Enforce Governance, Risk, and Compliance Programs for Database Data

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1 Enforce Governance, Risk, and Compliance Programs for Database Data With an Information Lifecycle Management Strategy That Includes Database Archiving, Application Retirement, and Data Masking WHITE PAPER

2 This document contains Confidential, Proprietary and Trade Secret Information ( Confidential Information ) of Informatica Corporation and may not be copied, distributed, duplicated, or otherwise reproduced in any manner without the prior written consent of Informatica. While every attempt has been made to ensure that the information in this document is accurate and complete, some typographical errors or technical inaccuracies may exist. Informatica does not accept responsibility for any kind of loss resulting from the use of information contained in this document. The information contained in this document is subject to change without notice. The incorporation of the product attributes discussed in these materials into any release or upgrade of any Informatica software product as well as the timing of any such release or upgrade is at the sole discretion of Informatica. Protected by one or more of the following U.S. Patents: 6,032,158; 5,794,246; 6,014,670; 6,339,775; 6,044,374; 6,208,990; 6,208,990; 6,850,947; 6,895,471; or by the following pending U.S. Patents: 09/644,280; 10/966,046; 10/727,700. This edition published November 2010

3 White Paper Table of Contents Executive Summary... 2 The Challenge: Enforcing GRC Policies for Data in Databases... 3 Compliance Challenges Legal Challenges IT Challenges... 4 Data Privacy Challenges... 5 Line-of-Business Challenges... 5 The Right Strategy to Support GRC Programs: Information Lifecycle Management... 6 The Right Tools: Database Archiving, Application Retirement, and Data Masking Comply with Legal and Regulatory Requirements by Archiving Database Data and Retiring Legacy Applications... 7 Keep Database Data Manageable with Database Archiving Reduce the Risk of Security Violations by Masking Sensitive Data in Nonproduction Copies The Solution: Database Archiving, Application Retirement, and Data Masking Solutions from the Informatica ILM Product Family Informatica Data Archive Informatica Data Masking Meeting GRC Challenges The Proof: Informatica ILM Software in Action Conclusion Enforce Governance, Risk, and Compliance Programs for Database Data 1

4 Executive Summary One of your company s most valuable assets is the information stored in business applications and databases, both live and legacy. A governance, risk, and compliance (GRC) program can help your company codify the proper policies, guidelines, and procedures for managing its information assets in accordance with corporate goals and objectives. But adhering to and enforcing GRC policies can be a real challenge when the volume of electronically stored information (ESI) keeps growing. Because database data is retained for longer and longer periods of time, volumes build up and become increasingly difficult and expensive to manage. Large database volumes create challenges for your IT, legal, compliance, records management, and data security teams, as well as your line-of-business managers. An information lifecycle management (ILM) strategy can help your company define how database data is used, how and when it can be archived, and when it can be disposed. The Storage Network Industry Association defines ILM as the policies, processes, practices, and tools used to align the business value of information with the most appropriate and cost-effective IT infrastructure from the time information is conceived through its final disposition. The Informatica ILM product family delivers solutions through tools for database archiving, application retirement, and data masking. These software solutions are ideal for controlling data growth and protecting data in databases. These solutions can help your company: Establish and enforce data retention and disposition schedules Ensure that archived data from retired legacy applications is easily accessible and searchable and retains its full application context for e-discovery Comply with privacy regulations by masking sensitive, confidential, or private information in copies of production databases After reading this paper, you ll understand: The challenges of enforcing GRC programs that include data in databases How an ILM framework supports a GRC program Why database archiving, application retirement, and data masking are critical parts of an ILM strategy Why the Informatica ILM product family that includes Informatica Data Archive and Informatica Data Masking is the ideal solution How Informatica software helped a large financial institution implement a GRC program and save $15 million over three years 2

