Data privacy is the protection of personal information from unauthorized access, use or disclosure. It includes implementing privacy policies, obtaining informed consent, practicing data minimization, conducting privacy impact assessments and ensuring compliance with data regulatory standards.
Data security is a subset of data privacy and focuses on protecting information from unauthorized access, modification or loss by using technologies like encryption, password protection and multi-factor authentication. It also encompasses establishing and enforcing appropriate data classification, including the use of metadata.
In the digital era, it’s an ethical obligation for businesses to protect personal information of their customers and employees. By demonstrating their commitment to data privacy, companies can build trust and loyalty that translates into competitive advantage.
A big challenge to data privacy is that technological advancements frequently outpace privacy regulations. This can make it difficult for organizations to keep up and implement adequate safeguards. Other challenges include balancing access and protection, finding resources to implement privacy measures, and the need to manage third-party risks.
One of the best ways to address these issues is to prioritize data privacy from the start. When developing new products, services or processes, data privacy should be considered “by design and by default.” This means that any product, process or activity must consider the implications of data processing on the personal information of its users, whether it’s storing, sharing or processing that data. It must also provide easy access to data privacy information and options for people to raise concerns or opt-out.