Business

Growing concerns over data privacy: Here’s how every new tech business should prepare itself

If you are a company that was forced to shift its business online due to the ongoing pandemic or a new one trying to create a position in this market and you are looking for data privacy management, you have come to the right place. Moving to a digital platform may have become vital for a business to continue, but it also introduces new risks. 

Data Privacy is how data should be properly handled and shared with other parties apart from oneself. Additionally, data privacy also requires following the data laws which are implemented within a country. Giving individuals control over the data, empowering them to know how their data is being used, by whom, and why is the primary motive of the data protection laws. 

We can expect that the risks of managing customer data are familiar to businesses. Major companies have been the victim of data breaches and poor data mismanagement, which have disrupted not only the privacy of consumers but also made the risk of cyber threat and security evident.

In this era where consumers are becoming more and more aware of their rights about privacy, it has also become imperative for companies to learn how to process personal data while protecting the privacy preferences of individuals. Implementing the following simple steps can minimize the risk of a privacy breach – 

1) Be aware of how the customer data is being used 

Companies might often find it lucrative to sign deals and contracts with parties who provide solutions to a number of digital transformation challenges, but companies must review Data Processing Agreements (DPA). Ensuring they are privacy compliant and that the privacy policies are in alignment with the business’s stated data policies should be the key focus when reviewing vendor DPAs. Also, there should be an assurance that vendors won’t subcontract to another processor unless explicitly instructed by the business to do so. 

2)  Run risk assessment plans

Implementing basic risk assessments for data activities forces businesses to recheck their decisions before making some irreversible mistakes related to data storage, subcontracting, etc.

3) Your Privacy Policies Must Be Transparent And Precise.

The company’s goal is to make its policy accessible to all customers — not just those fluent in legalese. The priority should be to help the increasingly privacy-savvy customers understand the company’s policy and to build their trust about it.

4) Stay informed of industry changes

With numerous new regulations regarding data privacy coming into being, it is easy for a budding company to lose track of them, and thus, they may fail to adjust their operations which in turn might violate privacy policies. Thus, waiting to change may prove costly, which a startup may not be able to handle.

5. Importance of data audits

It is imperative to know and have an idea about the source of data and the people responsible for handling it. You must have platform-specific safeguards in place to protect these invaluable data.

6. Delete unnecessary customer and employee data.

Minimizing the data that is stored also minimizes the potential areas cybercriminals can attack and exploit. Deleting old data gives the employees a better sense of what information they need most and should regularly use.

7. Keep certifications and technology up-to-date

There has been an increase in the implementation of regulations to keep up with the changing world due to technological advancements. Keeping the software up to date and leaving a place for further improvements in the future reduces the risks by tenfold.

The customers prioritize a reassurance from the organizations or systems that they provide their data to. The responsibility is on companies to provide those things, otherwise, the outcome may be costly. 

However, data privacy and managing the same should not look like a very difficult task owing to several software that can ensure the same. Compliance management software that helps an organization comply with legal requirements and minimize harm to consumers due to violations of law may prove to be a lifesaver in this case. 

Conclusion

You may have an urge to treat privacy concerns as a secondary issue but one mistake can increase the risk of monetary fines, class-action lawsuits, and PR headaches.

The consequences of violating the privacy of consumers might prove to be disastrous financially while also damaging reputation which most startups new to the field and operating on limited budgets may not be able to survive.