Now that everything is stored on a digital device, this data is vulnerable to a loss more than ever. Your sensitive personal data such as your address or social security number or even your credit card information are stored in companies’ databases. This personal data is susceptible to hacking or misuse. At times like these, data privacy has become very important.
For a better understanding of information related to privacy issues and data protection rights, you must understand why data privacy is important and why your data needs protection.
Let’s take a look at the various reasons for data privacy and data protection.
Why Is Data Privacy Important
There are many reasons why data privacy is important. People spend lots of money, time and efforts on the protection of their valuable data. The main reason for data protection is to minimize any sort of financial loss. Also, if you want to comply with the regulators and meet your customers’ expectations, you need to protect your data. According to many new regulations, you are expected to make your data available 24x7. And this is not possible if your data is not secured.
#1. Fear Of Financial Loss
The most important reason for data privacy is to avoid financial loss. Data is an important corporate asset. It needs to be protected from people who may misuse vital information. When this data is at risk, businesses are vulnerable to direct financial losses. It can also cause a dip in the customers as they do not feel safe with the business. Once your data is stolen, you may not know the extent of damage that your business can suffer.
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#2. Compliance With Regulations
The second reason for data protection is the recent fluctuations in regulations. Earlier there were not many regulations for sensitive personal data. As the usage of computers increased, governments of the world started to tighten the security measures on data protection. Government agencies have been imposing new and improved regulations on stored data. If businesses do not comply with them, they have to face dire consequences. The regulations are aimed at protecting users’ important and sensitive personal data. They define what data is to be retained and for how long. Loss of this valuable data can be considered as a violation of the law.
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Data protection is directly connected to the productivity of the businesses. Productivity is of utmost importance to the organization and may be ignored when talking about data privacy or protection. Loss of vital information lowers the overall productivity of employees as they now have to deal with customers’ issues without any databases. Data loss also results in system failures, and this directly hampers the productivity of employees.
In the 21st Century, customers expect businesses to operate 24x7. The way the economy is growing, customers can no longer tolerate security lapses at the hands of their businesses. Even temporary losses can affect business hugely. They can lose millions of dollars and customers in just a few seconds. The fear of loss has made companies shell out big bucks for data protection and privacy. The technology cannot fail in this 24x7 scenario, and this is why data privacy and protection has become of huge importance.
Do you think your data is secured or does it need more protection? Let us know in the comments section below.
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