What is Data Privacy and Why is it Important?
Getting to know what data privacy is and why it is important will help ensure that your business is properly protecting customer information. At Danory Technology Partners, we understand how important it is to keep your company and customer data safe. That is why we offer a range of digital audit services, including data risk audits, that are designed to help you better protect your company’s vital information and data.
What is Data Privacy?
Data privacy focuses on how a piece of information or data should be handled based on its level of importance. While most people tend to relate data privacy to protecting critical information, such as social security numbers, health and medical records, financial data, and sensitive personal information, data privacy can also include the information that helps a company operate. Important company data can include everything from proprietary research and development data to financial information about how the company spends and invests money.
Why is Data Privacy Important?
When it comes to collecting and protecting a customer’s personal data, businesses are required to follow fair business processes and regulations. This means that companies need to train and regulate their employees over the collection, sharing, and use of sensitive data to ensure that their customers’ information privacy is being properly respected.
Data Privacy Acts and Laws
Since lawmakers recognize the importance of having data privacy regulations, companies are now required to determine which data privacy acts and laws affect their users. This means that companies are responsible for knowing which country and state the data originated from, what personally identifiable information it might contain, and the usage methodology.
Some of the most recent data privacy regulations that companies should be aware of include:
General Data Protection Regulation (GDPR)
The GDPR is designed to help protect EU citizen personal data. The GDPR provides consumers with certain rights over their data, while also placing security obligations on companies holding their data. Companies that are affected by this regulation need to take certain steps to ensure compliancy, including:
- Explicit opt-in consent
- The right to request your own data
- The right to delete your own data
Personal Information Protection Act (PIPA)
Similar to the GDPR, PIPA works to help protect the personal information of citizens living in British Columbia. PIPA provides users with certain rights over their data, as well as places certain provisions on businesses, such as:
- Consent must be received for collecting personal information
- Personal information can only be collected for reasonable purposes
- Limited use and disclosure of personal information
- Limited access to personal information
- Any stored personal information must be accurate and complete
- Designation of a privacy officer
- Requires policies and procedures for privacy breaches
- Requires measures for complaint resolutions
- Requires special rules for employment relationships
Gramm-Leach-Bliley Act (GLBA)
The GLBA requires financial institutions to safeguard consumer financial data. By adhering to this act, companies can reduce potential fines and reputational harm due to unauthorized sharing or loss of sensitive financial data.
Health Information Privacy and Portability Act (HIPAA)
HIPPA is a data privacy regulation that is designed to safeguard patient personal health information. Since healthcare providers have always been an attractive target for data breaches, HIPPA was put into place to keep patient information confidential.
If you would like to learn more about what data privacy is and why it is important, or if you are interested in our data risk audit services, please contact Danory Technology Partners at 604-371-0714 or by filling out a contact form on our website.