent years, there has been a significant shift to validate ESG metrics and ensure accountability and truthfulness in reporting. Investors, governments, and consumers are not only seeking companies with strong ESG practices, but also demanding verifiability in their ESG disclosures. In this new environment, companies are now obligated to ensure the accuracy of their ESG data, demonstrating that their ESG practices are not just claims, but substantiated facts. Failing to provide accurate and truthful ESG information can lead to serious consequences, as both governmental and non-governmental entities have begun imposing sanctions for non-compliance.

Increasingly, companies are taking proactive steps to ensure compliance, but encounter challenges that impede their ability to provide quality measurements. Companies are finding that there are several root causes including lack of strategy for compliance, poor data quality and gaps in governance practices. Organizations must address these root causes in order to guarantee compliance and avoid the potential cost of publishing inaccurate results.

The first step to ensuring compliance is to understand the legal and regulatory requirements that exist. Organizations’ legal teams should do a full review of the requirements that impact them and define a plan for compliance.

Risks of Non-Compliance

Regulatory Risks

Below are a few examples of existing and upcoming laws and regulations that require legal review to ensure requirements for compliance are understood.

Upcoming Laws, Regulations and Requirements

  1. US SEC ESG Disclosure Rules: The US Securities and Exchange Commission (SEC) is currently considering new rules that would require all registered public companies to disclose more information about their ESG practices and how they integrate ESG factors into their decision-making processes. Risk of non-compliance can lead to monetary penalties. In 2022, the SEC Task Force announced several enforcement actions related to misstatements in companies’ public disclosures relating to ESG matters.
  2. European Union Sustainable Finance Disclosure Regulation (SFDR): Financial market participants are required to disclose information about their ESG practices and how they integrate ESG factors into their decision-making processes within the European Union. Because the requirements under the law depend on country-specific implementations and penalties vary by jurisdiction, it is important for legal teams to review and interpret the law to assess the impact to each organization.
  3. US State Laws: Several states have proposed or enacted ESG regulations to require companies to disclose accurate ESG related information. Enforcement varies by state, but there is a growing trend to keep firms accountable.
  4. NASDAQ Board Diversity Disclosure Requirements: NASDAQ Board Diversity Disclosure requires companies listed on Nasdaq’s U.S. exchange to “publicly disclose board-level diversity statistics annually using a standardized template” and “have, or explain why they do not have, diverse directors.”

Increasingly governments are enforcing these laws. For example, Goldman Sachs Asset Management is one example of a firm that has been fined for non-compliance. In 2022, the firm agreed to pay $4 million after the SEC found that proper ESG protocol was ill-defined and inconsistently followed leading to inaccurate reporting.

Reputational Risks

Companies that fail to observe ESG compliance standards also face risks of not meeting investor expectations, which can impact their financial performance and access to capital. Today, more than ever, investors are incorporating ESG factors into their investment decisions, and they expect companies to demonstrate their commitment to sustainability and social responsibility. Moreover, investors are increasingly using ESG ratings and scores to evaluate the long-term sustainability and risk of their investments.

Companies that do not meet these expectations may face:

  1. Reduced investor interest
  2. Difficulty accessing capital
  3. Increased cost of capital

In addition, investors may also initiate shareholder resolutions or divest from companies that do not meet their ESG standards, which can further damage the company's reputation and financial performance. It is essential for companies to meet ESG compliance standards to meet investor expectations and ensure their long-term sustainability and financial success.

Kenway’s Ability to Work through Barriers to Success

Companies often struggle to accurately report on ESG compliance results which can lead to strategic decisions around focus areas for improvement being misled and in non-compliance with regulatory requirements. The barriers listed below are some examples that need to be considered. Without a plan to address these challenges, many organizations will risk reporting non-compliance and inappropriate investment in ESG improvements. A comprehensive assessment of the company’s current standing and an evaluation of what it will take to reach the desired endpoint is imperative.

Kenway Can Help with ESG Compliance

Kenway Consulting offers support to companies seeking to improve the validity and reduce effort required to produce their ESG reporting by instantiating data governance and management best practices. By working with Kenway, organizations of any size can begin to measure their current results, identify strategic focus areas for investment and improve their ESG metrics, establishing confidence in their performance for investors, regulators and consumers who are increasingly looking for companies to demonstrate a commitment to sustainability and responsible business practices.

Kenway specializes in data management and data governance and helps companies overcome these challenges in several ways:

By partnering with Kenway, organizations can overcome the challenges associated with ESG data collection and reporting, enabling them to more effectively measure their ESG performance, comply with reporting requirements, and demonstrate their commitment to sustainability to stakeholders. Contact us today to learn more about how Kenway can support your ESG reporting efforts at [email protected].

