Data Security & Privacy

How sensitive compliance data is protected, accessed, and audited. Defense-in-depth security architecture designed for regulated financial services.

Security Architecture Overview

The system handles highly sensitive compliance data. Security is implemented at multiple layers:

Security Layers

  • Network Layer: TLS 1.3 for all communication, private VPC, DDoS mitigation
  • Application Layer: Input validation, rate limiting, API authentication
  • Data Layer: Encryption at rest, row-level security, audit logging
  • Access Control: Role-based access control, multi-factor authentication
  • Key Management: HSM-backed encryption keys, automated rotation
  • Audit & Detection: Logging, intrusion detection, anomaly detection

Data Classification

Compliance data is classified by sensitivity, with corresponding protection levels:

ClassificationExamplesProtection Level
CONFIDENTIALAudit findings, project test results, risk assessments, internal test dataHighest — encryption, role-based access, detailed audit logging
INTERNALAudit metadata, compliance metrics, approved reports, aggregate statisticsHigh — encryption, access logging, department-level access control
PUBLICCompliance frameworks, standards references, aggregate compliance metrics (for regulators)Standard — encryption in transit, public availability

Data Access Rules

  • Findings: Only accessible to audit sponsor, compliance officers, and assigned approvers
  • Audit Trail: Restricted access to authorized individuals; external auditors can request verification proofs
  • Remediation Status: Visible to assigned party and compliance officer; restricted view for project team
  • Aggregate Reports: Broader distribution (board, management) but individual findings not visible outside governance chain

Encryption Strategy

Encryption protects data in transit and at rest:

Data in Transit

  • Protocol: TLS 1.3 for all HTTPS connections
  • Certificate Management: Auto-renewing, issued by trusted CA, pinning for mobile clients
  • APIs: OAuth 2.0 with PKCE for mobile apps
  • Enforcement: HSTS enabled; HTTP redirected to HTTPS
  • Monitoring: Alert on certificate expiry, unexpected certificate changes

Data at Rest

  • Database Encryption: AES-256 transparent data encryption (TDE) at database level
  • Blob Storage: Server-side encryption for all document storage (S3, Azure Blob)
  • Backup Encryption: All backups encrypted with same key as source
  • Key Management: AWS KMS / Azure Key Vault for master key management
  • Key Rotation: Automatic rotation every 90 days; re-encryption of all data on rotation

Encryption Key Management

  • HSM-Backed Keys: Master encryption keys stored in hardware security module (HSM), never in software
  • Key Separation: Different keys for database, blob storage, audit trail
  • Access Audit: All key accesses logged; alerts on unusual patterns
  • Disaster Recovery: Encrypted key backups stored in secure vault with multi-person access control
  • Key Compromise Procedure: If key compromise suspected, documented process for key rotation and data re-encryption

Document Encryption Detail

  • At Upload: Document encrypted client-side before transmission (defense in depth)
  • In Transit: TLS 1.3 protects already-encrypted document
  • At Rest: Server-side encryption applied as well (double encryption)
  • Key per Audit: Can optionally use separate key per audit for additional isolation
  • Access: Only decrypted in memory when user views; never stored decrypted

Access Control & Authentication

Role-based access control restricts data visibility to authorized personnel:

Authentication

  • MFA Required: Multi-factor authentication for all users
    • Corporate SSO (Okta, Azure AD) for main authentication
    • TOTP or hardware security key for second factor
  • Session Management: Sessions expire after 30 minutes of inactivity; longer for batch operations
  • Password Policy: N/A (SSO-based); but if local auth, enforces strong passwords + periodic change
  • Account Lockout: After 5 failed login attempts, account locked for 30 minutes
  • Audit Logging: All login attempts logged (success and failure)

Authorization & RBAC

Role Hierarchy:

RoleCan AccessCan Perform
System AdminAll data, all auditsUser management, system configuration, audit trail verification
Compliance DirectorAll audits, all findingsRule management, audit approval, reporting
Compliance ManagerAudits in assigned department(s)Approve findings, manage remediation, create reports
Compliance OfficerAssigned audits onlyValidate findings, escalate exceptions, view remediation status
AnalystAssigned audits only (view/comment)Monitor analysis, prepare findings summaries
Project TeamOwn project findings onlyView assigned remediation tasks, provide status updates
Auditor (External)Audit trail metadata only (no findings)Verify audit trail integrity, request crypto proofs

Row-Level Security (RLS)

  • Database Enforcement: RLS policies in database ensure queries automatically filtered by user's accessible projects/audits
  • No Privilege Escalation: Cannot query findings for project you don't have access to (enforced at DB level, not app level)
  • Audit Department Separation: Compliance Officer can only see audits in their assigned department
  • Project Manager Isolation: Project managers see only remediation tasks for their projects, not raw findings

Data Access Logging

  • What's Logged: User ID, timestamp, action (view, download, export), data accessed (audit ID, finding count), result
  • Retention: Access logs retained for 5 years minimum
  • Alerts: Real-time alerts for suspicious patterns (bulk download, after-hours access, etc.)
  • Query Audit: All database queries logged; suspicious patterns escalated

Network Security

Network-level controls protect data in transit and limit attack surface:

