Data is a vital asset that powers every aspect of business. Safeguarding data privacy enhances its integrity and reliability. Data security protects against unauthorized access to databases and computer systems, data breaches, and any form of data corruption during a cyberattack. Meanwhile, data backup is a preventive measure that creates an exact copy of your data to restore in the event of a data loss incident, such as a system crash or natural disaster.
Data privacy refers to an individual’s right to control how their personal information is collected, stored and used by organizations in the data economy. This concept has been elevated to the status of a fundamental human right by many countries and even incorporated into their constitutions. It is the underlying principle behind stringent data protection laws like the EU’s General Data Protection Regulation (GDPR), California’s Consumer Privacy Act (CCPA) and industry regulations like the Health Insurance Portability and Accountability Act (HIPAA).
Businesses face substantial financial penalties for non-compliance with national and international data privacy rules. They also risk losing trust with their consumers, who have become increasingly apprehensive about sharing their personal information with companies that fail to safeguard their privacy.
Companies can demonstrate their commitment to data privacy by collecting only the data that is essential for their business functions and deleting any unused data. This practice reduces potential vulnerabilities, streamlines data management processes and reduces data storage costs. It also demonstrates an ethical use of customer information and strengthens their competitive advantage in the eyes of consumers.