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[Music].I also thought we'd start with a very.colorful picture which should be.appealing to Canadians I hope I didn't.forget any of the flags of the provinces.but I counted so there's 13 so I think.I'm okay so we're gonna we're going to.talk about I'm gonna talk specifically.about data residency but then this.presentation the next one and the one.after are all related basically to a.common topic of data governance or.information governance if you prefer and.we are in the midst @omg of wrapping the.various topics within the general.subject of data governance into a.coordinated initiative so we formed a.new working group at our last meeting or.two meetings ago.I don't know and we had actually a.meeting of what we now call the data.governance working group rather than.having a separate data residency working.group so we met on Sunday afternoon to.to progress our work so that's what I'm.going to describe a little bit and I.hope I used the right button here yes so.what is data residency and and why does.it matter we had to come up with a.definition actually at oMG it turns out.that when we looked at the issue which.was raised by a memorable empty to us.and that's how we kicked off the work on.on this topic we looked for a common.definition we found that there was not a.general definition that had been adopted.and and there was authoritative so we.had to look and and make our own it.hasn't been challenged since then it.seems to work so residency is is a set.of issues and challenges as well as the.ways to mitigate those challenges etc.the that is the the best practices in.this.area related to the location of data so.it's not the location per se if you say.my data is in Vancouver I hope that's.not necessarily a data residency issue.it is if the fact that it's in Vancouver.creates some problems versus the laws of.another province for instance so the.issue is where you put you the data and.the metadata where is the data in.transit or at rest and therefore what.what what my colleague Steven Woodward.calls the Geo jurisdictions which is a.term that's been used by ISO protecting.the data against unintended access or.other location related waste it matters.because you know it goes beyond issues.of privacy and security so data.residency is not just about the.protection of personal data and it.affects all sorts of types of.information it creates a number of risks.and it is hard to parse the legislative.texts that have a bearing on where you.can store your data and the the impact.if you violate unwittingly law or.regulation can be can be dire and.there's no not enough standards about.this so all sorts of data can be subject.to issues of residency obviously.personally identifiable information PII.tends to be the thing that you think.about first and then it means that the.issue of residency overlaps with the.issue of privacy and obviously patient.health information has sort of the same.status as PII but then you have.proprietary corporate information you.have all sorts of all everything related.to collaboration like emails and.presentations and calendar entries etc.obviously government information.military information anything that is.considered sovereign data.information subject to trade controls so.where you store technical information if.you're a I don't know a company that.makes complex systems may be relevant.because you may have government rules.against making some of that technical.information accessible from some.countries so if your information by law.or by government rule cannot be exposed.to people from North Korea you want to.know if North Koreans will have access.to the information if you're stored it.in a certain location or maybe if you.have a cloud provider that can load.balance between servers in Canada and.servers in India or in China would the.Chinese copy of the technical.information be accessible to North.Koreans and therefore create a problem.against some sort of embargo law so the.issue becomes very complex and you have.countries where information and natural.resources is also protected I don't know.what is the situation in Canada with.respect to oil and gas information but I.can tell you that in Russia and in.Venezuela and Venezuela may not matter.that much right now given the chaos.there but Russia certainly does matter.it is illegal to take any information.about the subsurface of Russia and take.it outside of the country so etc so the.the this my these are my slides about.try to scare you you know this after.that I'm gonna go a little bit into what.are some of the potential solutions or.directions but the first few slides.usually are the the horror story you.know of of data residency and as a.result if you get paralyzed by that and.if you're trying to totally avoid.exposure by not putting data elsewhere.that tends to go totally counter to all.the cost savings and the technology.evolutions that you've we've seen.recently including the ability to use.cloud services that where you do not.necess.control where the data is going to be.stored and for the cloud providers.themselves or the managed hosting.providers.it means being impeded in their business.development by potentially not being.able to satisfy the need for trust of.their customers that the data is going.to stay under control it may prevent a.multinational company from consolidating.operations for instance if employee.personal information you know so social.security numbers date of birth etc if.that needs to stay in the country where.the employee resides it means that a.multi multinational company would not be.able to have a single consolidated Human.Resources information system and.obviously that's not what companies do.today if you take if you take a company.that is multinational they usually have.a Singh an ER a central ERP system a.central HR is system a central CRM.system etc therefore they're gonna have.some personal information of people from.country a being stored in country B and.if you were not able to do that then all.sorts of efficiencies and business.processes would be impeded and then of.course you don't want to be in conflict.with authorities you don't want to have.your image tarnished in the press for.having