Introduction
Data Privacy & Protection has become a topmost priority to businesses, irrespective of the industry or geography that it operates in. Data now plays a crucial role in every business since digitalisation has become widespread. Companies have been getting access to personal and sensitive data of individuals and recent instances of data breaches affecting prominent brands such as Equifax, Marriott, and Facebook have compelled companies to reassess and redefine what holds significance in the present-day landscape. With the fast paced growth in technology, it has become equally important to understand that such information should be protected at all costs and essential measures should be taken by entities having access to such data.
It has become all the more important for Indian companies to realise that the information they hold is crucial and must act in a responsible and an accountable manner. While the significance of safeguarding vital information has become increasingly evident, there is still a persistent failure to prioritise the protection of such information at a national level. In this article, we shall discuss the measures and the kinds of Data Protection training companies can give their employees in order to maintain confidentiality and prevent data breaches.
Data breach: A bane for a company?
Data breach could be detrimental to the interests of any business and may result in serious damage to its market standing. A company could suffer financial loss, reputational damage, legal and regulatory repercussions, and business disruption. Companies frequently suffer large financial losses as a result of data breaches. Direct and indirect expenses, such as clientele loss, a decline in sales, and higher insurance premiums, might affect them. Business operations might be affected by data breaches. Companies may need to commit significant resources to dealing with the breach, looking into the occurrence and putting the appropriate security measures in place, which could cause the firm to be disrupted. Businesses that operate internationally may have customers in many different nations and may need to follow various laws. Some companies may view the price of such a procedure as an existential risk, in addition to potential fines, damages compensation, and any consequent lawsuits.
The Equifax data breach in 2017 could be an example of a data breach that affected over 145 million individuals, leading to the company compensating affected U.S. consumers with a total amount exceeding $700 million. In the UK, approximately 15 million customers were impacted by the breach, resulting in separate lawsuits filed in several courts and each lawsuit seeks damages amounting to £100 million.
What should companies do to safeguard data and privacy?
Utilising data minimisation techniques, businesses should only acquire required and pertinent information. Additionally, they should ensure that data is only gathered, used, and processed in a way that complies with the intended uses. Any sensible privacy and data protection strategy must include the salient and essential component of data deletion. Companies should promptly remove any data that is no longer necessary for them and should regularly delete specific data. Here are a few methods by which companies can safeguard and protect their data.
Categorising the data in a systematic way as per the working model of the business and the sensitivity of the data can be a key factor in data protection. Companies need a systematic approach for efficient data protection and security. Companies must carefully manage administrative rights and restrict access to data, whether it is permitted internally or to third parties. Implementing a strict policy that promptly removes access credentials when an employee is terminated is a crucial component of human resources practices. Building trust and confidence among consumers and the general public about the use and security of personal data depends heavily on transparency. Businesses benefit from increased customer knowledge and confidence when they are open about how data is used and protected.
GDPR compliance requires companies to follow a set of principles for managing sensitive information, thereby enhancing data protection. Effective communication and training strategies can assist employees in understanding and adhering to GDPR guidelines, reducing the risk of breaches. It is mandatory for companies to provide training to their staff on the proper handling of personal data. The purpose of this training is to ensure that employees are well informed about the sensitive information that they handle on a daily basis and the importance of data protection. Since departments and jobs have different levels of knowledge and responsibility, a "one-size-fits-all" approach to data protection training is ineffective. By providing targeted education, companies can empower their employees to understand the importance of data protection and accountability.
Despite effective security measures, data breaches can still occur, therefore it's important not to try to hide them or place the responsibility elsewhere. Recognizing that mistakes can happen, it is crucial to immediately inform your supervisors or the appropriate authorities about the breach. Companies can improve their data protection procedures by learning from these errors. To minimise the effects of breaches and guarantee data protection, it is essential to maintain accountability, openness, and an active approach to data protection.
Conclusion
In conclusion, in today's digital environment, data privacy and protection have become crucial concerns for businesses. Programs for training employees that go through data privacy principles and inform employees of their duties are essential. Companies must also create a culture of accountability, where violations are swiftly reported and remedies are carried out. To remain ahead of potential dangers, it's essential to do regular risk assessments, privacy policy updates, and monitoring. In addition to reducing risks and avoiding data breaches, businesses that prioritise data privacy and protection also develop trusting relationships with their clients and consumers that are built on solid data governance and ethical conduct.
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