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Why is data protection important for a company?
In the digital age, the amount of data that organizations and companies work with every day is growing exponentially. The more complex and comprehensive the data processing, the higher the risk of misuse and data loss. In addition, consumers are becoming increasingly aware of their rights, which is why data protection is now a topic that should not be neglected. Companies in particular should take data protection seriously.
That’s why data protection is important for companies:
- Reputation, image, trust
- Today’s customers want to know what happens to their personal data and where it is stored. A company that neglects data protection risks its reputation and image. Customers lose confidence in the company and turn to a competitor that complies with data protection guidelines.
- Moral responsibility is joined by the legal responsibility to protect personally identifiable information (PII). Laws such as the GDPR, CCPA, and HIPAA require companies to take certain steps to protect data. Violations result in heavy fines or even imprisonment.
- Competitive advantage
- The flip side of the first point: companies that prioritize data protection can build a positive image, differentiate themselves from competitors, and attract new customers who care about data protection.
- Protection against data leaks
- When personal data falls into the wrong hands, it can lead to identity theft, financial loss and other fraud. By taking appropriate security precautions, you can prevent data leaks and protect both your customers from misuse and yourself from financial loss.
- Save cash
- Do you think steps to protect sensitive data are costly? That’s nothing compared to the horrendous costs that arise when guidelines are disregarded. Penalties have already been mentioned. Add to that the potential expense of recovering stolen data and the marketing campaigns you’ll need to burnish your reputation.
- Retain and attract employees
- Companies that prioritize data protection can increase employee satisfaction. Employees feel more comfortable working for a company that considers data privacy important and puts it into practice. Satisfied employees like to stay with a company for the long term. When it’s widely known that you adequately protect customer and employee data, you quickly attract the right talent to help your company grow.
What does data protection look like in companies?
If you handle consumer data with high integrity and security at your company, these tasks fall within your space:
- Obtain consent for tracking and data collection
- Establish privacy policies
- Provide transparency
- Establish mechanisms for data deletion requests
- Implement security controls
To ensure you meet the importance of data protection in your business, it pays to seek expert outside advice. Actonic’s data protection compliance service will be happy to assist you.