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Data Privacy: What is it and Why is it important?

Every organization that has a digital presence is required to mention its data privacy policy and it is important. Such policies describe in detail about the usage of data collected from customers in terms of data transfer and data security. There have been numerous incidents of data breaches which has resulted in the payment of hefty fines by organizations. As a result, more stringent laws are being designed to protect the personal data collected from people. Businesses further incorporate the regulation requirements and practices while catering to the needs of a particular nation.

why is data privacy important, what is data privacy
Why is Data Privacy Important

What is Personal Data?

Several businesses gather information on customers to study their buying behavior. During this process, organizations collect data in the form of names, addresses, phone numbers, date of birth, and emails. This data is later processed into useful information and used for future references. As it constitutes as personal data, organizations are required to follow certain regulations for preventing misuse of such sensitive information.

What is Data Privacy?

Data privacy refers to the process which describes how information or data should be secured based on the degree of importance. The digital era has forced people to protect their critical personal information from falling into the wrong hands. There have been several cases where organizations have incurred huge fine amounts due to their inability of securing sensitive information. As a result, organizations are forced to have a top-notch security system in place to protect the data collected from their customers.

Why is data privacy important?

Various nations have introduced their own data privacy laws to protect the personal data of their citizens. General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA), California Privacy Rights Act (CPRA), and New York SHIELD Act are some of the data privacy laws that have gained recognition in the past years. Multinational corporations need to look for and adapt their strategies according to the prevalent regulations of data privacy.

EU GDPR has paved way for data privacy laws that evolved globally. This regulation was enforced in May 2018 by the European Union for protecting its citizens. Under this law, data subjects or customers have to explicitly provide consent to businesses that collect their data. Also, organizations are required to inform their supervisors as well as data subjects in case of a data breach. Threats of data breaches have necessitated businesses to focus on applying the best practices of data processing. Let us have a look at few tips on how businesses and certified professionals can incorporate data privacy laws.

Data Privacy Compliance

5 tips for ensuring compliance with data privacy laws

  • Follow the latest practices

Businesses need to stay up to date with the latest practices of data protection that are being followed in the industry. With technological advancements, organizations constantly need to change their privacy policies as per the changes in the laws and regulations.

  • Document the flow of data

We know that large enterprises deal with huge amounts of data on a daily basis. This necessitates organizations to document how data flows within the organization. Usually, organizations follow the process of giving access to sensitive information to only certain employees working at higher levels in the organization. This prevents cases of data breaches from occurring within the organization. Also, authorities can easily unveil the person responsible for the data breach.

  • Hire experts:

As data protection laws are constantly evolving, businesses need experts in the matter while changing their marketing strategies. As a result, individuals owning the certification of EU GDPR Foundation are recognized by such organizations. Such certified professionals play a vital role in developing a compliance program as per the regulations applicable. Instilling the compliance program as per the requirements of the regulation builds trust among the clientele of the organization.

  • Predict the breaches:

Organizations meet with several data breach cases each day. Even on meeting the compliance requirements, organizations may still be at risk. Therefore, documenting the breaches helps businesses to refer to them in the future while dealing with similar circumstances. Furthermore, certified professionals need to engage in creating tactical responses to data breaches. This helps in mitigating the non-compliance fine amounts that a business may incur due to a data breach.

  • Stay prepared:

While instilling a robust non-compliance system, businesses need to have a systematic procedure for reporting a data breach. Businesses are required to show every trace of evidence that proves their compliance with data regulation. Such documents need to be kept readily available as and when authorities investigate the data breach.  


Organizations operating in the virtual world are more prone to data breaches as they deal with critical information which can be misused. This necessitates businesses to develop a compliance program that helps in getting recognized by clients and builds their trust. EU GDPR Foundation Certification holders assist businesses in developing such programs.  Furthermore, complying with the latest data regulation practices helps organizations to avoid paying hefty fine amounts.

Posted in GDPR

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