5 White Paper The Challenge: Enforcing GRC Policies for Data in Databases Let s examine some of the challenges of maintaining an effective GRC program for structured data in databases and files, along with related unstructured data, such as documents, audio, and images. Compliance Challenges Most companies maintain corporate data retention, disposition, and privacy policies. Proper disposition of aged data needs to be controlled and legally defensible. But records managers and compliance teams struggle to audit adherence to these policies when: Information stores are scattered all over an organization, so there s a tendency to retain data in legacy applications when it should be archived, which only exacerbates the data volume problem. Database data is not properly classified, so the business doesn t know when to keep or purge it. Failure to comply with data retention policies and schedules is almost inevitable. Data management policies are managed at the department not the enterprise level, increasing the chances of data being improperly stored or accidentally deleted. To successfully comply with corporate data retention, disposition, and privacy policies, your company must manage them from a central location. Processes and tools for data classification need to be implemented across the enterprise. Compliance officers require complete and authoritative audit information that must be presented in a legally defensible manner. All departments and business units need to know how and when to purge obsolete data. Everyone needs to understand the data model. And data volumes must be curbed so that there s less data overall to manage. What Is GRC? Governance: The overall approach to managing an organization including organizational structure, processes, and controls to ensure that business activities and directions are executed systematically Risk: The identification of adverse results when activities and directions are not executed according to plan or when a company falls out of compliance Compliance: How well an organization meets the requirements it sets for itself, as well as those established by a third-party regulatory body Enforce Governance, Risk, and Compliance Programs for Database Data 3

6 Legal Challenges To support litigation, mergers, acquisitions, and other corporate legal functions, legal departments need to be able to find and access documentation quickly and easily. But legal teams struggle to meet e-discovery deadlines for several reasons: The information they need may reside in both live and legacy database applications on archaic technology stacks. Searching, accessing, and delivering this data in useful formats can be time consuming and costly, especially when highly specialized IT skills are required. As the databases grow in size, it takes longer to find and extract specific data sets. All of these factors can significantly delay the e-discovery process, which causes legal costs to skyrocket and potentially puts your company at risk. To avoid these delays, data stores should be classified based on the data s business value and the complete application context needs to be maintained in archives. Original data and copies should be easily distinguishable. Data retention and disposition schedules should be determined based on legal requirements. IT Challenges When databases are bogged down with more and more data and the underlying data management infrastructure isn t optimized for scalability uncontrolled data growth can trigger a cascade of problems for your IT organization: Application performance may significantly deteriorate. Standard IT maintenance processes may take longer and require more IT resources. Application and business outages may occur more frequently and for longer periods. Service-level agreements (SLAs) or operational-level agreements (OLAs) may be compromised. IT problems are business problems. If contractual agreements are tied to application-level SLAs, your company may be fined or face litigation. Your company may lose customers or revenue. Your IT organization needs to regularly archive database data to control growth and maintain application and SLA performance. IT requires input from the business to define archive, retention, and end-user access requirements. 4

7 White Paper Data Privacy Challenges Most database applications used in a business setting contain information that is considered private, sensitive, or confidential. When testing, developing for, or training on these database applications, development teams typically make copies of the production data because it eliminates data errors and provides the most realistic environment for testing and development purposes. The risk of sensitive or private information being accessed or stolen multiplies with every nonproduction copy made. Keeping track of all copies becomes nearly impossible when testing, development, or training tasks are outsourced or sent off shore. To comply with data privacy laws, your company needs to ensure that sensitive information is being protected no matter where it resides. Sensitive, private, or confidential data must be classified as such. Line-of-Business Challenges The key to a successful GRC program is effective communication between line-of-business managers and the IT organization. IT looks to business teams to: Define the data s business context and application metadata Set end-user access requirements Determine regulatory compliance requirements and privacy policies associated with data Properly classify data to establish eligibility and schedules for retention or disposal Business process owners and records managers need to speak the same language as database administrators and data architects. For example, line-of-business managers must be able to articulate the criteria for archiving or deleting data in terms that IT can understand. And lines of business must coordinate across the enterprise to agree upon definitions, classifications, and usage requirements for shared data. When business teams properly classify database data, IT organizations can implement appropriate technology and controls at the lowest possible cost. Your company needs to ensure cross-functional communication and collaboration when it comes to putting data management best practices and solutions in place. Enforce Governance, Risk, and Compliance Programs for Database Data 5

