With organizations relying more on cloud computing, cross-border data processing, and online services, they tend to transfer personal data across borders out of Saudi Arabia. Such transfers must, however, comply with tight compliance protocols under the Saudi Personal Data Protection Law (PDPL) to ensure data security, privacy, and regulatory compliance.
In order to support organizations, SDAIA (Saudi Data and Artificial Intelligence Authority) has released risk assessment guidelines that must be followed before sending data outside kingdom. This article provides a step-by-step, detailed checklist to help companies evaluate and mitigate risks effectively.
Phase 1: Preparation – Understanding Your Data Processing
Prior to transmission of data across borders, one must determine how the personal data is collected, processed, stored, and transferred. The following questions will assist organizations in determining if a risk assessment is required and form the basis for compliance.
1. Determine if a Risk Assessment is Required
- Is personal or sensitive data, including health, money, biometric, or government data, being processed by the organization?
- Will the data be exported out of the country and, if so, is the receiving party subject to a jurisdiction other than the Saudi data protection legislation?
- Are external or third-party cloud providers involved in the data processing operation?
- Will the transfer involve risky data operations such as profiling, automatic decision-making, or AI-driven analysis?
2. Determine Data Processing Operations
- What kinds of personal data are handled (e.g., name, address, contact details, payment details, biometric data)?
- On what legal basis the data are to be processed and for what initial purpose (e.g., analysis, fighting fraud, customer relationship)?
- Is internal data processing performed, or is it outsourced to a third party? If outsourced, what is the agreement in place that controls the data processing?
3. Map the Data Flow
- How is the data being collected (e.g., online forms, mobile apps, biometric scanners, customer databases)
- Where is personal data located and what type of storage infrastructure do they use (e.g., on-premises servers, private cloud, public cloud, hybrid storage)?
- What is done to the personal data while it is being processed? Is AI logic, machine learning models, or analytics applications used on personal data?
- Who or what systems have access to the personal data? Is such access restricted to authorized employees, and is there adequate role-based protection?
- Is the data being transferred to third parties? If so, which countries, and under what legal agreements?
- What is the data retention policy? For how long is the data being kept, and what secure deletion mechanisms are there?
Phase 2: Risk Evaluation – Identifying and Assessing Threats
After the data processing environment is modeled, the next step is to analyze the probable risks of the transfer. This step involves identifying vulnerabilities, threat assessment, identifying potential impacts, and likelihood of risk.
1. Identify Security Vulnerabilities
- Are robust encryption practices employed to protect data in transit and storage?
- Are authentication and authorization controls sufficient to prevent unauthorized access?
- Has security policy compliance review been done for third-party data processors?
- Are there any known security weaknesses in the organization's existing infrastructure?
2. Review Compliance Risks
- Does the destination country have data protection law that is as good as or better than Saudi PDPL?
- Are there data processing agreements (DPAs) established with third-party suppliers?
- Are there regulatory restrictions on the transfer of data related to financial services, healthcare, or other vital industries?
3. Evaluate Potential Threats and Their Impact
- Can unauthorized individuals have access to the data due to poor security controls?
- Are there possible threats of third-party vendors' or cloud providers' data misuse?
- Could the company face legal consequences if it fails to comply with Saudi PDPL?
- What would be the cost and reputation damage from a data breach?
4. Determine the Probability of Risk Occurrence
- To what degree can it be expected that transmission or storage of the data is likely to be the victim of a cyberattack?
- To what degree have third-party cloud providers and third-party vendors had a past history of security in working with this data?
- Have company security policy as well as employee sensitivity programs been appropriately integrated?
5. Define Expected Risk Events
- What type of incidents would be exhibited by a breach of data security controls?
- What are the signs of an emerging security threat that should be dealt with?
- How quickly is the organization capable of detecting and responding to breaches in data security?
6. Determine the Overall Level of Risk
- Are identified risks labeled high, medium, or low based on their impact and probability?
- Are enough mitigation controls implemented to reduce the risk to a level that's acceptable?
- Would alternative solutions, such as local data storage, be sought in an attempt to avoid high-risk scenarios?
Phase 3: Cross-Border Data Assessment – Ensuring Security and Compliance
If a transfer of data is unavoidable even with the risks determined, organizations must employ legal, technical, and organizational measures to assure compliance.
1. Confirm Recipients and Data Transfers
- Who are the recipients of data, and are they equipped with adequate security protocols?
- Are third-party processors and cloud services providers bound contractually to follow Saudi PDPL?
- Have the recipients completed a complete security and compliance audit?
2. Implement Security and Legal Safeguards
- Is all personal data encrypted prior to transfer?
- Have data minimization principles been applied to ensure that only the data needed is transferred?
- Are legally binding contracts such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs) entered into?
3. Record Risk Mitigation Measures
- Do incident response plans exist in case of a security incident?
- Is the right of access to data removed if a third party is no longer in compliance?
- Does there exist some system of monitoring compliance on an ongoing basis by third-party providers?
Phase 4: National Impact Considerations – Broader Implications
Cross-border transfers of personal data have broader implications at the national level, especially when they signify large-scale processing or are concerning sensitive sectors.
1. Assess Large-Scale Processing Risks
- Is the transfer of large volumes of data affecting thousands or millions of individuals?
- Would a data breach result in public loss of confidence, financial loss, or national security risk?
- Is the data connected to sensitive areas such as finance, healthcare, or government?
2. Review Safeguards and Alternative Solutions
- Do existing security procedures adequately prevent data breaches?
- Can fines for non-compliance be levied due to insufficient compliance measures?
- Should the data stay in Saudi Arabia instead of being exported overseas?
Final Thoughts:
If your organization is unable to safely check every compliance box, it might be forced to rethink its data transfer strategy in order to become fully compliant with Saudi PDPL. Companies must weigh security, compliance with law, and considerations affecting the country when making decisions regarding cross-border data transfer.
If you've used SDAIA's risk assessment tool before, I'd love to hear your opinion on how effective it is in detecting and mitigating risks.
