When’s the last time you updated your data protection plan?

Data protection is the act of creating processes, policies, and infrastructure to protect critical organizational information from loss, compromise, or corruption. Protecting data is key to business operations because the number and intensity of cyberattacks have increased rapidly in the last few years. Forbes reports that malware attacks increased by 358% in 2020 alone. At the same time, the federal and state governments have introduced several regulations to enhance data protection.

Data protection is primarily concerned with preventing loss and corruption. Therefore, it’s important that any data protection strategy must secure data and restore operations if the worst happens. We’ll explore the main benefits of securing your data and when your organization should start undertaking aggressive data protection operations.

Why is data protection important?

Investing your time and money in data protection efforts comes with many benefits. The main advantage of data protection is to lessen or eliminate financial losses related to cyberattacks. Another emerging necessity is that businesses are required to comply with regulatory laws. Once you have created the right data protection policies and structures, you will improve the productivity of your employees and serve your customers better.

Since most businesses have integrated digital elements into their day-to-day business operations, the Securities and Exchange Commission has created extensive data protection requirements. Similarly, customers now expect companies to protect their data all the time.

There may be direct and indirect financial challenges related to data compromise. Data loss can compromise the business’s finances and lead to the loss of money. The company can directly deplete its finances when it gets fined for failing to meet regulatory requirements or making poor judgments due to a lack of critical data. Indirect financial losses arise when customers and investors avoid a business due to its weak data protection strategies.

The US government and other governments worldwide have begun drafting a series of laws to protect the consumer and corporate data. If your business fails to comply with these laws, restrictions and financial fines may start knocking on your door. That is why data protection and compliance is one of the biggest worries of business executives.

Knowing when it’s time to create a data protection plan

Many situations and occurrences can trigger the development of a data protection plan. Therefore, your business’s privacy policy must be evaluated and radically changed. Some of these situations include:

Regulatory changes

New data laws are being discussed and implemented every year. At some point, it may become imperative to have a new data protection plan to survive in the evolving legal environment. If your business operates in many countries, your data protection plan must consider the various privacy laws in each of these countries.

Introduction of new services and products

If you introduce new services and products, you may need to review your privacy policy. For instance, if you start creating new products for children, your data protection plan should include principles from the Children’s Online Privacy Protection Act. This act specifies how organizations should handle data of persons under the age of 13.

Corporate change

Entry into a new market introduces new data categories into the business. In some cases, your existing data protection plan may not have provisions for protecting these new types of data. For instance, you may start operating in a new geographical area with unique consumers.

New data uses

Data analysis has become a crucial part of protecting your business data and improving customer service. A time may come when your business needs to start processing your existing data in a different manner. Initially, your business may have just been concerned with storing your data. Still, it would be best if you now examine your internal policies and relevant laws before using the data.

The process of creating the right data protection policy will be more straightforward if you have the right partner. A partner that is well aware of the current regulatory compliance requirements can help you to identify any gaps you may not have recognized previously.

At KME Systems, we specialize in fortifying businesses’ data protection plans. Contact us for more information.