Deloitte Thailand's PDPA Readiness Survey - How organisations across industries have responded to the upcoming enforcement of the Thailand ...
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Deloitte Thailand’s PDPA Readiness Survey How organisations across industries have responded to the upcoming enforcement of the Thailand Personal Data Protection Act B.E. 2562
Deloitte Thailand’s PDPA Readiness Survey With the increased collection and use of personal data, management and privacy of data is a growing concern for businesses across all sectors. More importantly, the introduction of the Thailand Personal Data Protection Act B.E.2562, “Thai PDPA”, will officially come into affect in June 2022 after being postponed. This will change the privacy landscape for businesses dramatically. In October 2021, Deloitte Thailand conducted a Thai PDPA readiness survey across a sample of organizations and industries in Thailand. The aim of this survey was to understand how organizations are preparing for Thailand’s PDPA compliance, how far along their implementation plans are and what challenges they may be facing along the way. The results of the survey indicate that industries are differing in their implementation speed and timeline of compliance activities, with Financial Services leading the way to be ready in time for June 2022. The top motivators for Thai PDPA compliance activities were driven by PDPA regulations and negative consequences of not adopting these regulations, rather than associated benefits. Integrating new policies and processes into business operations was the top challenge across all industries. Deloitte Thailand’s PDPA Readiness Survey Report 2022 2
Survey respondent profile 40% of the survey respondents came from the Consumer industry, followed by Financial Services, accounting for 27%. The majority of respondents came from larger sized companies, with a head count of 500 employees and above. Industry of respondents Organization size (by headcount) (% of respondents, n=136) (% of respondents, n=136) 50 - 99 Consumer 40% 7% 1 - 49 Financial Services 27% 15% 1000+ 38% Energy, Resources 14% & Industrials Technology, Media 7% and Telecom 17% 500- 999 Life Sciences and 4% Healthcare Others 8% 23% 100 - 499 Deloitte Thailand’s PDPA Readiness Survey Report 2022 3
PDPA implementation status varies across industries 72% of respondents have started or already implemented Thai PDPA requirements, whereas 24% have plans but have not started the implementation process yet. By Industry, Financial Services had the largest percentage of respondents who have already started, or implemented Thai PDPA requirements already, followed by Life Sciences and Health care. The industry with the highest percentage of those who have not stated the implementation process is Energy, Resources & Industrials. Thai PDPA implementation status Thai PDPA implementation status by industry (% of respondents, n=136) (% of respondents, n=120, excluding ‘Others’) Financial Services 14% 87% 42% Life Sciences 20% 80% 30% and Healthcare 24% Consumer 31% 69% Technology, Media 33% 67% 4% and Telecom Energy, Resources Do not plan Have plans but Have started Already 50% 50% & Industrials to implement not started implementing implemented implementing Not Started Started yet Deloitte Thailand’s PDPA Readiness Survey Report 2022 4
Thai PDPA implementation status varies depending upon company size Survey response indicates that the majority of organizations that have started or already implemented Thailand’s PDPA requirements, are larger with at least 100 employees, whereas more than half of the respondents from smaller organizations with less than 50 employees stated that they have plans but have not started implementing yet. Thai PDPA implementation status by organization size (% of respondents, n=136) 1 - 49 70% 30% 50 - 99 40% 60% 100 - 499 26% 74% 500 - 999 17% 83% 1000+ 15% 85% Not Started Started Deloitte Thailand’s PDPA Readiness Survey Report 2022 5
Most organizations plan to, or have already performed a Thai PDPA readiness assessment Of the 45% of respondents who had already conducted a Thai PDPA readiness assessment, 98% of the assessments included readiness of IT systems as well as business processes and operations. Both Financial Services and Life Sciences and Healthcare had a higher percentage of respondents who have already performed a Thai PDPA readiness assessment. Conducting Thai PDPA readiness assessment (% of respondents, n=136) (% of respondents, n=120, excluding ‘Others’) 5% 6% 20% 16% No, and not planning to 11% 30% 20% 56% 39% 78% No, and not No, but planning to 44% planning to No, but planning to 65% 60% Yes 45% 44% Yes 45% 17% Financial Life Sciences Consumer Technology, Energy, Services and Healthcare Media and Resources & Telecom Industrials Deloitte Thailand’s PDPA Readiness Survey Report 2022 6
