Data privacy/courtesy photo

Many companies feel they do not have the resources necessary to comply with the growing list of regulations surrounding data privacy.

That was a major finding in FTI Consulting's latest "Corporate Data Privacy Today: A Look at the Current State of Readiness, Perception and Compliance" survey published on Tuesday. The survey indicated 60% of respondents do not have the resources to become compliant with newer data privacy laws.

In the survey, FTI Consulting says it reached out to more than 500 leaders of large, U.S.-based companies, with 60% of respondents holding titles in senior management or the C-suite and 28% holding middle-management roles.

"When it comes time to deploy and implement the appropriate data privacy controls within your organization, you need to have the right subject-matter expertise and the ability to deliver upon the obligations under the law in a way that makes sense for your business," said Andrew Shaxted, senior director at FTI Consulting in Chicago.

The tight job market, he said, is making it difficult to recruit people with expertise from their current jobs. He said in-house counsel need to step up because data privacy is now part of all business functions.

"The expectation of in-house counsel as far as that baseline understanding of data privacy compliance obligations should tick upward," Shaxted said.

He added that when companies are selecting new software to manage data they should involve the legal and compliance teams early on to mitigate the "cost and risk of onboarding new solutions."

Increased Budgets for Privacy

Whether it is on compliance efforts or finding new talent to navigate cybersecurity and data privacy initiatives, many companies will be increasing their data privacy budgets in the next year. According to the report, 97% of respondents will increase their data privacy budgets by an average of 50%.

"With the California Consumer Privacy Act coming into force, organizations are going to feel the pinch for resources needed to comply. This will include large companies spending in the range of $1-2 million on establishing and maintaining compliance," Jake Frazier, senior managing director of FTI Consulting in Houston, said in the report.

The pressure to spend more comes partially from the scrutiny companies are facing for how they use personal data. From the survey, 60% of companies agreed there have been increased expectations on how data is managed.

"I think that also speaks to the nature of change taking place in the broader organization where personal data is becoming more and more integral to their work and therefore the cost of compliance is going to tick up," Shaxted said.