So you’ve started a company and have been developing a product. As part of this process, you have gathered data about potential customers. It’s now time to start advertising your product, so the first thing you need is to work out how much data you have stored on your potential customers.
You want as many people as possible to use your service or product. Still, at the same time, you need to be aware that every piece of personal data shared via your website or app could cost your business big bucks if managed incorrectly. Here are some things you should know about data compliance and why it’s so important to your business.
What is Data Security Compliance?
A company that takes data security seriously will have a system to ensure that any information they hold on an individual is kept safe. Sensitive data could be passwords, billing details, or personal communications. By ensuring your business is compliant with data security regulations, you are who share their information with you and ensuring it remains confidential at all times.
Data compliance is the process of ensuring your business is following data security regulations, as well as any specific requirements set out by the governing body in your region. Data compliance could include anything from how you store data to how you use it for marketing purposes.
A big part of ensuring compliance is having a policy in place at your business. This plan is a set of policies and practices your company follows to ensure security compliance throughout the life cycle of your data.
Why Data Compliance Matters
There are many reasons why . Firstly, it protects the interests of individuals who have shared their information with you. By ensuring that their data is kept confidential and secure at all times, you demonstrate that you take data security seriously. Secondly, data compliance can help protect your business from hefty fines if something goes wrong.
With increased regulation comes increased responsibility. Any company that fails to protect its customers’ data may find itself in serious financial trouble, with its reputation also taking a beating as a result. The General Data Protection Regulation (GDPR) came into place on May 25th, 2018, and states that companies can be fined up to four percent of their global turnover for failing to comply. So it’s more important than ever that you’re doing everything possible to ensure your business is compliant before this date rolls around. The GDPR applies not only to residents and companies located in Europe but any company that sends data across European servers, so this is a big one worldwide.
How to Ensure You Remain Compliant
The first step towards ensuring your business is data compliant is conducting an audit on the information you hold on your customers and determining whether not it needs to be shared with them directly. Once you’ve finished this, you need to ensure that any data you hold on your customers are kept safe. This usually means investing in a secure system for storing passwords and other sensitive information and ensuring that any payment methods are stored safely.
Companies should avoid using personal information when it comes to marketing unless it’s necessary. For example, if somebody subscribed to your email list under their own volition by signing up to an event or buying something from your website, then there’s no issue here.
However, if somebody has entered an email address simply hoping not to be spammed with marketing mailings, then sending them promotional emails could constitute spamming and lead to serious trouble for your business. Although this doesn’t mean that you can’t market to your customers, it does mean that you need to ensure the way you do it is compliant with data security regulations.
The most important thing any business can do to remain compliant with data security regulations is to make sure they’ve got a data governance plan in place for what happens if something goes wrong. Many companies have exposed themselves after systems are breached and data leaks out publicly. If this happens, you need to be prepared so that your company doesn’t fall into financial disrepair due to the breach.
Final Thoughts
So there you have it – a quick guide to data security compliance and why it’s so important for businesses. By following the tips above, you can ensure that your company remains compliant with all relevant regulations and protect your customers’ interests in the process.