Compliance timeline Only 29% of the respondents indicated that they may not be fully compliant around the enforcement deadline of June 2022, with 8% of those expecting to be fully compliant much later in the year. Results show that most of the respondents in the Consumer, Financial Services and Technology, Media and Telecom industries will be fully compliant by June 2022, whereas the Energy, Resources and Industrials, and Life Sciences and Healthcare sector seem to be lagging. Timeline of expected compliance Timeline of expected compliance by industry (% of respondents, n=136) (% of respondents, n=120, excluding ‘Others’) 33% Financial Services 81% 14% 5% Technology, Media 78% 22% 20% 21% and Telecom 18% Consumer 71% 22% 8% 8% Energy, Resources & Industrials 50% 39% 11% Life Sciences Already fully Oct-Dec Jan - Mar Apr - Sep Later than 40% 40% 20% compliant 2021 2022 2022 Sep 2022 and Healthcare Fully compliant, or by Mar 22 June, 2022 Compliant by Apr-Sept 22 Later than Sept 22 Deloitte Thailand’s PDPA Readiness Survey Report 2022 7
Key drivers for Thailand’s PDPA compliance activities The top 3 key drivers for compliance activities were consistent across all sectors, being threat of regulatory fines or lawsuits, potential for reputational damage and improving customer trust Importance of Thai PDPA compliance activities (% of respondents, n=136) Threat of regulatory fines or lawsuits 73% The top 3 drivers for Thailand’s PDPA Potential for reputational damage 66% compliance activities were mainly regulation Improving customer trust 59% driven, and if not prioritized could have Privacy as a strategic priority 37% negative ramifications. Whereas the bottom 4 Increase efficiency in processing data 36% drivers are lead by positive motivations Enable an insight driven organization 15% and benefits of PDPA compliance. Gaining a competitive advantage 10% via privacy Deloitte Thailand’s PDPA Readiness Survey Report 2022 8
Almost half of the respondents expect significant benefits from Thai PDPA compliance A higher proportion of Technology, Media and Telecom organizations and Energy, Resources & Industrial expect significant benefits from Thai PDPA compliance activities compared to other industries. Financial Services and Life Sciences and Health Care expect more limited or no benefits outside regulatory compliance, as these industries are highly regulated and the nature of the data they are dealing with is more sensitive. Thai PDPA Compliance Benefits Benefits by Industry (% of respondents, n=136) (% of respondents, n=120, excluding ‘Others’) 11% 11% No benefits outside 28% 32% regulatory compliance 23% 40% 28% 26% Limited benefits 32% 89% 49% 40% 61% 47% Significant benefits (eg competitive advantage) 45% 20% 19% No benefits outside of regulatory compliance Technology, Energy, Consumer Life Sciences Financial Limited benefits Media and Resources & and Healthcare Services Significant benefits Telecom Industrials Deloitte Thailand’s PDPA Readiness Survey Report 2022 9
Main areas of budget allocation for Thai PDPA compliance activities (% of respondents, n=136) Reviewing internal policies, agreements, 46% and practices related to personal data Implementing data management processes 43% and operating systems Updating existing privacy notices and 33% creating legal documents Conducting a gap assessment to identify 33% the current levels of compliance Employee training 31% Governance, Risk and Compliance 31% Data Leakage Prevention 30% Record of processing activities (ROPA)/ 30% Data mapping and management Consent/Preference Management 18% Deloitte Thailand’s PDPA Readiness Survey Report 2022 10
Areas of budget allocation by industry (% of respondents, n=120, excluding ‘Others’) Employee training 43% Consumer Governance, Risk, Compliance 41% Reviewing Internal policies, agreements Energy, 72% and practices related to personal data Resources & Conducting a gap assessment to identify the Industrials 44% current levels of compliance Implementing data management 54% Financial processes and operating systems Services Conducting a gap assessment to identify the 49% current levels of compliance Employee Training 60% Life Sciences and Healthcare Governance, Risk, Compliance / 40% Data Leakage Prevention Reviewing Internal policies, agreements Technology, Media and practices related to personal data 56% and Telecom Governance, Risk, Compliance / Data 44% Leakage Prevention Deloitte Thailand’s PDPA Readiness Survey Report 2022 11
Leading function in Thai PDPA programs and compliance activities Compliance was the leading function for Thai PDPA activities for all industries apart from Energy, Resources & Industrials, where HR was the leading function. The chosen function overseeing PDPA compliance activities suggests a link to the nature of business activities of the organization, and whether they are primarily dealing with internal data (B2B) or external data (B2C). Leading function Leading function by industry (% of respondents, n=136) (% of respondents, n=120, excluding ‘Others’) Compliance 39% Consumer Legal 26% Compliance 35.3% Energy, Resources HR 39% & Industrials Legal 28% Legal 24.3% Compliance 41% Financial Services HR 19.1% Risk 27% Risk 12.5% Life Sciences Compliance 40% and Healthcare Legal 40% IT 8.8% Technology, Media Compliance 44% and Telecom HR/IT 22% Deloitte Thailand’s PDPA Readiness Survey Report 2022 12
