Guest Comment: Proposed privacy reform creates a talent shortage
Recent legislative change announced by the Gillard government and supported by the opposition, has focused attention on our credit industry and how credit reporting is conducted in Australia.
The tabling of the Privacy Amendment Bill has forced companies to examine privacy reforms and new protection and security for the financial services industry and consumers.
Front of mind for most financial institutions is the actual idea of the government signing this off into law.
Firms are already focusing on positive reporting and there is evidence that this legislative change is being prepared for with structured-project and infrastructure programs.
But what is the next phase? What are the business opportunities and challenges of this potential reform? What should organisations currently be doing to maximise the benefits? More to the point, why are some firms seemingly lagging behind and waiting for a clearer path on the law, viewing this as a large regulatory burden?
While the tabling of the reform has been expected for some time now, general international trends indicate resourcing requirements have experienced challenges around timing and the ability to access high-calibre talent. Hiring in Australia and New Zealand to date has focused on project and infrastructure roles, and will continue to flow through to design, technology solutions, risk analytics and modeling.
A key challenge for employers will be to grasp the unique aspects of the Australian credit reporting market. Though first appearances suggest these markets are similar to the USA, UK and South Africa, there are still significant differences. The structure of the Australian reform is far more complex than any of these markets and the allowable uses also exclude marketing. Not to mention the severe penalties for breaches of the rules, which are incorporated within privacy legislation.
Australia is already a mature credit market. It is moving from a long standing “negative” regime to a more (but not totally) comprehensive environment. In some ways this is more difficult than moving from a starting point of virtually nothing.
Resourcing within such niche areas is already proving challenging. Professionals are sought from overseas, and talent experienced in transitioning markets is particularly in demand. Combined with a multi-bureau market requiring similar resources, and predicted timelines around the reform, organisations will require a 12-month lead time.
On the flip side, as a consequence, companies should be apprehensive in solely seeking comfort in simply importing talent – it’s still a risk, and requires adaptating to the local environment. The commitment to resource these niche skills must be made now.
Melinda Fell is an executive recruitment consultant at Ethos Corporation. She specialises in risk management and compliance in the mid-senior market.