 

Data Privacy Laws: What You Need to Know

To avoid investigations, fines, and the legal implications of data security incidents, it’s critical for organizations to make data protection a top priority. Data protection laws have been around in some form for decades now and they have entered a new era. With an abundance of personally identifiable information (PII) being constantly shared, regulators are addressing the ethical implications of PII storage and use. The rights of individuals to dictate how their data is being used is of particular concern.

The first major data privacy law in more than 20 years, the General Data Protection Regulation (GDPR), changed the landscape by providing broad-scale protections for consumer data. Since then, new data protection laws have been established or proposed at the state, federal, and international levels. The number of laws will only continue to grow, and existing regulations will evolve quickly.

One of the biggest challenges in remaining compliant with any data privacy law is ensuring your organization has a full understanding of your data. Knowing the business purpose for collecting each data element and having a complete understanding of where your data is stored, where it comes from, and where it goes are all critical components of an implementation plan. Data mapping and advanced planning should be a focus for all organizations that are impacted by data privacy regulations.  

At Kenway, we’ve worked with many companies to help them implement changes to their business processes and to their data management framework to ensure they have the infrastructure needed to support regulatory compliance. We thought it would be helpful to provide a running list of the most prominent and recent data privacy laws to help you stay informed. We’ll be updating this page regularly, so be sure to check back for updates as new regulations are passed and current laws are amended!


General Data Protection Regulation (GDPR)

As the first major data privacy regulation in the European Union (EU)​​ since the 1990s, the General Data Protection Regulation (GDPR) serves as a model for other data privacy laws around the world and in the U.S. GDPR covers the data of all residents of the EU’s member states, regardless of where the entity collecting the data is located.

Some of GDPR’s most notable requirements include:

The Federal Trade Commission Act (FTC Act)

While there are currently no data protection laws specific to the U.S., the Federal Trade Commission (FTC) does hold broad authority to enforce consumer protections. As it relates to data privacy, the FTC Act gives the agency the right to prevent deceptive practices, seek monetary redress and relief for conduct that harms consumers, and conduct investigations on entities engaged in commerce. 

Here are some of the instances in which the FTC may use this authority to investigate and take action against organizations:

California Consumer Privacy Act (CCPA)

When it passed in 2018, the California Consumer Privacy Act (CCPA) was the first significant statewide data privacy law in the U.S. It provides consumers who are California residents with greater protections and rights in respect to their personal data. The CCPA applies to businesses that collect consumers’ personal data, do business in the state of California, and either meet certain revenue thresholds or sell personal information. 

Some notable provisions are outlined below:

California Privacy Rights Act (CPRA)

The California Privacy Rights Act (CPRA) expands the scope of the CCPA. One of its most notable provisions is the creation of an enforcement agency, the California Privacy Protection Agency, to take action against organizations that violate the CCPA. It also expands the definition of protected data to include employee and vendor information.

As of January 1, 2023, the CPRA also requires that:

For more guidance on the tools available to  implement CPRA, read this guide

Québec Privacy Law - Bill 64

The first set of requirements under Bill 64, An Act to modernize legislative provisions as regards the protection of personal information, went into effect on September 22, 2022. The bill makes significant amendments to existing privacy rules covered by various existing laws, most notably the Private Sector Act and the Public Sector Act. It’s expected to have a drastic impact on privacy practices within Québec and may provide a clue to how federal legislation will take shape in Canada. Here are some of the most notable provisions by effective date.

Effective September 22, 2022

Effective September 22, 2023

Virginia Consumer Data Protection Act (VCDPA)

Effective as of January 1, 2023, the Virginia Consumer Data Protection Act (VCDPA) is the second statewide data privacy law in the U.S. Though it’s built on the same framework as the CCPA, it’s less expansive in scope. 

Colorado Privacy Act (CPA)

The Colorado Privacy Act (CPA) provides many of the similar rights and requirements as the CCPA and the VCDPA, however its approach is different. Covered entities are defined as controllers and processors instead of businesses and service providers. Controllers make the primary decisions to manage, collect, and utilize data. Processors maintain and process consumer personal data on behalf of a controller.