had a data leak due to the fact.that the data was in a country where it.was less protected etc and and at the.end of the of the list there's the.societal impacts that can happen if IT.businesses and the holders the owners of.data as well as the custodians of data.are losing the public's trust that they.are responsible stewards of information.so an example one is migrating to the.cloud what if I want to migrate stuff.that was on premises and put it in the.cloud but my cloud providers are.somewhere else or they.are liable to load-balanced their.servers between multiple countries so.even if there's just the possibility.that they might move my data to another.country I can't even see my pointer is.so small that that's always regulations.maybe unclear and then you have a.perverse effect which is that a number.of CIOs and IT managers are using this.argument to say we're not going to go to.the cloud and they're not necessarily.doing that because they're worried about.your personal information they're doing.that because they're trying to protect.their jobs and not lose their their data.center which is the pride of their.career and they don't want to go to they.want to resist the orders from on high.to move to the cloud by saying oh you.know if we move to the cloud we're not.going to know where the data is stored.so I'm not going to do it which you know.rejects a perfectly rational policy of.going to the cloud I've been given the.example by clients in Mexico who said no.no we cannot do that.because their data might be outside of.the country I said show me the law that.says that you cannot store the data.outside of the country they were unable.to show it to me so it was clear that I.mean their concern might have been.justified but their claim that they.rejected the cloud because it was.forbidden due to a governmental law was.actually a fake one okay but there have.been counter example there was a Danish.Bank that several years ago obtained.authorization from their government to.store their data in a uk-based cloud.maybe that will change next March after.brexit I don't know genomic data sets we.discovered during the early days of the.working group I was chairing that the.exchange of genomic information between.research institutes and hospitals around.the world is is very fragile with.respect to data residency because of the.risk that the sample data that.being used might not be anonymized.sufficiently to mask the identity of the.subjects who provided the the DNA.information or could be re identified.again because anonymization is not.always is not always foolproof we have.this example of petroleum reserves and.and in particular the example of Russia.but that I mentioned if if a geologists.from from Calgary goes to visit a.colleagues at a conference in in in.Moscow or in Siberia and and put some.data on his laptop in order to run his.own algorithm for oil reserve.calculation and forgets to delete that.data before getting on the plane to come.back he is violating Russian laws and.could in theory may be his if his laptop.was inspected at the border and found to.contain this particular model of of.another reservoir he could potentially.be finer or arrested and tried for spy.for espionage things like that okay and.I've seen examples of countries that.were unable to consolidate IT resources.because government of one country said.you cannot take my data and put it or.our data and send it to a data center in.another country.we even had a an interesting example I.ran into where which was in Brazil where.petrobras the oil company said yeah sure.you can take your data to Houston.process it and return it to us but the.government requires payment of.value-added tax on the improve increased.value on the value added to the data by.processing it well how do you value how.many dollars is that processing worse.guess who decides on the value of the.data exported and the value re-imported.the Treasury Department which so they're.judge and party they can arbitrarily say.you exported data worth X and we.imported in it's worth 2 X and you're.gonna have to pay 60% VA tu or 60%.customs duty on the value of that data.force example is the famous at least in.my in my world it's a famous example of.Microsoft versus the Federal Bureau of.Investigation in the United States where.a citizen an American citizen was.suspect of have being a drug dealer the.FBI wanted to seize the person's.communications the person in office 365.from Microsoft on the Irish server of.Microsoft because they had claimed that.they were a European citizen when they.opened their office 365 account that.claim was probably false but anyway.that's where their data was in Microsoft.sent to the FBI we cannot give you the.data it's on a server in Ireland and the.case was actually in the courts for four.or five years reach all the way to the.US Supreme Court and just before it had.to be adjudicated by the US Supreme.Court the American Congress passed the.law and said oh by the way it was called.a cloud act and it was an amendment to a.previous law and it said oh no we the US.has the right to obtain data from.anywhere in the world about things like.that so so Microsoft then decided to.comply but of course that doesn't mean.that the Irish or the EU are very happy.about.that so there's the question of which.law prevails there is a proliferation of.laws around the world this is just a few.you can you can perhaps with the name of.the countries from the back of the room.you can see the slides I have all the.details if not on the slide because I I.you know tiled all this together so you.cannot read all the details if someone.is interested let me know and I will.send you the details I have this is.actually courtesy of IBM but these are.some of the examples of the regulations.that exist and red means it's very.straightened it stringent and in place.yellow means it's it's a proposed.regulation there's not that many green.ones even if you unmask the damask.slides so there's a bunch of countries.in the world and this is just a subset.that have rules about financial data.that cannot leave the country natural.resource data PII pH I patient health.information etc you also have.regulations and trade pacts Boeing has.done quite a