In today’s business environment, data security is of the utmost importance. Most businesses collect and keep important personal information of the customers, which may include their names, credit card numbers, Social Security numbers, contact information, and other data identifying them.
It is necessary to collect the information because the business needs it to meet payroll requirements, fill orders, conclude business transactions, and process sales and payments.
Problems from Data Breaches
As the threat of data breach is always there, data security is top of mind for most customers and businesses, which is why customers prefer to deal with companies they can trust. They want assurance that their personal information will be safe. But, as you know, many data breaches occur all the time.
A data breach can cause much damage to the company and its customers. It can lead to identity theft, fraud, loss of business, hefty fines, and several legal problems.
Reasons to Keep Data Secure
You will find several reasons to maintain data security. Some businesses have enterprise security teams. Others work with security platform providers.
What is essential is to know the requirements, as well as the business compliance and regulations affecting businesses today. For example, companies that process credit card payments require SOC 2 compliance. this SOC 2 compliance checklist provides a deeper understanding of SOC 2 requirements.
Here are the top reasons why data security is vital:
1. Prevents penalties for non-compliance
Organizations must implement methods to ensure the privacy of personal information. Their failure to follow regulatory compliance requirements means enormous fines.
Further, you should know that the penalties for non-compliance could cover several years. Loss of personal data can mean losing consumers’ trust.
2. Prevents data breaches
All businesses must ensure the protection of customer data. Moreover, providing data security allows you to meet the legal requirements on data privacy. It also means limiting the number of security-related incidents caused by data breaches. If you do not have data breaches or you only suffer from minor incidences, your business will not lose the trust of its customers and business partners.
More importantly, protecting data prevents you from dealing with lawsuits, multi-year penalties, and heavy fines.
3. Maintains and improves the value of your brand
Organizations that suffered a data breach incur damage to their brand value and reputation. Thus, organizations make sure that they inform their customers and business partners about the systems they have in place to protect data privacy.
4. Helps your business grow
Consumers want to control which organizations and companies they share their personal information with. They also want to control the types of information they want to give. Therefore, if your business has privacy protection in place, consumers are more likely to choose you.
As a business owner, ensure that you comply with regulations and business compliance requirements for data privacy and protection. Keeping personal information and other types of data private makes consumers trust you, so it is essential to let them know that you can keep their data secure.