Data protection is the process of safeguarding and protecting your personal information from corruption, compromise or loss and ensures that you remain in control of it. Any information that business stores digitally should be properly protected.
Data protection is not just a legal requirement, it is crucial. Every business should prioritize protecting their customer’s data. The common data that business usually stores include;
- Telephone numbers
- Health information
- Bank and credit card detail etc.
This kind of data contains sensitive information because some contain confidential information of staff or their next of kin and so any business should ensure that they protect these data by all means.
The following are some of data protection benefits;
1. Minimize financial loss
Data is considered a very important asset in an organization that needs to be safeguarded by all means. Loss of the information in business can result in direct financial losses, such as lost sales, fines, or monetary judgments.
Loss of data can also cause indirect losses when an investor’s confidence drop or when customers run to competitors. Stolen or altered data can result in financial effects when the company realizes it much later, and there’s little that can be done and hence magnified negative results.
2. Compliance with regulatory requirements
Businesses have to comply with the government’s regulations on electronic communications and stored data. Failure to comply, the business can face dire consequences. In some countries, the executives are held criminally liable to comply with laws regarding the storage and electronic communications.
These regulations determine what information to be stored, for how long, and under what conditions. Some of these regulations are designed to ensure the privacy of the information contained in the documents, databases, and files
Loss of critical information can be regarded as a violation of these regulations and may lead to the payment of a fine by the organization, or the managers can be subjected to legal action.
3. Maintaining a high level of productivity
Loss of essential data in an organization lowers the production level. This is because the staffs have to deal with customer issues without the help of computer databases. Loss of data can also lead to failure and application systems and this may make it difficult for staff to do their jobs.
A good business should have a good data protection strategy, one that doesn’t leave people waiting for too long for systems to be restored after a failure. This will make the staff idle or work in a reduced capacity and will affect productivity.
4. Meeting customers’ expectations
Customers expect businesses to operate at all times. If a business experiences downtime, customers will move to competitors. Many businesses are forced to deploy extensive data protection schemes because of the inability to operate because of the loss of data.
Many businesses operate 24/7, or their computers do, e.g. the healthcare or financial services. Even when there are no humans around, the computers can operate efficiently like take and place orders, send the orders to the warehouse and take care of financial transactions. It’s for this reason that data protection strategies should take into consideration, the customer’s 24/7 expectations.