study on this that they.shared with us and of course now we have.the EU GDP are which is enforced since.since twenty-fifths met so we did a.study at omg we created a request for.information we should it we got.responses from a bunch of people we.compiled the responses and the problem.we found the main problem at least the.thing that scares me the most is the.fact that when you say who's in charge.of governing or managing data residency.in your company the answers are scarily.imprecise or inoperative and and the.first four bullets here are actually.exact quotes from the responses I got.and when people tell me there is a cross.functional data residency working group.under the in the legal department or.even more vaguely various roles.including policy security technical.legal information model.or a collaboration of engineering.compliance and legal etc basically when.when there are multiple people in charge.of something you know that if an.accident happens you're gonna get with.what we what we ironically call the.circular firing squad.where everybody is gonna fire at each.other you know you call it's finger.pointing to the image of a circular.firing squad is is is telling and if.everyone is in charge no one is in.charge and and we all know from.responsibility assignment matrix is you.know the RACI principles responsible.accountable consulted and informed that.you can have multiple people responsible.for various things but you need to have.only one person or one role accountable.otherwise things won't happen and it is.very clear that the current state of the.art if you want in commercial and.government organizations I think also is.that there is vagueness and uncertainty.and therefore insufficient management of.the of the issue so sometimes it's at.the business line level sometimes it's.the CEO level well frankly the CEO.probably doesn't understand 10% of the.issue and it's not going to be the CEOs.that the top of mind issue for the CEO.on a daily basis so if you push it up to.the top I think that's an easy solution.but it's probably not very effective.sometimes it's a CIO the CTO or the.legal office and that may be fine.sometimes is the CIO and the chief.security officer together etc so so.there is a lot of immaturity in how data.residency is being managed and generally.governance is not very good so when we.issued a discussion paper 30 page paper.that was published in May 2017 so year.and a half ago basically we we actually.in the discussion paper.were pretty normative or we were pretty.firm on five steps that needed to be.taken in order to correctly handle data.residency issues establishing governance.structure making sure we we managed.metadata defining the processes doing.monitoring and reporting and if possible.implement tools to track where where the.information is so we've we've discussed.all that and then we issued in December.I think it was probably only announced.in January but it was adopted in.December of last year so December 17.less than a year ago they did a.residency maturity model dr mm which is.here and you don't have to read.everything but basically and especially.since it's cut off a little bit at the.at the bottom but you can still read it.so it's him inspired by the software.engineering institute capability.maturity model the original one from.1990 or 1991 that defined the the.maturity of software engineering so we.took the same five level definition.initial repeatable define manage and.optimizing with the fact that it's.adjourned.that is optimizing not optimized being.very important semantically because it.means when you're at the optimizing.level unit it never ends.you're in a continuous improvement.process so it's important that a lot of.people make the mistake because it says.define management is the optimized.you're never completely optimized you.can only be optimizing so it helps to.know your parts of speech and to have.learned a little bit of sentence parsing.in school because you can say I believe.in jaren's so so there's a definition.for each of the five levels and there's.a set of key process areas which are the.things you need to do in order to be.able to say you're at that level so you.know it starts with awareness and.informal.practices but then it goes on to having.formerly documented process a taxonomy.of your data that may be sensitive.training etc and then it keeps going up.and in order to be optimizing you have.to have some sort of continuous process.of monitoring detecting the deviations.auditing your data location so for.instance if you have a cloud provider.you may need to have your the contract.with a service provider telling you.where they're storing the data what form.of notification they're going to give.you if they intend to move the data.somewhere else and you may need to have.some monitoring tool that allows you to.interrogate the cloud providers servers.and say where is this piece of data now.please report back to me on which.instance of which machine is currently.holding such data so that I can verify.that it is in Vancouver not in Shanghai.things like that okay so we proposed.this at the end of last year we really.want feedback on it more feedback than.we have gotten and we're trying to.propose it to some other organizations.like NIST in the US National Institutes.for standards for next whatever its NIST.these technology as maybe standards I.don't remember what they were what they.call themselves.we owe a mg is just as bad as the.government with acronyms so we we know.the pain anyway we were looking at that.maybe NIST could make it into a special.publication and then that would help us.at oMG get more visibility but so there.is a white paper that is 30 pages long.and there's a nine page paper that.contains as a single page this model and.all of these documents are available.from the UMG they are public you can.actually probably.google them and find them by just moving.them and the program contains actually.information on the page where my.presentation is U is listed you can.actually get some of that information in.there so follow that URL get those.papers send us feedback we'd love to see.this being more a published more and.more used so we started three years ago.three and a half years ago