Data value: Governance and privacy in the digital age

Data is one of the most valuable assets — and one of the most vulnerable

Amid this era of unprecedented digital transformation comes stricter data privacy regulations, rising cyberthreats, and a growing public demand for transparency. As AI, IoT, and blockchain generate massive amounts of data, the challenge isn’t just collecting and storing the information — it’s governing, protecting, and using it ethically.

The new data dilemma

Standardizing data governance is becoming more and more complex. While initiatives like the Canadian Data Governance Standardization Collaborative aim to set frameworks for managing security and privacy risks, technology continues to evolve faster than regulation. The result? Inconsistent standards across industries, fragmented data management, and increased risks.

Regulatory pressure is getting stricter. The 2023 to 2026 Data Strategy for the Canadian Federal Public Service underscores the need for stronger data accountability by requiring businesses to prove they can meet tighter regulations — or face legal and reputational consequences.

However, privacy awareness doesn’t equal preparedness. While 88 percent of Canadian businesses know their privacy responsibilities, only 47 percent have formal privacy risk policies, according to the Office of the Privacy Commissioner of Canada (OPC). This gap exposes organizations to breaches and public distrust, especially as consumers demand more control over their data.

And the threat landscape is only getting worse. Cybercriminals are shifting their focus from system hacks to data manipulation. Deepfake fraud, AI-generated phishing scams, and insider threats are making traditional defenses obsolete. The OPC is pushing for privacy-by-design, which uses a risk-based approach to determine the level of control needed to keep sensitive information safe. Still, without the right investments, businesses risk falling behind on security, compliance, and consumer trust.

Risks to watch

Privacy breaches from AI and third-party vendors: The integration of AI and reliance on third-party vendors without appropriate governance frameworks could lead to increased privacy breaches.

Regulatory non-compliance: Organizations struggle to keep up with evolving privacy laws, leading to potential non-compliance risks and legal penalties.

Cross-border data transfer risks: Data sovereignty laws are tightening, making it harder to store and share data internationally.

Insider threats in remote or hybrid work models: Remote and hybrid work models could result in employees potentially mishandling sensitive data outside secure office environments.

Data breaches from poor security controls: Insufficient cyber security controls could lead to data breaches, compromising personal and organizational information.

Challenges in managing user preferences across channels: Keeping user consent and preference management consistent across multiple platforms poses significant challenges, impacting compliance and user trust. 

Emerging legislative impacts on third-party data sets: New laws affecting third-party data increase the risk of non-compliance for businesses that don’t have proper governance.

Growing scrutiny on children’s privacy: New laws tighten restrictions on data collection from minors.

AI policy and ethical considerations: AI technologies raise concerns about data privacy. Organizations need comprehensive AI policies to address ethical and data privacy implications.

Increased enforcement of privacy regulations: Regulators have increased their enforcement actions, leading to higher penalties for data privacy violations and emphasizing the need for compliance programs.