How to mitigate five data protection risks
Businesses are required to store vast amounts of information which needs to be kept secure and confidential. If this confidential information is compromised, businesses can face significant consequences including reputation damage, legal action, and fines.
Before an effective data protection plan can be implemented, we need to understand the potential issues.
1. Identity theft
If identity thieves steal a person’s personal information, they can use it to commit a range of crimes including making fraudulent purchases and opening new financial accounts. Businesses have a responsibility to protect their customers from identity theft.
2. Data breaches
If an unauthorised person accesses sensitive information, it is considered a data breach. The 2022 IBM Security Cost of Data Breach Report states that more than 20% of data breaches were the result of contractor or employee error.
3. Compliance or legal consequences
Regulations to protect sensitive information are in place on a global level, and businesses must comply with these. Failing to comply can lead to legal issues, including criminal prosecution, lawsuits, and fines.
4. Reputation damage
All data breaches and thefts can negatively impact the reputation of a business. This may lead to decreased sales, lost customers, and problems securing new opportunities.
5. Financial losses
Failure to protect confidential information can have severe financial implications. These include providing compensation to those affected and the cost of investigating the cause of the issue.
Preventing data protection issues is a priority for all businesses. There are a number of ways this can be achieved, including:
1. Hard drive destruction and document shredding
When digital or physical documents are no longer required, it is imperative to ensure they are destroyed in a secure manner. If you’re looking for confidential shredding Cardiff, specialists such as Printwaste offer a selection of hard drive, media, and paper destruction services.
2. Data protection education
Ensuring that all team members understand the importance of data protection and the steps required to keep information secure can help prevent an array of avoidable mistakes. Providing clear guidelines and best practices is vital and should be distributed to employees, contractors and freelancers alike.