Here are some other ways the CPA differs from other state laws:

American Data Privacy Protection Act (ADPPA)

The American Data Privacy Protection Act isn’t the law of the land yet, but it’s the first comprehensive federal data protection law in the U.S. to gain significant bipartisan support. The sweeping legislation covers for-profit and nonprofit entities, with different obligations and exemptions for some organizations. Even if it doesn’t pass as currently written, it does give you a good idea of what federal legislators are focused on. The bill not only addresses data privacy protections, but it also addresses the potentially discriminatory impacts of algorithms.

Notable provisions of the proposed data privacy regulation are:


Compliance Isn’t Easy. We Can Help.

Because we’re in a new era for data privacy and protection, there’s a lot to learn about the nuances of each regulation and what it means for your business. Even when you understand the requirements of data protection laws, operationalizing compliance is a completely different challenge. 

At Kenway, we help organizations get a clear view of their data ecosystem so they can properly identify and protect sensitive data, maintain practices needed for compliance, and report to regulators with confidence. We help you develop a strategic plan for compliance that incorporates data governance, data management, and business processes designed to empower your teams to handle information properly and avoid risks. 

Contact our experts to make compliance less complicated. 


Data Privacy Laws: FAQs

How long after a data privacy law is enacted does my company have to become compliant?

The amount of time you have to become compliant depends on the effective date defined by the data privacy law. For example, the Colorado Privacy Act (CPA) was signed into law on July 7, 2021 with a July 1, 2023 effective date. Therefore, organizations covered under the law were given roughly two years to put compliance measures in place. 

What teams in my organization need to be involved with ensuring compliance with new data privacy law(s)?

The team involved in ensuring compliance should come from several departments throughout the company:

How do I know if a data privacy law impacts my company’s practices? How can I ensure my company remains compliant, despite all the changes to these laws and new privacy regulations being implemented?

Assign someone in your legal organization with the task of keeping up with the data privacy regulations. Alternatively, you can engage an external legal advisor who understands your business and the data privacy landscape.

How much should my company budget for to meet new compliance regulations? 

The budget needed to meet data compliance regulations is dependent on the number of technical assets a company has in its ecosystem and the maturity of an organization's data management structure. If you have a complete understanding of data lineage, implementation can be as little as six months. A large organization that is lower on the maturity curve should plan for an 18-month implementation. 

What are the 7 principles of GDPR?

GDPR was developed with the following principles:

  1. Lawfulness, fairness and transparency 
  2. Purpose limitation
  3. Data minimization
  4. Accuracy
  5. Storage limitation
  6. Integrity and confidentiality
  7. Accountability

What acts are covered by the Data Privacy Act?

Because there is no single overarching federal legislation in the U.S. dedicated to data privacy, the proposed American Data Privacy Protection Act (ADPPA) may overlap with or override some current regulations. Depending on the language in the final passage of the bill, it may override existing privacy laws like the CCPA. It also may overlap with portions of the Children’s Online Privacy Protection Act (COPPA) and the Kids Online Safety Act (KOSA).

What are the key CPRA requirements for January 2023?

Some of the most notable aspects of the CPRA that go into effect in January 2023 include:

 

Your Guide to Using OneTrust for CPRA Compliance in 2023

Just when you think you have a handle on data privacy standards, new regulations come along. A slate of new data privacy laws and regulatory updates go into effect in 2023: the Virginia Consumer Data Protection Act, the California Privacy Rights Act (part of the California Consumer Privacy Act, or CCPA), and the Colorado Privacy Act. The California Privacy Rights Act (CPRA) is particularly significant. It expands the scope of what’s considered protected data and whose data is covered, requires more companies to comply, and mandates the creation of a privacy enforcement agency to hold companies accountable for being compliant. 

To get prepared, companies need to map and categorize data and determine the sensitivity of that data. They also have to create processes that allow people to opt-out from tracking and request that their data be deleted or changed. Software eases some of the burdens of implementing these protocols, and many companies choose OneTrust to ensure compliance. If you’re planning your approach to CPRA compliance, OneTrust is probably on your list of items to consider. Here’s what you need to know to use it effectively and ensure implementation runs smoothly. 

What Is OneTrust?

OneTrust is the most widely used data compliance solution on the market. Through a cloud-based platform, OneTrust provides end-to-end privacy management, data governance, and IT risk management solutions. It’s one of the fastest-growing cloud platforms, with more than 12,000 users. 

Why Should You Use OneTrust?

OneTrust offers an unmatched breadth of “trust intelligence” solutions that go beyond data protection and privacy. It also supports environmental, social, and governance (ESG) reporting, sustainability monitoring, and ethics and inclusion program management. As data privacy and protection requirements evolve, OneTrust allows you to scale your processes. 

