Top 5 things you must know about Data Privacy

What is the significance of data privacy?

Data protection laws around the world aim to restore individuals’ control over data, empowering them to know how, by whom, and why their data is being used and giving them control over how their personal data is processed and used.

That is why organizations must learn how to process personal data while respecting individuals’ privacy preferences. This is what people expect from businesses. This is their interpretation of privacy.

From a business standpoint, protecting personal data and emphasizing data privacy can have a variety of positive effects on the organization. From meeting customer expectations to gaining a competitive advantage in the form of higher data quality, improved customer experience, and increased investor appeal and brand.

5 things to know about Data Privacy

1. Data Security is not the same as Data Privacy:

Data Privacy focuses on individual rights, the purpose of data collection and processing, privacy preferences, and how organizations govern data subjects’ data. It focuses on collecting, processing, sharing, archiving, and deleting data per the law.

Whereas, Data security refers to a set of standards and various safeguards and measures that an organization employs to prevent any third party from gaining unauthorized access to digital data and any intentional or unintentional alteration, deletion, or disclosure of data. It focuses on defending data against malicious attacks and preventing the exploitation of stolen data (data breach or cyber-attack). It includes things like access control, encryption, and network security.

Data Privacy and Data Security are required to protect data and comply with data protection laws adequately. Even though these two terms may appear to be synonymous, the distinctions between them become more apparent once you begin to dissect them.

2. The significance of data privacy and transparency:

In today’s data economy, the actual value of a company is found in the data collected from its customers. This means that data is a valuable asset that should be safeguarded and preserved.

Companies frequently forget that the personal data of individuals processed by them is only borrowed. Individuals can exercise their rights under privacy laws, such as the right to be forgotten, and in certain circumstances, they can reclaim ownership of their data.

Companies must demonstrate transparency by openly communicating what data they collect, for what purposes, which a data processor is, and so on to keep the data and maintain trust.

3. Privacy is the right to be left alone:

Well, privacy is your right to be alone, and while it may not be challenged right now, it should be protected. You should exercise your right to privacy whenever and however you want. This has been recognized by governments worldwide, resulting in a slew of data protection laws.

4. Noncompliance’s Consequences:

As technology advances, there are an increasing number of intrusive ways to collect and process personal information. Companies will soon find it extremely risky to navigate data privacy laws unprepared. Companies will face fines and lawsuits, and their reputation and customer loyalty will be tested.

In 2019, Facebook set aside $3 billion to $5 billion for ongoing investigations into multiple data breaches and data mishandling (a practice we strongly discourage).

Taking proactive steps and measures, such as implementing appropriate data safeguards or data protection software, will help you guide your privacy program and automate processes. Although this may necessitate an initial investment of resources and money, a potential data breach may cost your company far more than you realize.

According to the Ponemon Institute’s Cost of a Data Breach Report 2020, the average total cost of a data breach is USD 3.86 million.

This can be a valid argument for organizations to begin investing in their privacy program and compliance because they will be held accountable for the consequences and costs of the breach.

5. Globally, privacy regulations are becoming increasingly stringent:

Organizations should consider compliance regulations when developing their business plans, strategies, and marketing activities. Not only because of the fines but also because people will expect it.

There are numerous advantages to complying with data protection laws, ranging from competitive advantage to digitalization. The percentage of organizations reporting significant business benefits from privacy has risen. The gifts range from operational efficiency to agility, innovation, investor appeal, and brand value.

Ref:: 5 things you need to know about Data Privacy – Data Privacy Manager