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POPI complicates BI, data analytics

Kirsten Doyle
By Kirsten Doyle, ITWeb contributor.
Johannesburg, 19 Feb 2015
POPI will have a considerable impact on BI and data analytics, says independent consultant and privacy advisor, Russell Opland.
POPI will have a considerable impact on BI and data analytics, says independent consultant and privacy advisor, Russell Opland.

The Protection of Personal Information (POPI) Bill has been the topic on all local businesses' lips, with much of the debate focusing on how long companies will be given to comply, what the cost implications will likely be and how onerous the bare minimum requirements are likely to be.

At the ITWeb Business Intelligence Summit 2015, to be held on 17 and 18 March at Vodacom World, Midrand, independent consultant and privacy advisor, Russell Opland, will speak about the impact of POPI on BI and data analytics.

POPI has implemented fairly strict information processing principles, including processing limitation, which insists processing must be lawful and personal information may only be processed if it is adequate, relevant and not excessive given the purpose for which it is processed.

In addition, the Bill has introduced purpose specification, which means "personal information must be collected for a specific, explicitly-defined and lawful purpose related to a function or activity of the responsible party. The responsible party must take steps to ensure that the data subject is aware of the purpose for which his/her personal information is being collected."

Another principle that will complicate the data analytics process is POPI's "further processing limitation", which means should personal data received from a third party be passed on to the responsible party for further processing, the further processing must be compatible with the purpose for which it was initially collected.

Due to these regulations, Opland says POPI has created a great deal of uncertainty and worry on the part of large business, in particular, who are engaged in data analytics and BI.

"This is because data analytics is typically considered by business to be "further processing" under the Act, which is restricted to being compatible with the original purpose for which the information was collected, unless the data subject's consent is obtained, or other limited exceptions apply."

In other words, Opland says, if a customer opens a cheque account (original purpose), performing data analytics on their transactions could be interpreted as "further processing" requiring their explicit consent.

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"Many organisations are attempting to address this by inserting consent clauses in their standard terms and conditions agreements, but this is not likely to be compliant with POPI, because the data subject will not be seen to have a choice."

During his presentation, Opland will discuss more effective ways of addressing POPI data processing limitations.

C-level executives and other senior business and IT decision-makers will gather at the summit in March for two days of intensive debate and networking, followed by half-day workshops on the third day. Click here to find out more.

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