5 things you need to know about Data Privacy

What is Data Privacy?

It is a broad term, but essentially data privacy is a part of the data protection area that deals with the proper handling of data.

This includes how data should be collected, stored, and shared with any third parties, as well as compliance with the applicable privacy laws (such as CCPA or GDPR- you can read more about their differences between GDPR and CCPA).

representation of data privacy vs. data security fieldsHowever, we have to add that data privacy is not only about the proper handling of data but also about the public expectation of privacy.

Organizations need to learn how to process personal data while protecting privacy preferences of individuals. This is what individuals expect from organizations. This is their vision of privacy.

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5 Important Facts About Data Privacy

1. Data Privacy is not the same as Data Security

Difference between data privacy and data security

To properly protect data and comply with data protection laws, you need both Data Privacy and Data Security. And even though these two terms can look similar, their distinctions are clearer once you start to dissect them.

Read more about the difference between data privacy and data security!

Data Security definition

Data Security regards to the means of protection that an organization is taking in order to prevent any third party from unauthorized access to digital data. It focuses on the protection of data from malicious attacks and prevents the exploitation of stolen data (data breach or cyber-attack). It includes Access control, Encryption, Network security, etc.

Data Privacy definition

Data Privacy focuses on the rights of individuals, the purpose of data collection and processing, privacy preferences, and the way organizations govern personal data of data subjects. It focuses on how to collect, process, share, archive, and delete the data in accordance with the law.

What is more important for your organization?

Imagine that your company introduces elaborate data security methods using all the necessary means and available measures to protect data, but has failed to collect that data on the valid lawful base.

No matter the measures of securing your data, this would be a violation of data privacy. This example shows us that data security can exist without data privacy, but not the other way around.

2. Importance of Transparency

In this age of data economy, true company value lies in the collected customer’s data. This means data is an asset worthy of protecting and keeping.

What companies keep forgetting is that personal data of individuals processed by the companies are only borrowed.

Privacy laws enable individuals to exercise their rights, such as the right to be forgotten, and in certain circumstances, individuals can take back ownership of their data.

In order for companies to keep the data and keep the trust, they will have to demonstrate transparency by openly communicating on what data they collect, for what purposes, who is a data processor, and so on.

If you want to read more about how data breach affects the customer relationship or how to (re)connect with customers and build trust [numbers & research], we recommend:

Blog: Data breach and (re)building customer trust

3. Privacy is the right to be left alone

Why is privacy so important? You have nothing to hide, right? Well, privacy is your right to be left alone, and while it might not be challenged at this moment, it should still be protected. It is your insurance that guarantees you will be able to exercise your right to privacy when you want it and if you want it.

This has been recognized by governments worldwide and resulted in numerous data protection laws. GDPR represents the most groundbreaking and wholesome data protection regulation and imposes huge fines in order to protect the privacy of an individual.

This should be taken as a warning to all organizations and companies, that violating GDPR rights can result in huge fines. In the adjustment period, the regulatory authorities were very moderate when proposing GDPR fines, but trends show that they have started to prepare organizations for more considerable fines.

And don’t be fooled, not even almighty Google is immune to the swift hand of GDPR justice, read what happened here!

4.Consequences of non-compliance

With the development of technology, there are more and more intrusive ways to collect and process personal information.

Very soon, it will become incredibly risky for companies to navigate through data privacy laws unprepared. Companies will be at risk of fines and lawsuits, not to mention company reputation and customer loyalty.

Facebook has already set aside $3 billion to $5 billion for ongoing inquiries regarding multiple data breaches and mishandling of data. However, not every company can afford such a budget for non-compliance.

The important thing is to take proactive steps and measures, like implementing appropriate data safeguards or implementing data protection software that will help you guide your privacy program, automate processes and navigate you through applicable data protection laws.

There is also one more thing, GDPR requires you to implement proper technical and organizational measures to ensure a level of security appropriate to the risk (Article 32 GDPR -Security of processing). A potential data breach can cost your company more than you think. According to the Cost of a Data Breach Report 2020, conducted by the Ponemon Institute, the average total cost of a data breach is USD 3.86 million:

Cost of a data breach report in 20205. There are more and more privacy regulations worldwide

GDPR is not the first privacy law, but many data privacy laws before GDPR were outdated, given that both technology and the way we communicate and share our data has changed greatly in just a few years.

The GDPR marked the first serious intent to control the excessive exploitation of personal data and to fine data processors and data controllers appropriately.

Most importantly, GDPR has given data subjects the power to regain control over their privacy.

After the GDPR, the US Congress has shown its intent to pass similar laws like CCPA, and more soon to follow. You can read more about this in our article Read the blog: 7 Data Privacy Trends for 2020

In the years to come data protection laws will continue to evolve, as will data privacy.

Organizations should embrace the fact that they will need to take this into consideration when creating their business plans, strategy, and marketing activities. Not only because of fines but also because this is what individuals will expect.

Worldwide trends in Data Privacy

A long list of data privacy law initiatives are indicating that there is an accelerating change in the way companies and individuals are recognizing the value and importance of protecting user’s data.

Thriving businesses have already started to form their future data privacy and data protection strategies.

The Big Four each have had their own struggles with positioning themselves as trustworthy companies. However, they have one thing in common. They have recognized the importance of data privacy.

Apple’s CEO, Tim Cook, is repeatedly giving passionate speeches about data privacy initiatives provoking, comprehensive U.S. data-privacy law focused on minimizing data collection, data security, and informing users.

No matter the motives of companies, one thing cannot be overlooked, IAPP research indicates that by 2022, half of our planet’s population will have its personal information covered under local privacy regulations in line with the GDPR.

Source: https://www.dlapiperdataprotection.com/

The companies will need to be able to demonstrate compliance and show transparency in the way they handle data.

How can you achieve your compliance goals faster?

We are exchanging more data than ever, and in the ways, we haven’t before. The technology is changing and this requires data privacy solutions to follow that change.

Data Protection laws grant individuals certain rights (right to data portability, right to be forgotten, the right to rectification …), and companies are obligated to fulfill these rights within the statutory deadline.

The problem arises because most companies are not able to locate all the data or answer to data subject’s requests in time.

Data privacy software can help you achieve and demonstrate compliance by automating and operationalizing data privacy principles. Privacy software tracks your statutory deadlines for each data subject request and helps you understand your customers better.