What Businesses Should Know About Data Privacy

Data privacy is the process of safeguarding and giving individuals control over the collection, use, storage and sharing of their personal and sensitive data. It is a tool that does more than just keep information secure for businesses. It also needs to have clear policies, responsible data management, and adherence to relevant privacy laws. Customers, employees, and partners are providing businesses with a wealth of data via websites, applications, sales systems, and other means, making data privacy an essential element of winning their trust and mitigating business risk.

Why Data Privacy Matters For Businesses

Today data is integral to all business activities. Even in a small company, it is possible to gather names, email addresses, phone numbers, payment information, location data, or information about customer behavior. Employee and vendor information can also have sensitive information in them.

This info can be used to improve a business’s services and make decisions. It also brings responsibility, however.

Lack of control over personal information can have serious repercussions. Financial losses, legal issues, disruption of operations, and loss of customer confidence can result from a data breach or privacy violation.

Data protection is a concern as customers want to be aware of the treatment of their data. They might ask the following questions: 

• What information do they need to gather?
• What is the business’s purpose of using it?
• For how long will it be in storage?
• Who can access it?
• Is it disseminated among other companies?
• Are they allowed to ask to have it deleted? 

Clear answers to these questions are important for businesses to be ready for. Privacy is no longer a concern of big tech companies. It’s important for any organization that gathers personal information to be aware of their obligations.

The proper handling of data privacy can assist with customer relationship as well. A business that outlines its practices and takes responsibility for data will have an easier time getting people to feel comfortable sharing information. 

Understand the Difference Between Data Privacy And Data Security

Data privacy and data security are related, but not synonymous.

Data privacy is about the collection, use, sharing and management of personal data. Reflects the need for businesses to have a legitimate purpose for collecting certain information and that consumers are aware of the purpose for the information they are sharing.

Data security is about ensuring that data is not accessed, lost, misused, or stolen by others. It contains the technical and organizational measures employed to ensure that such data is kept safe.

A strong password, encryption, and access controls, for instance, may be used by a business. These are important security measures. But good security does not imply good privacy practices.

Now, picture a company storing more customer data than it’s actually required. If it is collected properly, it can still raise privacy issues if no clear purpose for collecting it exists.

There is a need for both privacy and security for businesses. One helps to ensure the appropriate handling of data. The other helps to defend that information.

The following questions should be used in a practical approach: 

• Is this information required?
• How we collect it is important – have we explained why?
• Is it we who are fairly and lawfully collecting it?
• Who can access it?
• Is it secure from unauthorized access?
• At what point is it to be “removed”?

These questions can guide businesses to developing good data practices from the outset. 

Know What Data Your Business Collects

Identification is one of the crucial steps in data privacy management is knowing what data does your business actually have.

There are many organizations that gather information in multiple systems and don’t have a full view of their information. It can be found in a customer relationship management system, an email system, an accounting software, a website analytics tool, a cloud storage account or an employee database.

First, make a basic list of all the information that your business gathers and handles.

Think about the following categories: 

• Customer details: Names, emails, phone numbers, purchases and account details.
• Employee information: Employee contact information, payroll data, job data and other employment data.
• Payment details: Card information, billing records and transaction data.
• The data that is collected on websites or applications: IP addresses, cookies, device details, and browsing habits.
• Business partner data: Data on contact information and contracts or finances. 

This data is then identified in terms of its origin, purpose for collection, storage and access.

This process can uncover redundant data collection and stale information. It can also assist companies recognize where sensitive information is being treated inadequately.

It’s not necessary to be overly complicated in a data mapping process for a smaller business. A clean spreadsheet or internal document will be helpful. The aim is to make an impact.

If you have no idea what you have, you can’t manage it. 

Follow Applicable Data Privacy Laws And Regulations

There are differences in privacy laws across country, state and industry. Businesses need to be aware of the rules governing their business, their customers and their markets.

Requirements can range from consent and privacy notices, access to the data and requests for its disclosure, reporting of data breaches, and the deletion of the data, among other things, depending on the location of the business and who the data belongs to.

There are also laws that provide certain rights for people regarding their personal data. For instance, individuals can request access to specific data concerning them or request that that data be corrected or removed in certain situations.

Specific obligations will vary based on applicable law. It is important to note that businesses should not assume that the privacy policy they have or practices they employ will satisfy all the requirements.

A sensible compliance process typically will be made up of: 

• Determining the jurisdictions in which the business conducts activities.
• Knowing where customers and user are.
• Reviewing industry-specific requirements.
• Current revision of privacy notices and in-house policies, where necessary.
• Defining a procedure to deal with requests regarding privacy.
• When the requirements are not clear, seeking legal or professional advice. 

