07.03.2023 Executive Data Bytes - Business Struggles: Keeping Your Data Private

Executive Data Bytes

Tech analysis for the busy executive.

Welcome to another edition of Executive Data Bytes! In May of 2023, the Irish Data Protection Commission (DPC) imposed a fine on Meta to the tune of €1.2 billion for the transfer of personal data of European users to the United States without putting adequate measures in place to protect personal information from America Security Services; Yahoo Finance. This is still a hot topic today! In this issue we will look into data privacy and it's crucial role in your organization.

Focus piece: “Data Privacy Vs. Data Security: Four Implications For Business Leaders”

Executive Summary

In the process of understanding any concept or term, it’s important to clear away any preconceived notions. And in terms of data privacy, it’s important to distinguish between data privacy and data security, both of which may look alike but are quite different. This article by Forbes gives a clear understanding of the differences between these terms and also key takeaways for leaders looking to strike a healthy balance between the two.

Key Takeaways

• Data privacy is all about giving individual users autonomy of decision making on most or everything relating to their personal information. To put it more clearly, “data privacy is based upon the premise that personal identifiable information belongs to an individual and that they should be able to determine what, how, when and to whom their information is shared or communicated”. And the need for data privacy became more prominent as the distrust of users increased due to organizations capturing their data and selling it to third parties without the approval of the user.
• While data privacy is all about protecting the individual rights of users as it relates to users, data security is about the protection of overall data including the personal information of users. Taking a closer look at it, you would discover that data security comes before data privacy, as any one can get their hands on your data for free and are usually not bound by any law on how they get to use it unlike those that get the data sold to them. Hence both systems work in tandem to ensure that your organization is truly compliant as to how it handles its data.
• The question that might be asked at this point may be, how do you maximize the effects of your efforts as it pertains to these two aspects? For data privacy it’s important to know what data you are collecting, why, and how it’s being used and also continuously communicate to your users how their data is being utilized. On data security, it’s important to first build a consciousness of the importance of data security and then employ the necessary skills with the expert knowledge to effectively safeguard your data from unauthorized access.

Focus piece: “What data privacy has to do with business risk — and how to tackle both today”

Executive Summary

As a business you can be on both sides of data privacy. You might be the party whose data is being mishandled or you might be the party not handling user data as it should. The latter involves all types of risks that could deeply affect you as a business. In this article by SC Media, we will examine the risks associated with poor data privacy measures.

Key Takeaways

• Reputational Damage: Poor data privacy can damage the reputation of your organization. If data breaches or unauthorized access to sensitive information occur, it can erode trust and confidence placed in you by your customers. This loss of reputation can lead to customer churn, loss of business opportunities, and difficulty in attracting new customers or partners.
• Litigation and Lawsuits: Privacy violations can usually lead to legal action from affected individuals, customers, or stakeholders. Lawsuits related to these violations can result in costly legal battles, settlements, and damages awarded to affected parties. These financial liabilities can be substantial and have a long-lasting impact on your organization's financial health.
• Lost Competitive Advantage: It’s common knowledge to know that If your organization is known for poor data privacy practices, customers may choose to switch to competitors that prioritize and safeguard their data better. Losing customers and market share can result in financial losses and hinder your organization's growth and competitiveness. The summary of all these is to consistently prioritize the safety and usage of your customers' data.

Focus piece: “4 Simple Ways To Protect Your Business Data Privacy” 

Executive Summary

Your customers' data is very important. While you aim to make sure their data is safe, it is also crucial to ensure that the systems and infrastructure where there data is stored is well protected. If your objective is to protect your customers' data, protecting your systems would be an obvious first step in the realization of this goal. In this article by Mondo, we will explore steps that can be taken to protect your business' data privacy.

Key Takeaways

• Implement a cybersecurity patch plan: To protect your company, it is crucial to ensure that your tech professionals stay updated with the latest software and hardware patches. To safeguard your business data, it is essential to develop a patch plan and educate your employees about the importance of updates. Consider setting aside specific times every few months for company-wide patch downloads to avoid falling victim to cyberattacks. Prioritizing patch updates will help keep your company secure.
• Provide quarterly company-wide cybersecurity training: When recruiting cybersecurity talent for your tech business, prioritize candidates with a strong track record in data protection. Remember, technology and cyber threats evolve rapidly, so quarterly company-wide cybersecurity training is crucial. By keeping your tech specialists updated on offensive and defensive tactics, you reduce the risk of security mistakes. Also, train employees to handle data responsibly for the business and consumers while being proactive to defend against ongoing threats.
• Create a business data security response plan: Data breaches and hacks can severely impact your company's revenue, especially as the size of the company increases. To protect your business data effectively, creating a breach response plan is one of the most productive strategies to adopt. Consider your response plan as a critical component of your cybersecurity policy, ensuring your business can effectively handle a data breach. Such plans help secure stolen data, address vulnerabilities, and notify relevant individuals promptly.

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