19NOVEMBER 2020carrier system adds to the insured record. These additions to the chain enrich the information, but can also add risk if there are inaccuracies in the data chain. Thus, in many cases, having a review of the data enriching the chain of the insurance record is not only a good practice but should be required. Figure 2 Data chain of an auto insurance recordThe integrations and connectivity used to enrich a product and optimize its creation can also sabotage it. The data integrity in the data chain or the material quality in the supply chain can affect the performance of the end product. Whenever software is an element of a chain, the risk of sabotage can be unknown until years later, due to defects undiscovered until certain software features and functions are used.Starting with the design process of the product, technology, security, and legal/compliance teams must scrutinize every part of the supply chain. By involving these teams upfront, security can be built into the product to mitigate likely risks. In particular, legal/compliance's perspective on the ramifications of not moving forward with proposed changes can be very helpful in mitigating expensive and likely risks--helping protect the company's financial stability. A risk-based assessment process for third parties providing parts and materials for the supply chain is also critically important, beginning with knowledge of every item's source.It is also important for the data chain to follow these similar concepts:1.Include technology, security, and legal/compliance in the design process2.Know where the data elements will originate so third-party service providers can be assessed using a risk-based approach3.Require your third parties to perform assessments on their third parties to strengthen the data integrity of the data chain4.Conduct periodic assessments of third partiesThus, the elements that make up the data chain forinformationare very similar to the materials that make up the supply chain for a manufactured product, such as an automobile. Many of these elements and materials come from third parties. These third parties can affect the product's end quality and the reputation of the manufacturer or the steward of the data. In summary, companies must take a risk-based approach to assessments, adapting methods to deal with risks that are continually changing. It is just as important to know the data elements in the data chain that make up an insurance record's information as it is to know the materials and software in the supply chain for an automobile.
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