Improving Data Privacy and Security Compliance

In the modern digital era, data is pivotal to organizational success. Consequently, data privacy and security compliance are crucial aspects of successful business operations. Today, the growing threats against data security have continued to garner concerns from organizations and regulators who continue to formulate regulations and ensure compliance with extant laws to prevent violations and avert the menace of cyberattacks.

We have, in one of our previous articles, laid a foundation for the importance of data and its management. In this article, we take on an exhaustive discussion of data security compliance, highlighting their roles in contemporary organizational operation and how businesses can implement them. We also look at some of the data regulations that exist for improved awareness and effective compliance.

Data Security Compliance Explained

There are regulations established to guide the use of sensitive information and safeguard them from unauthorized access and breaches.

Data security compliance refers to the adherence to the extant laws and standards established to ensure the protection of sensitive data from unauthorized access, processing, damage or destruction. Adherence to these regulations ensures protection against data breaches, cyber-attacks, and other security threats. It also prevents consequences such as legal liabilities, reputational damage, and financial penalties.

Data Security Regulations

Comprehensive data regulations like the EU’s General Data Protection Regulation (GDPR), the Health Insurance Portability and Accountability Act (HIPAA), and the CCPA of the United States of America (USA) have enabled a major shift in the scope of data security regulations highlighting a proactive approach to data protection, privacy, and cybersecurity.

Globally, the recognition of the importance of data security amidst cyber threats and the implications on individuals and organizations is leading to the emergence of new regulations. We will take a look at some of the prominent data regulations that exist.

General Data Protection Regulation (GDPR): GDPR is the European regulation that ensures the data protection and privacy of people within the continent and the European Economic Area (EEA) and for organizations outside of Europe dealing with EU citizens’ data. The GDPR is the toughest data privacy and security law in the world. Violating any part of the GDPR attracts harsh fines with penalties running into as high as €20 million or 4% of global revenue (whichever is higher), data subjects also have the right to seek compensation for damages.

The GDPR entered into force in 2016 after passing the European Parliament, and as of May 25, 2018, all organizations were required to be compliant.

UK GDPR: This is the adaptation and implementation of the EU’s General Data Protection Regulation in the United Kingdom. This law ensures the confidentiality and integrity of data. The UK GDPR, through appropriate organizational measures, also ascertains the appropriate protection of personal data against unauthorized access and processing, and from accidental loss, damage and destruction.

Health Insurance Portability and Accountability Act (HIPAA): HIPAA was established in 1996 to prevent patients’ confidential health information from being shared without their knowledge and consent. Penalties for violating the HIPAA  include monetary penalties ranging from $141 to $2,134,831 per violation, and potential imprisonment depending on the level of culpability.

California Consumer Privacy Act (CCPA): The CCPA is a privacy law enacted in 2018 by the State of California to regulate how the personal information of California residents is accessed, used, and shared by businesses irrespective of where they are located and where they operate from. The Law which has been in effect from January 1, 2020, is the first law of its kind in the United States.

Noncompliance with the CCPA incurs financial penalties. Violation shall be subject to an injunction and liable for a civil penalty of not more than two thousand five hundred dollars ($2,500) for each violation or seven thousand five hundred dollars ($7,500) for each intentional violation.

ISO/IEC 27001: The ISO/IEC 27001 is an international standard for information security management systems (ISMS) enforced by self-assessment and external auditors. It provides a framework for organizations to establish, implement, maintain, and continuously improve their information security management practices. ISO/IEC 27001 certification demonstrates compliance with rigorous security controls and risk management processes.

Sarbanes-Oxley Act (SOX): The SOX is a federal law in the United States that sets requirements for corporate governance, financial reporting, and internal controls to protect investors and prevent accounting fraud. Section 404 of SOX mandates internal controls over financial reporting (ICFR) to ensure the accuracy and reliability of financial statements. SOX compliance includes controls related to data security and integrity. It is enforced by the U.S. Securities and Exchange Commission (SEC).