8 The Right Strategy to Support GRC Programs: Information Lifecycle Management The Storage Network Industry Association defines information lifecycle management (ILM) as the policies, processes, practices, and tools used to align the business value of information with the most appropriate and cost-effective IT infrastructure from the time information is conceived through its final disposition. ILM provides a framework and a set of procedures for managing every phase of the data lifecycle, from development and testing to archiving and retirement. Backed by a solid ILM strategy, your company can establish more effective GRC programs, better enforce GRC policies, and reap greater returns from your investment in GRC programs. A key component of ILM is data classification. When classified correctly, data s retention and access requirements, usage, business value, sensitivity, and ownership can be properly managed in support of GRC policies (see Figure 1). Criteria for Data Classification Retention Access Usage Business Value WITHOUT ILM All data is treated equally Data may be retained longer than required or improperly destroyed Data volumes go unchecked, driving up maintenance, management, and storage costs How users need to access data is not considered for current or legacy systems Record authenticity and e-discovery rules and timelines may be compromised All data is stored the same, regardless of whether the data is used all the time or not at all For data that is used often, IT infrastructure costs increase Database performance degrades with increasing volumes of unused data Application SLAs or OLAs may be compromised Data s value to the business isn t taken into account when designing the IT infrastructure IT infrastructure management and maintenance costs may increase WITH ILM Data is treated according to its classification Records can be managed accurately Proper data retention, disposition, and audit procedures can be enforced Data volumes and corresponding management costs are controlled Data access requirements can be designed into the IT system architecture Legal requirements can be met during litigation Data is identified, partitioned appropriately, and stored in the most appropriate format and location Database performance improves IT infrastructure costs decrease When SLAs or OLAs exist, potential fines or litigation can be avoided The IT infrastructure is designed to reflect data s value to the business Storage, maintenance, and management costs go down Greater and faster returns on IT investments are realized 6

9 White Paper Criteria for Data Classification Sensitivity Owner WITHOUT ILM Private and confidential data is at risk of unauthorized access or theft, especially in nonproduction database environments Data privacy and security rules may be compromised Without assigned data ownership, unmanaged data volumes grow with associated risks WITH ILM Information is protected no matter where it resides Privacy rules are followed Risks of data security breaches are minimized Accountability and responsibility for data can be properly assigned and tracked, minimizing risk Improved communications between the business and IT result in greater efficiencies Figure 1. When data is properly classified as part of an ILM strategy, database data can be more effectively managed in support of GRC programs. The Right Tools: Database Archiving, Application Retirement, and Data Masking Once data has been properly classified as part of an ILM strategy, your company then needs, according to the Storage Network Industry Association definition, tools used to align the business value of information with the most appropriate and cost-effective IT infrastructure from the time information is conceived through its final disposition. Your ILM strategy should include tools for: Database archiving to manage data growth, relocate data to the most appropriate location based on its business value, maintain SLAs, enforce data retention and disposition, meet audit and compliance requirements, and keep costs down Application retirement to cost-effectively retain data housed in legacy database applications and reduce e-discovery costs Data masking to protect sensitive data in databases and reduce the risk of security violations Let s examine how these ILM tools serve to overcome the GRC challenges introduced earlier in this paper. Comply with Legal and Regulatory Requirements by Archiving Database Data and Retiring Legacy Applications When a company faces a lawsuit and needs to review its ESI for records relevant to the case, the cost of e-discovery is directly proportional to the volume of ESI, how easily accessible it is, and what format it is in. Specialized IT skill sets are necessary to access, maintain, and run reports from legacy database applications. Unless a company keeps these specialized IT resources on hand in case its legal department makes such an e-discovery request, the company runs the risk of not meeting deadlines, resulting in hefty fines. Enforce Governance, Risk, and Compliance Programs for Database Data 7

10 Furthermore, the Uniform Electronic Transactions ACT (UETA) Section 12 states that if a law requires that a record be retained, it needs to accurately reflect the information when the record was first generated and it needs to remain accessible for later reference. To be legally defensible, legacy data can be archived as long as it keeps its original appearance and can be accessed. Falling out of compliance can result in multimillion-dollar fines. An ILM strategy that includes database archiving and application retirement tools can help your company avoid these risks and fines. The right tools enable your company to: Evaluate legacy applications for their retirement eligibility Classify data within these legacy applications according to its retention requirements Retain archived data in a central location Archive the data model along with the data itself to preserve its referential integrity and application context Assign and enforce data retention and disposition policies Protect data against spoliation by ensuring the authenticity and immutability of archived data Place relevant data on legal hold to prevent disposition, even if the retention period has expired Because official records have been classified and archived, the location of the official source or original also becomes irrelevant during e-discovery. Archiving data in live production database applications that are rarely accessed, and retained only for compliance reasons, is also important. The right database archiving tools help you identify inactive data that can be relocated while maintaining data integrity and application context. The relocated data is then stored in a central, secure, immutable archive, which can be easily searched and accessed. By archiving database data and retiring legacy applications, your company can respond promptly to e-discovery requests, comply with deadlines and regulatory requirements, avoid penalties and fines, and ultimately control the costs of litigation. 8