Appointing a Data Protection Officer (DPO) Majority of respondents indicated that a Data Protection Officer (DPO) will be or already has been appointed internally, compared to outsourcing. (% of respondents, n=136) (% of respondents, n=120, excluding ‘Others’) Internal Outsourced Financial Services 95% 5% 56% Life Science and Healthcare 80% 20% Technology, Media and Telecom 78% 11% 11% 19% Energy, Resources 72% 28% & Industrials 8% 8% 9% Consumer 65% 22% 14% Yes, No, but Yes, No, but No, and appointed planning outsourced planning to don’t internally to appoint outsource plan to Internal internally Outsourced Don’t plan to appoint Deloitte Thailand’s PDPA Readiness Survey Report 2022 13
Investment in tools and technologies The top 3 tools and technologies that organizations have invested in for Thai PDPA compliance activities include consent/preference management, data privacy assessments, and data encryption. (% of respondents, n=136) Consent/ Preference Management 19.9% Technology type Data Privacy Assessment 16.4% PDPA Technology Data Encryption 14.0% Protection/Security Data Leakage Prevention 13.7% Access Control Data Discovery and Inventory 10.3% Response Cookie Management 8.8% Privilege Access Management 8.6% Privacy Incident Response 8.3% Deloitte Thailand’s PDPA Readiness Survey Report 2022 14
Investment in tools and technologies by industry (% of respondents, n=120, excluding ‘Others’) For all industries, the top investment was in tools for consent and preference management. For Consumer, Energy, Resources & Industrials, and Financial Services, the second was for data leakage prevention tools. Top investment priorities were aligned with the core Thai PDPA requirements. Consent/Preference Management 100% Consumer Data Leakage Prevention 49% Consent/Preference Management 100% Energy, Resources & Industrials Data Leakage Prevention 72% Consent/Preference Management 100% Financial Services Data Leakage Prevention/ 51% Data Privacy Assessment PDPA Technology Consent/Preference Management 100% Life Sciences and Protection/Security Healthcare Cookie Management 100% Access Control Technology, Media Consent/Preference Management 100% Response and Telecom Privacy Incident Response 67% Deloitte Thailand’s PDPA Readiness Survey Report 2022 15
Implementation Challenges Top challenges faced during Thai PDPA implementation (% of respondents, n=136) 75% 68% 63% Integrating new policies Interpreting PDPA Staff knowledge and processes into business requirements operations 60% 16% 13% Implementing new Budget allocation Staff availability technology Deloitte Thailand’s PDPA Readiness Survey Report 2022 16
Top Challenges by Industry Integrating new policies and processes into business operations was one of the top challenges for almost all industries. For Life Sciences and Healthcare, the top challenge was interpretation of Thai PDPA requirements. (% of respondents, n=120, excluding ‘Others’) Integrating new policies and processes into business operations 73% Consumer Staff Knowledge 67% Energy, Integrating new policies and processes into business operations 83% Resources & Industrials Staff knowledge/ 67% Implementing new technology Integrating new policies and processes Financial 76% into business operations Services Implementing new technology 68% Life Sciences and Interpreting PDPA requirements 80% Healthcare Implementing new technology 80% Technology, Interpreting PDPA requirements 100% Media and Telecom Integrating new policies and processes 89% into business operations Deloitte Thailand’s PDPA Readiness Survey Report 2022 17
Our Holistic PDPA Approach Deloitte encompasses an integrated approach for the Thai PDPA compliance journey. With a holistic point of view, Deloitte is able to combine Technology, Legal, Compliance and Organization workstreams to offer deeper insights and provide an end-to-end service from initiation and gap assessment, through to the implementation and post-implementation processes. Policy and Governance Appointment of DPO Developing or embedding PDPA policies into the policy of the organization, for example Personal Data Protection Policy, Security Policy, PDPA Incident Management Framework, as well as necessary legal documents. Process Technology Policy Working processes being revised and communicated throughout the organization on the awareness of personal data protection. Procedure People Process Procedures being developed under the privacy principle and ensuring control throughout the organization. People Procedure All employees need to have an awareness and sufficient understanding on the Thai PDPA and data privacy regulations. Technology Technology needs to be developed and implemented to align with the requirements of the Thai PDPA, enhanced security, privacy, and control processes. Deloitte Thailand’s PDPA Readiness Survey Report 2022 18
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