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The Importance of Data Compliance




Data is the lifeblood of a business. It is the fuel of decision making, continuous improvement and quality control. But it also carries risks and can be easily compromised. That's why data compliance is a major component of any company's cybersecurity strategy.

What Is Data Compliance? You can get to know how data compliance helps in a business.


Data compliance is the process of achieving regulatory and industry standards for data protection, security and storage. It involves defining the applicable governance and developing policies, procedures and protocols to meet those requirements.

Defining Data Governance and Management


Successful companies integrate data governance with a comprehensive data management program that includes documentation of ownership, procedures, definitions and policies to bolster data compliance. This helps organizations meet both their legal and governmental obligations.

Understanding Data Privacy and Keeping It Safe


The right to privacy is essential in every organization, but it's particularly important when handling sensitive personal information. It's why a growing number of governments are placing stricter data protection regulations on businesses worldwide, including in China, the United Arab Emirates, and the European Union.


This means ensuring that all employees are trained on proper data privacy and how to protect it. It also means implementing technical and other measures to ensure the privacy of personal data is protected, such as encryption, access controls and secure storage. More details about data compliance is recorded here.


Besides the legal and governmental regulations, data compliance is also an important business practice to maintain for ethical reasons. Often, consumers or patients give companies their information, and it is up to the business to use it in a way that's appropriate.


In some cases, data compliance can be costly for a business to comply with. For example, fines can be as high as $7,500 per record, and a data breach is expensive for both the consumer and the business.


Not following data compliance regulations can also harm a company's reputation and cause customers to defect or avoid a company altogether. Studies show that 80% of consumers will not return to a business that has a data breach, and 52% will pay more for goods or services from another brand that is more secure.


Data is the lifeblood of a business, but it is also easily compromised. It's why a growing number and size of companies are introducing data protection and privacy policies.

Different Regulations Define Data Compliance


Various regulations define data compliance differently, and it is crucial to understand what each requires. Some focus on the ethics of maintaining user privacy while others emphasize the proper use of information. Some, such as the EU's General Data Protection Regulation (GDPR), require businesses to get consent before using consumer information.


These regulations also determine how long information must be stored, and what type of access is permitted or prohibited. Some, such as the California Consumer Privacy Act (CCPA), also place fines on organizations that violate these regulations.


Other regulations, such as those governing cloud providers, provide guidelines for proper data management and compliance. These can range from specific technical specifications, to compliance frameworks that are built from hundreds of compliance documents and technical guidelines. Knowledge is power and so you would like to top up what you have learned in this article at: https://en.wikipedia.org/wiki/Information_privacy.

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