Businesses need to use data strategically as the cornerstone of their entire business model, making it their most valuable asset.
Data is one of a company’s most valuable assets in the business world today. Customer data drives insights, the creation of products and services, personalized interactions, and effective go-to-market plans. As a crucial part of their business models, many companies routinely share their clients’ data with their partners. The storage, sharing and disclosure practices for consumer data in the modern digital economy are governed by privacy laws like the GDPR (the European version) and the California Consumer Privacy Act (CCPA), which are upending these business models and the way data value is transferred.
Executives place a high priority on safeguarding data.
The problem is becoming increasingly important as the amount and variety of data that can be gathered, stored, and analyzed has multiplied over the past few years.
There are frequently fewer protections in place, though, regarding how individuals use and handle their own data and that of others.
Why the need for data security is more significant than ever
Since long before the digital era, businesses and their executives have been required by law and for the sake of business survival to protect specific information and data points. For instance, banks have long protected the account information of their clients. However, computers and other digital systems have worsened the problem by producing more data, more types of data, and data with various monetary values.
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Enterprise leaders’ perspectives on protecting the data they gather, store, and use have changed. They typically acknowledge that some information, like a person’s name, is public knowledge and does not need to be protected. They categorize other data and combinations with varying degrees of sensitivity and value, such as personally identifiable information, as non-public. As a result, different levels of protection and regulatory requirements are needed for this data type.
According to Brian Gin, Chief Privacy Officer, Trellix, “There is no question that privacy is important, and Data Privacy Week is a great opportunity to discuss how important it is for all of us to protect it. As individuals and organizations, we occasionally think that protecting privacy is someone else’s responsibility. When in fact, each of us is important. Nearly everyone at work which has access to personal information or contributes to creating a product that does is accountable for keeping it secure.”
Brian also adds, “I still believe that the privacy programs that empower and encourage all employees to take ownership of data protection are the most effective and reliable. People from all functions—marketing, sales, engineering, etc.—understand their fundamental privacy obligations and believe it is their responsibility to promote data’s legal and moral use. Corporate privacy programs can succeed with this solid foundation and the conviction that privacy is a fundamental human right that benefits us all. This must serve as our guiding principle.”
Data Privacy vs. Data Security: What does it mean for business leaders
All businesses place a high priority on data security in addition to data privacy. Failure in either of these areas could incur increased costs; in 2022, a data breach will cost an average of USD 4.35 million. Beyond the monetary cost, the long-term adverse effects of a data privacy breach or non-compliance on brand, reputation, and trust erosion are even worse.
The risk of compromising data privacy and security increases with the sharing of first-party data. Therefore, business leaders have a strategic duty to comprehend the distinction between privacy and security, the shifting business environment, its effects on business models, and how emerging technologies can assist in meeting the new regulatory requirements and customer expectations.
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here are some significant steps business leaders can take:
Maintain data hygiene
It is crucial to know what information is being gathered, why, and how it is being used and shared. Stop collecting and don’t keep specific data if it isn’t required. Periodic review and good data hygiene are essential. To make sure the company complies, CIOs can carry out an internal review and audit of the privacy laws that are unique to the industry as part of that process.
Review business partners
Organizations look at how teams share data with their business partners. Emerging technologies allow companies to collect insights without sending personally identifiable information. These options offer fresh ways to gather and anonymize data without moving it, ranging from straightforward mobile apps to sophisticated data science marketplaces.
Reiterate the customers
End users anticipate being informed about how their data is used. Reiterating how knowing a customer’s preferences and behaviors benefits a brand can strengthen its value proposition and increase customer loyalty.
Using proper data security tools
Businesses can use various data security tools to find security flaws or breaches. IT staff members can monitor and find vulnerabilities with the aid of a new technology sector in cybersecurity called Identity Threat Detection and Response (ITDR). These tools can aid in developing a culture consistent with the company’svalue proposition and business model, especially when combined with good internal data security training.
Data drives today’s digital economy, and privacy and security regulations establish the parameters for business models. Effective business leaders monitor their own data strategies, practices, and how these industries are changing for themselves and their ecosystems to be successful. Knowing about new tools and cutting-edge technology is crucial because they might be able to address some of these data challenges and open up ground-breaking possibilities for new revenue streams or business models.
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