11 White Paper Keep Database Data Manageable with Database Archiving Database archiving can help your company keep data management costs under control without sacrificing performance. When the business accurately defines data retention, disposition, and access requirements, IT can implement efficient, cost-effective solutions that centralize metadata collection, policy management, and execution across the enterprise. Archive stores can be standardized and made easily accessible for legal and compliance teams and line-of-business managers. Data age and access requirements directly translate into storage specifications, giving IT the flexibility to design solutions that are easier and cheaper to maintain and have lower licensing costs. Read-only, aged production data can be relocated to an on-line archive that maintains native application access for end users. Smaller production databases ultimately improve database performance and streamline operations. Costly server upgrades can be deferred or avoided entirely because aged data no longer bogs down servers. Maintenance windows shrink, as do recovery windows, improving IT support s ability to maintain SLAs with the same or fewer resources. Reduce the Risk of Security Violations by Masking Sensitive Data in Nonproduction Copies Database data that gets copied or replicated for nonproduction purposes exposes sensitive data to the risk of unauthorized access or theft. Industry studies highlight that most security violations relating to data access or theft involve internal personnel. Data masking tools enable companies to properly protect data that has been classified as sensitive, confidential, or private. Data is automatically masked during application cloning or data replication processes. Application-aware metadata ensures that masking occurs in a way that maintains the characteristics and format of the original data set. There is no manual interaction, so the risk of confidential data being exposed or stolen is greatly reduced. If publicly embarrassing data theft events can be avoided, so can exorbitant legal costs, fines, and loss of revenue due to lack of customer or market confidence. Enforce Governance, Risk, and Compliance Programs for Database Data 9

12 The Solution: Database Archiving, Application Retirement, and Data Masking Solutions from the Informatica ILM Product Family The Informatica ILM product family offers robust database archiving, application retirement, and data masking solutions. The solutions delivered by the Informatica products help companies better manage their growing database volumes and protect sensitive data so that they can establish more effective GRC programs, better enforce GRC policies, and reap greater returns from their investment in GRC programs. Informatica Data Archive Informatica Data Archive is highly scalable, high-performance software that helps IT organizations cost-effectively manage the proliferation of data volumes in databases, as well as in many other enterprise applications. The software enables IT teams to safely and easily archive data and then readily access it when needed. With Informatica Data Archive, IT organizations can identify and move inactive data to another database or to a secure, highly compressed, immutable file (see Figure 2). Application-specific business rules ensure that data integrity is maintained after data has been archived. All access to retired data is tracked and audited to establish a chain of custody. Figure 2. With Informatica Data Archive, inactive database data can be identified and archived to another database or to a secure, highly compressed, immutable file. 10

13 White Paper Informatica Data Masking Informatica Data Masking is comprehensive, flexible, and scalable software for managing access to sensitive data and reducing the risk of data breaches. The software enables IT organizations to prevent the unintended exposure of sensitive or confidential database data, such as credit card information, national identification numbers, names, addresses, and phone numbers. Informatica Data Masking protects confidential or sensitive data by masking it so that it can be safely replicated to nonproduction systems and de-identified for development, testing, and training purposes (see Figure 3). Figure 3. Informatica Data Masking prevents the unintended exposure of sensitive or confidential database data. Enforce Governance, Risk, and Compliance Programs for Database Data 11

14 Meeting GRC Challenges Informatica Data Archive and Informatica Data Masking meet the challenges that your compliance, legal, IT, data privacy, and line-of-business managers face in establishing and enforcing GRC policies (see Figure 4). Challenges Solution Benefits Informatica Product Compliance Archive database data Centrally manage retention and disposition policies Compliance officers and records managers can: Enforce and ensure retention, Informatica Data Archive disposition, and privacy Apply a legal hold to records policies that are relevant to legal cases and audits to prevent them from being purged Comply with internal, industry, and government regulations when the retention period expires Legal IT Migrate inactive and legacy data to a centrally managed, common database archive Ensure the database archive is centralized, standardized, accessible, and searchable Archive data to reduce production data volumes Maintain appropriate enduser access to archived data Legal departments can: Quickly and easily access and search centralized and standardized database archives Reduce the risk of missing e-discovery timelines while better controlling costs IT teams can: Reduce production data volumes Improve application performance Boost operational efficiencies Keep IT (e.g., hardware, software, and data management) costs under control Informatica Data Archive Informatica Data Archive Line-of- Business Archive database data Simplify the collection and management of metadata on how data is classified Align data classification with retention, disposition, and privacy requirements Meet all SLAs Line-of-business managers can: Classify database data so that effective data retention and disposition policies can be followed IT organizations can: Deploy the most costeffective technology to meet business requirements Informatica Data Archive and Informatica Data Masking 12

