The DSA: Where Purpose Meets Permission

What is a Data Sharing Agreement (DSA)?

In today’s data-driven world, sharing information isn’t just a convenience — it’s a necessity. However, sharing data without clear rules and boundaries can lead to chaos, compliance failures, and reputational damage. Enter the Data Sharing Agreement (DSA): a formal contract between a data owner and a data user that defines the purpose, scope, and conditions under which data can be accessed and used.

More than just a legal document, a DSA serves as a foundational governance tool, ensuring that data is shared responsibly, securely, and in compliance with organizational policies and external regulations. But what exactly makes a DSA so indispensable?

Why Your Business Needs a DSA?

A Data Sharing Agreement is essential for aligning data sharing with business needs while mitigating risks. Here’s why every organization should prioritize DSAs:

1. Purpose Alignment

DSAs link data access directly to a specific use case or business goal. Once the purpose of the data sharing is fulfilled, the agreement is terminated, ensuring that data is not used unnecessarily or indefinitely.

2. Governance and Compliance

With increasing regulatory scrutiny, DSAs are critical for adhering to legal and regulatory frameworks such as GDPR, HIPAA, BCBS239, ESG, and Basel IV. These agreements provide the structure needed to ensure compliance and accountability.

3. Operational Control

DSAs establish clear rules for:

• Who can access the data
• What specific data can be accessed
• How long the data can be used
• Through which systems data is accessed
• Under what conditions data may be shared

By defining these parameters, DSAs help maintain operational control and prevent unauthorized or inadvertent misuse of data.

The Benefits of a DSA

A well-crafted DSA isn’t just a regulatory safeguard — it also brings significant operational and strategic benefits to organizations:

1. Transparency

DSAs clarify responsibilities and expectations for both data providers and data users, fostering trust and collaboration.

2. Security

By enforcing access controls, encryption protocols, and retention policies, DSAs ensure that sensitive data remains protected at all times.

3. Auditability

DSAs make it easier to trace how and where data is used, aiding both internal audits and external regulatory reviews.

4. Scalability

As organizations grow, DSAs facilitate structured data-sharing processes that can scale seamlessly through platforms.

The Risks of Skipping a DSA

Failing to implement a DSA can lead to a host of issues, including:

1. Compliance Breach

Without a DSA, unauthorized data access can violate privacy laws and internal policies, leading to hefty fines and reputational harm. For instance, the 2018 Facebook-Cambridge Analytica scandal underscored the dangers of unregulated data sharing.

2. Operational Risk

Untracked data usage increases the risk of data leaks, misuse, or corruption. These risks are particularly critical for organizations handling sensitive customer or financial data.

3. Loss of Trust

Stakeholders, including customers, regulators, and partners, may lose confidence in your organization’s data governance. This can undermine collaboration, innovation, and long-term business success.

Data Access vs Data Sharing: Understanding the Difference

Data access and data sharing are often used interchangeably, but they are fundamentally different concepts. Let’s break it down:

Data Access

Data access refers to permissions granted within a system. It answers questions like:

• Who can log in to the system?
• What roles can view, edit, or delete specific data?
• Which fields are masked, and which are visible?

Think of data access as having a key to a room. You can enter, sit at the table, and look around — but you’re still inside the house. Access is typically managed through systems like Identity and Access Management (IAM), LDAP, or Active Directory roles.

Data Sharing

Data sharing involves transferring information across organizational or system boundaries. It requires attention to trust, obligations, and accountability. Beyond access rights, data sharing governs:

• What recipients can do with the data
• Under which conditions the data may be used
• Protections required to safeguard the data

Using the same analogy, data sharing is like entering a building with a pass and authorization. Once inside, you may access multiple rooms, but only under strict conditions.

The One-Line Distinction

Access = Rights (to view or use data within boundaries)

Sharing = Transfer (data moves beyond its origin with obligations attached)

The Importance of Business Justification

Every Data Sharing Agreement must be anchored in a business justification. This justification defines:

• Why data needs to leave its original location
• Where the data will go
• How long the data will be required

For example, a financial institution may share customer data with a third-party risk analysis vendor for a limited time to assess creditworthiness. Once the analysis is complete, the DSA should be revoked, as the original purpose for sharing the data no longer exists.

Why DSAs Should Have an Expiration Date

A Data Sharing Agreement should never be perpetual. Here’s why periodic reviews and revocations are critical:

• Business Justification Expiry: Once the original reason for sharing data is no longer valid, the DSA should be revoked.
• Consent Withdrawal: If a data owner withdraws consent, the agreement must be terminated immediately.
• Awareness and Governance: Regularly reviewing DSAs ensures that data owners and users remain aware of their responsibilities, fostering a culture of accountability.

Conclusion: A Strategic Safeguard for Data Sharing

In an age of increasing data complexity, a well-drafted DSA acts as both a shield and a compass. It ensures that data is shared with purpose, protected with rigor, and governed with accountability. By aligning data sharing with business justifications and periodically reviewing agreements, organizations can unlock the full potential of their data without compromising on security or compliance.

At its core, a DSA empowers data owners to stay in control of their information. If the conditions are met, data moves. If not, data stays — simple, effective, and essential for success in today’s data-driven landscape.

Start drafting your DSA today to ensure trust, transparency, and secure data sharing!