All information or data that relates to an identifiable business or individual should be appropriately stored and remain protected at all times. From contact information to payment details to financial information, it is a no-brainer that company and personal data make the business world go round.
That said, pieces of information stored by companies, whether employee records, data collection, transactions, loyalty schemes, or customer details, need to be protected from theft and cybercriminals.
Doing so allows businesses to prevent said data from being misused for fraudulent activities such as identity theft and phishing scams.
In the end, everything we do online reveals a little bit of our existence in this world. We enter things such as our names, addresses, telephone numbers, and other personal information. As far as businesses go, they utilize this data to better their business and provide an excellent customer experience.
However, such an online presence comes with a price. In fact, companies that don’t opt for data protection put themselves at risk of various privacy issues, leading to cybercrime and much more.
With that in mind, let us look at a few reasons why skipping on data protection will land you in trouble.
It leads to breaches that hurt your business.
A privacy principle and requirement in all data protection involves strong security safeguards against business and personal data theft. Companies that implement such privacy and security controls experience fewer security incidents that lead to privacy breaches.
After all, a decrease in the number of privacy and security breaches means that your customers won’t lose trust in your business, leading to low customers turnover. Furthermore, it will allow you to reduce the chances of dealing with civil suits as an aftereffect of a data breach.
Hence, this answers why is cybersecurity important and what it means to a business trying to succeed in today’s digital world.
It leads to reduced brand value.
According to a Forbes report, around 46 percent of companies damaged their brand values and reputations due to a privacy and data breach.
However, companies that go for data and privacy protection demonstrate that they value their customers’ data and information and support this goal with consistent and transparent privacy practices.
Doing so will allow your business, or any other company for that matter, to maintain and build their brand value and reputation tenfold.
It worsens your ethics policies.
Many businesses have incorporated ethics policies or a code of ethics into their business practices to promote fair business activities. However, those that haven’t need to realize that ethical practices are vital to their long-term survival.
These ethics involve handling confidential data and information responsibly and using it in business activities in a way that doesn’t harm anyone.
Without data protection laws, unethical businesses will misuse this data for their company’s benefit. Not to mention, without the presence of ethical practices and data protection, data will be up for grabs, and cybercriminals or thieves will use it to commit identity fraud or resort to phishing tactics.
It decreases customer confidence.
Data protection will allow you to put your customers back in the driving seat, providing them with control over how your business stored their data and information. After all, your customers are now more aware of their data’s value to various companies.
However, new data protection legislation states that businesses must perform audits on their data processing activities and remain compliant with protection principles that protect customer data.
That said, by incorporating data protection into your business, you will increase customers’ trust and confidence while reducing organizational risks. In the end, such transparency will also allow you to develop more meaningful relationships with your customers.
Also read: Seven reasons skipping on data protection
It worsens management.
There is no doubt that data is a vital asset for any business. Therefore, you must demonstrate compliance and keep it protected from thefts and frauds at all times. As mentioned above, performing a data audit will allow you to evaluate your business’s data management processes to identify whether changes are needed or not.
Moreover, it will also let you know how your company stores data, its storage length, access rights, usage, and how it’s shared. Doing so will enable you to determine and rid your business of data and information that no longer holds value, reducing the risk of damage that might occur if a data breach happens.
Reduction in cybersecurity efforts.
Nowadays, cybersecurity breaches are a common issue that most businesses face worldwide. In fact, according to Microsoft, the total cost of dealing with cybercrime-related damages is around 500 billion dollars, with an average price of 3.8 million dollars per business.
However, as the sophistication and nature of the cyber attacks grow, data protection allows you to re-evaluate your cyber security strategies and techniques and incorporate changes to protect your employees, customers, and business data from theft and cybercriminals.
Furthermore,GDPR also ensures that only a handful of individuals within your business will be able to access business-critical data and information, decreasing the risk of data falling into cybercriminals’ hands.
In addition, the GSPR also states that companies inform the relevant authorities of any data and information breaches within seventy-two hours of detection.
It slows down positive organizational change.
Not opting for data protection will worsen your business’s ability to demonstrate excellent levels of responsibility, accountability, and transparency in how your company uses and stores data.
As the level of concern and awareness around information and data security has increased, customers know that their personal information can be misused. So, businesses need to demonstrate that they are doing what’s necessary to employ good information governance and data protection strategies.
As a business owner, if you can display to your potential and existing customers that you take data protection seriously, it will create better opportunities for having a competitive edge over your competition.
Employing good data protection strategies will allow you to transform your data organization practices. Doing so will bring forth tons of opportunities that will benefit your business and strengthen its performance in today’s challenging marketplace.
While complying with the latest data protection laws might be challenging, time-consuming, and expensive for some businesses, it will undoubtedly provide them with tons of benefits. But, of course, we aren’t only talking about reduced financial risks or a clear conscience here.
The reasons listed above will allow you to understand better why your data protection should be an ever-present part of your business strategy. So, don’t wait and ensure that your business is complying with GDPR laws today.