15 White Paper Challenges Solution Benefits Informatica Product Privacy Mask data in nonproduction copies Obfuscate sensitive data in a way that maintains likeness to the original data Data privacy and security experts can: Prevent unauthorized access to sensitive data without compromising IT s ability to effectively test, develop, and train Informatica Data Masking IT organizations can: Improve test data quality Figure 4. Informatica Data Archive and Informatica Data Masking handle all the challenges that your company faces in establishing and enforcing GRC policies The Proof: Informatica ILM Software in Action A large financial institution was struggling with its complex IT environment, which included several 30-terabyte financial application databases and database data that was more than 10 years old. For each production database, IT made six additional copies for patch, test, development, training, backup, and disaster recovery. Each copy contained sensitive information. Several legacy applications remained on unsupported technologies, relics of corporate acquisitions. This financial institution recognized that its unwieldy IT environment posed potential risks. The company used established ILM best practices to conduct a data classification and legal policy review and establish data management procedures in accordance with its corporate data governance policies. Informatica Data Archive was used to archive the last two years plus the current quarter of financial data from the financial database. Data from two to seven years old was archived to a highly compressed, file-based archive. All legacy applications, including servers and proprietary storage, were retired, retaining only critical data in a common archive repository. Data integrity and application context is maintained in the archive, and business users have complete access to the archived data for reporting. Informatica Data Masking was implemented on the table columns identified with storing confidential data, eliminating the risk of exposure to unauthorized users while maintaining all application level functionality. By properly aligning business requirements and technology with the GRC process, this financial institution reduced administration and maintenance costs, as well as avoided costs and risks. By relying on Informatica Data Archive and Data Masking for archiving database applications, retiring legacy applications, and masking sensitive data, this company successfully: Archived and compressed five years worth of data by 95 percent, reducing the size of the production financial database by 80 percent Moved all archived data from high-end, expensive storage systems to a more cost-effective storage system that requires less maintenance Reduced the production data size by 80 percent, decreasing the total raw storage footprint consumed by multiple copies of the financial application database by 75 percent Configured disaster recovery on the production system based on the database backup, avoiding the costs of expensive data replication software licenses Enforce Governance, Risk, and Compliance Programs for Database Data 13

16 Safely stored nonproduction test copies on lower-cost storage without compromising testing and development cycles or SLAs Cut database storage consumption in half over three years Reduced IT infrastructure costs by $15 million by database archiving and implementing tiered storage Avoided risks and costs of e-discovery and lost business due to data breaches Conclusion It s inevitable. The volume of data stored in your databases will continue to grow. The overall amount of ESI will increase. Without proper data volume management procedures in place, growing database volumes will inhibit your company s ability to implement, adhere to, and enforce GRC policies. The success of your GRC program depends on how you classify your database data and how you manage your database applications. Informatica Data Archive and Informatica Data Masking can help by: Moving data eligible for archiving to a highly compressed, immutable, easily accessible filebased archive, significantly reducing storage requirements Retiring legacy applications, relieving IT organizations of the cost of supporting archaic systems Shrinking data volumes to a controllable amount and archiving inactive data to an easily accessible central store, allowing legal teams to complete e-discovery searches within the prescribed deadlines Maintaining archived data in a centrally controlled archive repository, making it easier for records management teams to enforce retention and disposition requirements Upholding the performance of production databases because aged data is no longer slowing down servers and maintenance windows Avoiding the risk of unauthorized access to sensitive data By deploying Informatica database archiving, application retirement, and data masking solutions to control database data volumes and protect sensitive data, your company can confidently follow corporate governance information policies and reduce costs associated with compliance. 14

17 White Paper Learn More Learn more about the Informatica ILM product family and the entire Informatica Platform. For more information, call ( in the U.S.), or visit About Informatica Informatica Corporation (NASDAQ: INFA) is the world s number one independent provider of data integration software. Organizations around the world gain a competitive advantage in today s global information economy with trustworthy, actionable, and authoritative data for their top business imperatives. More than 4,100 enterprises worldwide rely on Informatica to access, integrate, and trust their information assets held in the traditional enterprise, off premise, and in the cloud. Enforce Governance, Risk, and Compliance Programs for Database Data 15

18 Worldwide Headquarters, 100 Cardinal Way, Redwood City, CA 94063, USA phone: fax: toll-free in the US: Informatica Corporation. All rights reserved. Printed in the U.S.A. Informatica, the Informatica logo, and The Data Integration Company are trademarks or registered trademarks of Informatica Corporation in the United States and in jurisdictions throughout the world. All other company and product names may be trade names or trademarks of their respective owners. First Published: November (11/23/2010)

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