Data privacy is the principle that people have control over their personal information and how it is collected, used and shared. Companies need to champion this principle and establish it as a priority if they want to maintain customer trust, retain staff and remain compliant with regulations like the GDPR.
A company’s adherence to data privacy standards also helps it stand out from competitors. For example, 56% of consumers who are mistrustful of businesses are more likely to do business with a company that is transparent about its data practices and privacy policies.
As the global economy becomes more digital, data privacy is an issue that’s gaining prominence. Countries around the world are passing legislation to protect consumer data and make it easier for consumers to understand and manage how their information is being used. This includes the GDPR, Children’s Online Privacy Protection Act (COPPA), Health Insurance Portability and Accountability Act (HIPAA) and more.
The repercussions of cybercriminals gaining access to sensitive data are profound and long-lasting. They can jeopardize intellectual property, diminish a competitive edge and tarnish an organization’s reputation among clients and stakeholders. Additionally, the cost of data breaches continues to climb, reaching nearly $5 million in 2024. To avoid these consequences, organizations must champion and enforce data privacy as an integral part of their business operations. This means informing individuals about what data is being collected, obtaining consent to use it and implementing security measures like multi-factor authentication to ensure that only authorized personnel can access sensitive information.