All businesses have and use a lot of data. Some of which are personnel files, customer data, product information, process and procedures, sales performance, and financial records. These data are vital for any organization as it helps management with their strategies and decisions. Data is also needed for any company’s operations. As data created and stored continues to grow, more data protection strategies are needed. And because data ensures business continuity, protecting it should be a top priority.
Data protection is a process wherein you ensure that important information is safeguarded from corruption, compromise, or loss. This includes guarding the availability of the data for its rightful users, ensuring the integrity of data by keeping it correct and up-to-date, and keeping the privacy of the data only to authorized people.
The following are the eight core principles of data protection.
- Openness: Organizations must be transparent about their practices in handling personal data..
- Collection limitation: Collection of personal data must be limited only to what is needed, lawful, and with full knowledge and consent from the data subject.
- Purpose specification: At the time of collection, the purpose of collection and disclosure must be reflected.
- Use limitation: Use or disclosure must be regulated only to specific purposes or closely related purposes.
- Security: Personal data must be subject to appropriate security measures and guidelines.
- Data quality: Personal data must be relevant, correct, and updated.
- Access and correction: Data subjects must-have the capability and appropriate rights to access and correct their data.
- Accountability: Data controllers must take responsibility for ensuring data protection compliance.
So what are the benefits of practicing data protection?
It helps prevent loss of revenue and profit
A lot of laws and regulations are in place all over the world on data protection. Organizations that practice good data protection prevent facing huge fines and penalties. With the pandemic now, companies would like to avoid big spending, especially if their business is greatly affected because of the virus. Business revenues and cash flow are allotted to things that matter rather than paying for a penalty for non-compliance.
It helps reduces the chances that the organization suffers breaches
Organizations that implement policies and controls reduce the chances of a security incident that may result in privacy breaches. An unintentional leak of data can hurt not just an individual, but another business as well. This may result in complaints, civil suits, and loss of trust from partners and customers.
It maintains and improves brand value
Most individuals nowadays are conscious of their privacy. They are careful in sharing information about themselves. They also feel confident when they know that the recipient of their data will deal with it properly and will try their best to keep the information secured.
With that, organizations should make it explicitly clear that they care about their customer’s privacy. Let your customers feel that they are protected. This will build a better emotional connection with a brand and customer loyalty, which will improve brand value.
It supports an organization’s code of ethics and values
Most organizations have established a code of ethics that serves as a guiding principle for employees. This code of ethics is anchored on the company’s vision, mission, and values. With that, data protection supports the organization’s goal of following good business ethics because it gives everyone a mindset that ethics should be prioritized over selfish gains. It means all should handle information responsibly, and not use it in activities that will harm the clients and the company.
It gives a competitive advantage over other business
As per Pew survey, it was important to 93% of Americans to have control over who is allowed to get information about them, and 90% said that they want to control the specific types of information that are being collected about them.
This survey result seems to be aligned worldwide. People want to have control over their information and how it will be used.
Since customers become loyal to a brand that protects their information and data, an organization gains a competitive advantage over its competitors. In this time wherein is business is tough, having a lot of loyal customers will ensure that your business will continue to grow and thrive.
It drives productivity
Internally, data protection practices can also drive employees’ productivity. Loss of important data lowers productivity as employees will need to deal with how they can restore the information, not to mention handle customer complaints instead of focusing on their business-as-usual activities.
Another good example of how data protection increased productivity is what happened because of the pandemic. Last year, most companies were forced to offer a work-from-home set up to keep their people safe. Organizations with good data protection strategies in place did not have a hard time adjusting since data can be safely accessed by authorized individuals. Even in the comforts of their home, employees can get and use the data needed for their tasks.
Data protection is beneficial to any business- from meeting customer’s expectations to achieving competitive advantages, better customer experience, and greater investor appeal and brand. This is truly something that should be taken seriously and prioritized. Elizabeth Denham mentioned that we’re all going to have to change how we think about data protection.
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