Don’t think of compliance with privacy rules as a project that can be completed once and for all. The law also can change, and business practices can change, too.

A new mobile application, online advertising solution or software vendor can have an impact on the collection and sharing of personal data, for instance.

Periodic evaluations can aid a business recognize these changes prior to they get to be larger issues. 

Build Privacy Into Everyday Business Practices

The time to consider privacy matters is at the time of collecting new data, not when a problem arises.

This is sometimes referred to as the “privacy by design” approach. It’s thinking about privacy when developing products, services, marketing campaigns, websites, and in-house systems.

Ask some practical questions before beginning a new project.

What type of personal information will be gathered? Why is it needed? Can this be accomplished without disturbing the building or site? To whom will the information be made available? Will it be available to any outside provider?

These questions can assist teams in making proper decisions early on.

There should also be a limit to the amount of data collected by businesses for a clear purpose. Gathering up a lot of data just in case it will be beneficial later on can raise privacy and security issues.

Access is also a crucial issue. Users do not need access to all the types of information.

Implement proper access control to restrict access to information based on need of access for a role. Re-evaluate access upon job change or when a staff member leaves.

It’s also essential to train. Personal information is used routinely by employees in their work. They need to be taught some of the fundamentals about privacy and how to be aware of potential risks.

There are a number of useful training topics which might encompass: 

• Recognizing phishing and suspicious requests.
• Using strong passwords and secure authentication.
• Sharing information only with authorized people.
• Handling customer data carefully.
• Reporting lost devices or possible data incidents quickly.
• Following company rules for storing and deleting information.

Internal policies that can facilitate this effort can be instituted. But, policies are useless until they are understood by the employees and can be used in actual situations. 

Manage Third-Party And Data Sharing Risks

The majority of companies use external suppliers. It can be a cloud software, payment processor, marketing platform, customer service provider or any other provider.

Such relationships can enhance performance, but can also result in the sharing and/or handling of personal data.

Understanding the data handling practices of third parties is crucial for businesses.

When sharing personal information with a provider, think about: 

• What information will the provider have access to?
• What is the purpose of the provider having it?
• How will the provider ensure it is safe?
• Where will the information be stored and/or processed?
• Can the provider utilize the data for its own uses?
• What do you do with the data if the business connection is severed?
• Is there a clear commitment on privacy and security duties? 

An important reason why due diligence is needed is that a privacy issue with a third party could still impact your business and customers.

Where appropriate, the terms of the contract and service agreements should be clear. Companies should also regularly audit providers, particularly if they are processing sensitive or significant quantities of personal information.

The same goes for data sharing within the organisation. There should be no loose cross-over of information between teams unless there’s a clear business reason.

The more copies of sensitive material that are around, the more difficult it will be to control and protect. 

Prepare For Data Breaches And Privacy Incidents

Data incidents can happen to any business, regardless of how well they control their data. Information can be exposed as a result of a lost laptop, compromised account, misdirected email, software vulnerability or employee error.

Preparation counts!

All businesses should have a basic incident response plan that documents the actions taken in response to a possible privacy or security incident.

The plan should address key steps such as: 

• Identifying and containment of incident.
• Keeping up to date of relevant evidence and records.
• Identifying data that may be impacted.
• Estimating the range of possible affected populations.
• Investigating the cause.
• Making efforts to limit additional damages.
• Deciding if notification/reporting is required.
• Processes improving following the incident. 

Staff to be aware of who to speak to if suspecting issues. A delay can complicate the investigation and containment of an incident.

Businesses should not consider Incident Plans as a document that is created once and never used again. The process can be tested to identify gaps in communication and responsibilities.

Backups, authentication, software updates, access controls, and employee awareness can also help mitigate the risks and consequences of typical incidents.

The point is not to presume that there will be no problems! The aim is to minimize risk and act in a structured manner in the event that they do. 

Final Thoughts

Data privacy is a continual business obligation. The first step is to know the information your organisation gathers and why it gathers it. Then, there should be clear policies in place for the use of, protection of, sharing of, and deletion of personal information from that point onward.

The best way is typically the more straightforward one. Collect only the information you need. Make sure people are aware of its usage. Secure it with proper security measures. Limit access. Review third-party relationships. Keep informed about relevant privacy obligations.

Most importantly, ensure that privacy is part of the everyday decision making process.

By making data privacy a daily habit, companies can better navigate risk and customer trust. It can also provide a solid platform for expansion when new technologies, services and data practices are being adopted.

When personal data is being shared in so many systems throughout the business each day, it’s no longer just a compliance matter. It is a vital aspect in maintaining a reputable company.