Privacy laws and regulations can be perplexing, and mistakes are inevitable. The majority of typical data privacy blunders can be prevented with better understanding.
According to the IBM and Ponemon Institute’s Cost of Data Breach Study, the average cost of a data breach in the United States is USD 8 million. The average data breach affected 25,575 user accounts, indicating that, in addition to financial losses, most events result in a loss of consumer confidence and reputation harm.
Some privacy risks are overlooked even by the most diligent businesses. Here are four data privacy mistakes that every company must avoid.
Managing privacy only occasionally
The most typical blunder made by businesses is failing to execute regular privacy management efforts.
As a company develops, this laissez-faire approach leads to inadequate privacy and weak security safeguards, as well as vulnerabilities. The dangers that follow may be exploited, resulting in security issues, data breaches, negative headlines, a loss of confidence, disgruntled consumers, and, in certain cases, litigation. These flaws will be discovered by auditors and authorities, potentially leading to hefty non-compliance penalties and fines.
Only half of the survey participants execute continuous risk management and monitor compliance and enforcement, according to the ISACA Privacy in Practice 2022 poll. Only 33% discuss the dangers of emerging technology.
Insufficient employee training
According to several studies, inexperienced personnel are in danger of committing a security breach at their workplace. In reality, the majority of data breaches at businesses are still caused by human mistakes, which usually means that an employee accidentally leaked important data during a hacker attack. Enterprises make a colossal error by focusing entirely on external threats and ignoring the possibility of insiders causing a breach. Organizations cannot afford to keep their staff in the dark when it comes to hacking attacks, which are more common than ever before.
Failure to provide comprehensive and regular privacy training
The majority of companies do not give enough and effective security and privacy training, and when they do, it seldom results in workers functioning in a more secure and privacy-protective manner.
Gamification-based training, for example, is entertaining and may enhance training, but it rarely addresses specific job duties. In addition to baseline privacy training, more regular training on a variety of issues relevant to workers’ professional activities should be offered. There also needs to be touch points between multiple training sessions that remind employees to conduct business in a way that respects privacy and protects personal data.
According to the ISACA Privacy in Practice 2022 study, just 13% of companies give quarterly training, while another 13% don’t know if training is provided or say it doesn’t happen.
Breach and incidents will occur unless organizations give effective continuous education that teaches how to do job activities that promote privacy and secure data. Organizations may not even be aware of a breach until lawsuits are launched against them if they lack awareness.
Failure to prepare for unexpected events
Companies must prepare an incident response plan that can be employed in the case of a security crisis, much as they must prepare a fire safety and evacuation plan so that workers can rapidly evacuate the building in the event of a fire. Incident response plans can be used to speed containment, remediation, and inquiry in the critical moments following an incident’s discovery. Any delay might result in data loss and operational interruption. Furthermore, several state legislation mandates that security breaches be reported within days of the occurrence, and without a strategy in place, a company may struggle to satisfy those statutory limits.