With the rise of the Internet, the recent explosion of mobile technology, and the vast number of transactions being completed electronically, data has almost become a currency onto itself. Soon nearly all companies and organizations will become dealers of data in one way or another, whether they are simply collecting and storing it or actively putting it to use in their business. Many data breaches have already taken place and there is a big push for data protection regulations and security to be put into place. In the modern age, where this data is effectively currency there are many reasons to properly manage and protect data, according to data governance expert Daptiv.
- Protection from Financial Loss
According to an article on Forbes, one of the biggest single reasons companies should put data protection strategies into place is the need to avoid financial loss. Most people and organizations now recognize how financially valuable and important data is as a corporate asset. Not investing in security precautions can lead to various direct and indirect losses in a number of areas including sales, fines, or monetary judgments. Security breaches and loss of personal information are widely feared and a company that is subject to a breach can expect a huge drop-off in investor confidence and an exodus of customers. In addition, stolen data may be altered and used negatively so that the financial effects are not known until a much later date, thereby magnifying the negative results.
- Protecting Clients and Customers
Protection of personal information for individual clients and customers is hugely important not only in the sense that insecure customers will take their business elsewhere, but also for ethical reasons and compliance with laws. Since big data is a relatively new phenomenon there’s a great deal of ambiguity about whether personal information collected for one purpose can be rightly and legally re-purposed for another use. Companies should be mindful of protecting the goodwill of their customers who have submitted their personal information willingly for specific purposes and it should only be used for that which they have been given permission. As such, The Guardian states that legislatures are pushing for data protection bills and introducing measures like a digital privacy bill of rights.
- Maintaining Productivity
Another factor is maintaining productivity. Since data has become such an important part of the way that business is done, any loss or breach in a database is a threat to overall productivity. It is nearly impossible for companies to work without access to their computer databases. Damage or system problems inevitably results in employees having difficulties doing their jobs and a poor data protection strategy can leave the system inaccessible for long periods of time.
- Compliance with Data Regulation
Finally, data protection strategy is important in terms of following the recent stream of regulations that governments are spewing out. This data breach infographic, displays the importance of data and electronic communications to business along with recent and severe breaches in security has set legislatures to work by their own accord and the will of their concerned constituents, claims. The laws concerning data and electronic documentation are in constant flux, but becoming increasingly stringent as the hoard of data increases. Any violation of these laws can lead to huge corporate fines, a legal nightmare, and possibly dissolution of the company.