as I said we.formed a working group we issued an RFI.we partnered with the cloud standards.customer council which no longer exists.it's become the cloud working group of.the object management group and I also.co-chair it so it's a little bit.incestuous but at least it means the two.efforts are well coordinated.I'm not that schizophrenic we publish.the discussion paper we publish the.maturity model we've been given a whole.series of tutorials and webinars some of.those webinars or most of them are.recorded and available for replay if you.need more information let us know and.then where the data residency effort is.part of the new data governance working.group we have a bunch of people who.participated in in in our work but we.have a lot of organizations who said.well we could tell you what we're doing.or what we're not doing about data.residency but we don't want other people.to know what we're not doing because.they might jump on the opportunity to to.trash us in the press a week there there.was an issue of retention of information.so summary we think it's a serious.challenge we think that mostly people.need to learn about it and understand.where the risks are for their respective.organizations and then people need to.mobilize themselves in terms of.establishing governance of what they do.with their data with respect to their.geographies where it resides where it.can be transferred to or through whether.who is using it from where if you have a.remote helpdesk in India.and those people get to see the.information on the screen because for.the purpose of the helpdesk they're.observing a user screen does that mean.that your effect you were effectively.exporting to India the one database.record that's being displayed on the.screen when the helpdesk agent is.observing you that people don't think.about that sometimes.so again learn about it and then develop.business and technical approaches to.mitigate the risk we're looking into.what standards may help.so we're thinking of issuing an RFP to.ask for to create a standard for the.formalization of data laws and.regulations because they're all written.in various languages and in the u.s..people say they're all written in.English here I would say they're all.written in English and French but these.are equally ambiguous languages so can.we formalize what the obligations are in.order to be able to reason about them.take a piece of data in its description.take a regulation and its formal.description mash them together and say.red flag you cannot do that or you.cannot put it outside of your country.etc and therefore in order to.participate in this learn what we're.doing you can participate in the.actually it's no longer data residency.working group is data governance working.group now and participation is in if.it's just to the working group is free.as long as you ask us for an invitation.to come to a meeting and we will have.some conference call meetings so they're.not all face to face meeting take our.work and use it as you please it's there.it's out there for you to use and even.though I said the data residency working.group has become part of the data.governance working group we still have a.URL OMG org slash data.- residency so there's still a page that.gives you access to.the document we have so there's a three.minutes left for questions specifically.on data residency but the next.presentations are also about other.aspects of data governance questions any.questions um in your discussions do you.talk about technology solutions to this.problem I'm thinking about things like.encryption anonymization or even you.know the providers tendency these days.to create cloud repositories in.different governments to serve residency.issues challenges yes we do.not necessarily to the extent you might.like to see but we talk about encryption.we talk about the issue that sometimes.when you encrypt your data some.governments tell you that you need to.escrow the keys with the government.which that sort of can defeat the.purposes if what you're concerned with.is accessed by a foreign government so.we do discuss that we also discuss some.other technologies some of which come.from oMG and some from others that could.be used to add metadata about residency.to the data so things like exact mole.and and and other technology so yes.there is some discussion of it in the.paper probably something that would.benefit from being augmented anybody.else.I've heard a lot of things about this.the Patriot Act and I guess you sort of.touched on the fact that the u.s. is.able to to access any data around the.world is that something that that we.need to be aware of if all these.companies that are becoming our cloud.vendors even though even though the data.resides within Canada is that something.that needs to be considered or is likely.so as you know before gdpr existed there.was a thing called the I mean you know.the Europe of as you know has been a.leader in terms of you know regulations.for privacy and that has come out in the.in the form of the gbbr but before that.in the fall of 2015 there was a problem.because the there had been a so called.eu-us privacy shield in place where the.European a European Commissioner had.decided to allow US companies to self.certify as being compliant with the.handling of data of EU citizens and the.EU Court of Justice adjudicated in.October 2015 that that allowance was not.valid and they killed it which was a.very important thing and if you read the.EU c.j decision it's actually quite.amazing the judge who the Supreme Court.of Justice judge who wrote the decision.explicitly said that in their.consideration was the fact that the.Patriot Act killed any credibility that.the US companies could sell certify for.protecting your data so that's that's an.anecdotal evidence but it is an.anecdotal evidence that your concern is.absolutely well-placed and that the and.and look at the cloud act that Congress.in the u.s. enacted last year because.that is a bit.arrey because it says we have the right.to get data anywhere in the world if.it's data pertaining to someone that.we're that we're investigating that's a.very broad power Thank You Claude.[Music].[Music].you.

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