OneTrust’s popularity also means that it’s been tested more than similar solutions. Because the data privacy space is new, there are many young, unproven players. OneTrust is already widely trusted by thousands of companies, many of which are in highly regulated industries. 

With that being said, every solution has its pros and cons.

Pros

Cons

OneTrust and CPRA 2023 Compliance

With the passage of the CCPA in 2018, California became a leader in data privacy regulations in the U.S. California privacy regulations are set to become even more stringent when the CPRA goes into effect in 2023. The CPRA expands the scope of existing legislation and calls for the creation of a new privacy enforcement agency (the California Privacy Protection Agency). 

Some notable new provisions of the CPRA include:

These provisions significantly increase the complexity of compliance. With the creation of a dedicated enforcement agency, companies may be subject to audits, which may or may not be announced in advance.  

OneTrust provides a range of solutions that support CPRA compliance. For example, Privacy Rights (DSAR) Automation streamlines the data subject access request intake process and related workflows. Digital Policy Management allows you to update privacy notices remotely and maintain an audit log of changes to policy language. Assessment Automation enables cross-functional teams to perform privacy impact assessments.

Implementing OneTrust Successfully for CPRA Compliance

Though OneTrust provides robust features that support your data privacy compliance, it’s important to work with experts to avoid its pitfalls and set your organization up for success. Here are four ways introducing a partner can help:

1. Data Preparation

OneTrust solutions are set up based on the assumption that you have a complete inventory of your systems and data, clear ownership of the business purposes as well as the technology, and well-defined process workflows outlining where data is stored and how it flows between systems. If those structural elements aren’t in place, you can’t begin the onboarding process. 

2. Configuration

OneTrust is also highly configurable, which means you can tailor it to your needs. But without knowing exactly what you need, it’s difficult to configure it in a way that will cover your use cases and maintain ease of use.

3. Understanding Compliance

Data privacy laws are complex and can overwhelm IT teams that already have a full load to manage. Interpreting how the laws impact your business can be challenging, especially if your company wasn’t subject to the previous guidance.

4. New Processes

The new regulations require new processes, which can easily spiral into a complicated, unwieldy web of workflows. For the sake of efficiency and scalability, OneTrust processes must be set up with your current resources and future needs in mind. Otherwise, you may have trouble maintaining your processes as your company grows and regulations evolve. 

How Kenway Can Help

OneTrust is a robust tool for compliance, but you’ll still need to do a lot of heavy lifting on your own. Kenway has deep expertise in implementing systems and processes that enable you to be confident in your ability to comply. Our data compliance subject matter experts provide you with the assistance you need to implement it successfully.

Here’s how we can guide you through the OneTrust onboarding process:

  1. Assess your current data privacy practices and advise you on which OneTrust modules are best for your business. 
  2. Build business requirements and a plan to implement a solution.
  3. Organize required inputs by gathering listings of impacted websites, policy notices, systems holding data, listing of owners of processes and assets, and coordinating with system owners to ensure all potential impacts are being considered. This is a critical part of the implementation process since OneTrust assumes all preparation is completed prior to kicking off an implementation program. 
  4. Perform customizations and configure OneTrust tailored to your use cases.
  5. Provide broader data governance and data management support to ensure OneTrust performs optimally:

To learn how we’ve helped one company prepare for data privacy regulations, read this case study. 

The expanding slate of privacy regulations doesn’t have to expand your workload. We do the heavy lifting of coordinating cross-functionally, keeping track of all the assessments, developing your processes, and documenting workflows. Schedule a consultation to learn how Kenway’s experts set you up for OneTrust success. 


CPRA and OneTrust FAQs

What are the key CPRA requirements for January 2023?

Some of the most notable aspects of the CPRA that go into effect in January 2023 include:

What is new with consumer rights for CPRA in January 2023?

The CPRA extends privacy protections to all California residents, not just customers. In addition to requesting removal, they can request that businesses change their personal information if it’s incorrect. The law also calls for the protection of employee and vendor information, which weren’t originally covered under the CCPA.

How can OneTrust support my CPRA compliance program?

OneTrust offers several products, such as privacy rights automation and assessment automation, that help you meet CPRA compliance. 

Are there best practices to prepare data for OneTrust?

Data preparation—cleaning, mapping, normalizing, and structuring your data—is key to ensuring OneTrust success. It’s also a good idea to have a broader data governance strategy to guide how you manage your data. 

Will there be manual gaps in identifying consumer data with OneTrust?

It’s possible for there to be manual gaps when identifying consumer data in OneTrust. That’s why it’s important to coordinate with system owners to gather and organize your data inputs during the implementation process.