Network Architecture

  • Private VPC: All system components in private virtual cloud (no direct internet access)
  • Web Tier (Public): Web servers behind load balancer with DDoS mitigation (Cloudflare, AWS Shield)
  • Application Tier (Private): API servers in private subnet, accessed only from load balancer
  • Database Tier (Highly Restricted): Database servers accessible only from application servers via private connection
  • Encryption Tier (HSM): HSM in physically secure data center, accessed only by key management service

DDoS & Attack Mitigation

  • DDoS Protection: AWS Shield Standard + Premium with automatic attack detection
  • Rate Limiting: API rate limits per user/API key to prevent brute force attacks
  • WAF (Web Application Firewall): Rules to block common attacks (SQL injection, XSS, etc.)
  • IP Whitelisting: For admin access, IP whitelisting to known corporate networks
  • API Key Rotation: Service-to-service API keys rotated every 90 days

Intrusion Detection

  • Network IDS: Real-time intrusion detection scanning all ingress/egress traffic
  • Endpoint Monitoring: EDR (endpoint detection & response) on all servers
  • SIEM Integration: All logs forwarded to SIEM for centralized analysis and correlation
  • Alerting: Real-time alerts on suspicious activity with automated response triggers

Data Retention & Deletion

Compliance data is retained according to regulatory requirements and securely deleted when no longer needed:

Retention Policy

Data TypeRetention PeriodJustification
Audit Records & Findings7 years minimumRegulatory hold for financial services (SOX, GLBA)
Audit Trail / BlockchainIndefiniteImmutable archive for regulatory inspection
Supporting Documents3 years after closureFull audit reconstruction capability
Access Logs5 yearsCompliance investigation and incident response
System Logs1 year (cold storage 5 years)Incident investigation and diagnostics
Personal Data (if any)Per GDPR/PIPEDA: Deleted on requestPrivacy regulation compliance

Secure Deletion

  • Method: Cryptographic overwrite (delete encryption keys, render data unrecoverable)
  • Verification: Automated verification that deletion completed successfully
  • Audit Trail: Deletion events logged and cannot be reversed
  • Disaster Recovery: Deleted data confirmed absent from all backups before closure
  • Certificate of Destruction: On request, provide proof of secure deletion

Data Export & Portability

  • Subject Access Requests: On request, user can export all personal data held by system (GDPR, PIPEDA compliance)
  • Format: JSON or CSV, encrypted, delivered via secure channel
  • Timeline: Fulfilled within 30 days (regulatory requirement)
  • Right to be Forgotten: Personal data deleted on request (except where regulatory hold applies)

Backup & Disaster Recovery

Data is backed up securely and can be recovered in case of system failure:

Backup Strategy

  • Frequency: Full backup daily, incremental backups every 6 hours
  • Encryption: All backups encrypted with same keys as source (can decrypt backup with production keys)
  • Storage: Backups stored in separate AWS region (geographic redundancy)
  • Retention: 30-day rolling window of backups; indefinite retention for year-end backups
  • Testing: Monthly restore tests to verify backup integrity and recovery time

Disaster Recovery Plan

  • RTO (Recovery Time Objective): 4 hours maximum (target: 2 hours)
  • RPO (Recovery Point Objective): 6 hours maximum (minimal data loss)
  • Failover Automation: Automated failover to secondary data center if primary fails
  • Testing: Quarterly DR drills; unannounced tests to verify readiness
  • Communication: Defined communication plan if system unavailable > 1 hour

Business Continuity

  • System Redundancy: All components deployed across multiple availability zones
  • Database Replication: Real-time replication to secondary database in different region
  • Audit Trail Resilience: Blockchain audit trail replicated across 3+ independent nodes
  • Manual Operations: If system down, compliance team can operate audits manually using exported data

Vulnerability Management

Proactive approach to identifying and remediating security vulnerabilities:

Scanning & Assessment

  • SAST (Static Application Security Testing): Automated code analysis pre-deployment; blocks deployment if critical vuln found
  • DAST (Dynamic Application Security Testing): Automated penetration testing in staging environment weekly
  • Dependency Scanning: Continuous scanning of third-party libraries for known vulnerabilities
  • Infrastructure Scanning: Cloud security posture assessment; alerts on misconfigured security groups, unencrypted buckets, etc.

Penetration Testing

  • Frequency: External penetration test semi-annually by independent firm
  • Scope: All attack surfaces (web, API, mobile, infrastructure)
  • Results: Findings documented, prioritized, remediation tracked
  • Retesting: After critical/high vulnerabilities fixed, retesting confirms remediation

Vulnerability Remediation SLA

  • Critical: Fixed within 24 hours (or system taken offline)
  • High: Fixed within 7 days
  • Medium: Fixed within 30 days
  • Low: Fixed within 90 days (or with next major release)

Zero-Day Management

  • Monitoring: Real-time alerts for newly disclosed vulnerabilities in used libraries
  • Temporary Mitigation: If patch not available, implement WAF rules to block exploitation
  • Patching: Emergency patching procedure for critical zero-days (within hours)

Compliance & Certifications

System security verified and certified by independent auditors:

Compliance Standards

  • SOC 2 Type II: Annual audit covering security, availability, and confidentiality
  • ISO 27001: Information security management system certification
  • NIST Cybersecurity Framework: Alignment with federal security standards
  • OWASP Top 10: Regular assessment against web application security standards

Audit Reports

  • Available: SOC 2 report available to customers under NDA
  • Frequency: Updated annually with new audit results
  • Third-Party Verification: Reports signed by independent auditors