DATA PRIVACY & DATA PROTECTION & DATA SECURITY
Data Privacy, Data Protection, and Data Security
There is no need to emphasize the importance of data as every business has a lot of data to be handled and cared for. ‘Data’ and “Privacy” are twin brothers. We can say privacy follows data or data is accompanied by privacy.
It is observed that in the digitized economy, the prevailing trend is - “the more the data, the richer”. Of course no doubt, ‘data’ being a bunch of information about somebody or something, has value and has the potential for diversified uses. Therefore its is only natural to collect as much information as possible.
Similar to data and privacy; data and trust do have symbiotic relation. While the new engine oil to run business is “data”; ‘trust’ is the currency you need to encash upon. In other words, the data you hold, the privacy you provide and the trust you create are interconnected. A weak link in handling the data you hold or the privacy framework you adapt can tarnish your image, reputation and wipe out the trust you had built up so far.
To make ‘trust’, the currency of your business, first you need to treat the data you collect, store and use as a ‘business liability’. Only then, the ‘data’ you possess turns into your ‘business asset’, and you start building ‘trust’.
Yes, the data you hold remains a liability till you start legally protecting the data you own and keep its privacy and start treating it as the most critical asset. On the other hand if you view and handle the data you possess as a commodity to be exploited as you wish, you are accelerating to deep legal issues and disaster.
Biz Legal Guard helps you in legally wrapping your data with suitable data protection and privacy rules and regulations so that the data you hold becomes the incredibly valuable business asset you possess.
The term “Data Privacy”, is the combination of the words ‘data’ and ‘privacy’. Similarly, ‘Data Security’ and ‘Data Protection it can be noticed that the word ‘data’ is the common denominator. Let’s understand what differentiates these three terms.
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Data Protection
Data Protection is the process of safeguarding important information stored in digital form in your system and server from getting manipulated, compromised or lost.
Data Privacy
Data Privacy refers to an individual’s right to have the privacy of his personal sensitive information.
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Data Security
Data Security refers to the defense mechanisms used to safeguard against the ‘data’ being accessed or used maliciously or unauthorized either internally or by external forces.
Measures to legally secure the ‘data’ vary from one business to the next and will depend on the amount and types of ‘data’ being collected and stored.
Protecting and securing the ‘data’ has technical and legal perspectives.
Access control and user authentication terms, data encryption, etc., are technology measures.
Data processing agreements, data loss prevention contracts, non-disclosure agreements, availing Cyber Liability Insurance, etc., are legal precautionary measures to protect the “data” you hold.
Globally, governments are legislating new rules and regulations empowering the rights of ‘Data Subjects’. As a business owner, the time has come for you to buckle up and have a re-look and strategies the way you handle and protect the data you collect, store and use to avoid legal consequences.
From the legal perspective, ‘Data Privacy’ is all about the policies, frameworks, and process steps you implement within the organization which determines how much (data) is enough, the purpose of collecting the data, how it is stored, shared, made use of and disposed of.
When it comes to Data Privacy, the focus has to be on compliance with applicable privacy laws globally. The data management and data protection agreements, the privacy policies and agreements are unavoidable legal documents if your business has something to do with the internet, have data to handle with or does business over the internet.
Irrespective of the size/status/or type of business or industry you operate, you have to have the legal protection of the ‘data’ you possess.
To avoid costly mistakes leading to penalties, fines, and court cases you need to have:
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Robust data protection policies and agreements in place.
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Regular updating of these policies
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Train your employees in handling third party sensitive information.
Generally, depending on the nature of your business or the industry you belong to, the data you collect and possess can fall into:
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Personal Health Information
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Personal Financial Information
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Personally Identifiable Information or
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Academic Records
Keeping the privacy of third party sensitive information is crucial. Simply because of the reason that the information that is handed over to you is to be kept as “private information” as it reveals the identity or personal characteristics of an individual,
And as Custodian of these sensitive third party personal information, a data theft or data leak happens and this data gets into the wrong hands, you will be held responsible leading to legal and financial consequences and loss which is quite heavier than you presume.
Few of the legal consequences and financial implications once a ‘data breach’ happens to your business include:
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Notifying all the stakeholders {notification charges);
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Appointing forensic agencies to find out the cause of data theft;
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Appointing credit monitoring service to watch the sensitive information you possessed being used elsewhere by miscreants;
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Government penalties and fines;
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Lawsuits and Compensation;
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Business interruption;
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Loss of reputation.