Enforcing Data Regulation Compliance Strategies

The availability of data regulatory standards notwithstanding, it is important that practicable strategies are put in place to convert the regulations to actionable plans within an organization for effective compliance. The first step in compliance is to have a comprehensive assessment of an organization’s data security needs. This involves identifying the different types of data that an organization works with and assessing the potential risks associated with them, as well as how these risks impact the businesses. This will also enable the groundwork for developing a custom strategy and roadmap for compliance.

Best Practices for Data Security Compliance

Establishing and implementing effective data security compliance requires a holistic approach that incorporates various aspects of cybersecurity. Here are a few strategies for data security compliance and an enhanced data security posture:

Risk Assessment and Management: Regular risk assessments and security audits must be carried out to identify threats to business operations and data. This will enable organizations to identify, develop, and strengthen strategies to prevent threats based on potential impact on an organization.

Employee Training: Employees are often at the core of implementation in any organization so they must be trained and re-trained about how to handle data. Fostering a culture of data security and conducting regular security awareness training empowers employees to recognize and prevent threats to data privacy and security. Educating the workforce also enables them to understand their roles in protecting sensitive information and responding appropriately to threats, consequently reducing risks of insider incidents and data breaches.

Develop a Compliance Roadmap: Create a plan that is unique to your organization’s data security needs. Your compliance strategy must meet the regulatory requirements of your organization and align with your sector’s broader objectives. It must outline a clear and achievable action plan, including short-term goals, such as specific security measures, and long-term objectives, like achieving industry-specific compliance certifications.

It is also important to ensure that your compliance roadmap is adaptable to changes that may occur in the regulatory and business domains.

Continuous Monitoring and Incident Response: Implement security monitoring tools to detect security threats such as unauthorized access attempts and potential security breaches in real-time. Tools such as the Security Information and Event Management (SIEM) can be deployed to monitor network traffic, log activities, and correlate security events across its infrastructure. Enhancing a strong data security posture also demands that an incident response plan be established to promptly outline procedures for containing, investigating, and preventing security breaches.

Regular Systems Update: At the center of effective data security compliance is the regular update of operating systems, applications and software. This enables the early detection of threats that could predispose to cyberattacks and security breaches. Also, you must monitor and stay informed about new inventions and regulatory developments so that you can adjust your systems and security to ensure compliance.

Importance of Data Security Compliance

Implementing data security compliance presents significant benefits to any organization. Here are some of the reasons to invest in data security compliance:

Data Protection: Safeguarding sensitive data is the core of business operations. Adhering to regulatory standards often translates to protecting confidential customer information, proprietary business data, and intellectual property from unauthorized access, theft, damage, or manipulation. Data protection reduces the risks of cyber threats, data breaches, financial loss, reputational damage, and legal liabilities.

Maintaining Trust and Reputation: When organizations demonstrate data security compliance they are able to retain the trust of clients and partners who perceive them as trustworthy and reliable custodians of customer data. They attract and keep customers who prioritize privacy and security, and are certain that their data are preserved. This also translates to improved brand reputation for businesses and consequently increased customer loyalty, competitive advantage, and business growth.

Security Risk Mitigation: Data security compliance reduces the threats of cyberattacks and insider threats. Implementing security measures such as  encryption, access controls, and security monitoring reduces the chances of security breaches, downtime, diminished productivity, and financial losses.

Regulatory Compliance: Adherence to data protection laws and industry regulatory standards saves businesses from imposed fines, legal sanctions, financial and reputational damage. Businesses with proven data security compliance positions organizations for long-term success and sustainability, they are also able to keep the trust of their customers and regulatory bodies.

Operational Efficiency: Establishing an efficient compliance strategy streamlines operations and reduces administrative bottlenecks. Data security compliance also enables the automation of security tasks, optimizes resource allocation, centralizes security control and drives cost savings over time for improved efficiency.

Conclusion

At Telliswall, we prioritize data security and regulatory compliance as a critical part of business operatives. We bring the expertise and experience that support your collection, processing, analysis, and utilization of data while safeguarding the confidentiality and privacy of your clients. We also meticulously ensure that your organization complies with stringent security standards and maintain vigilant surveillance over platform configurations, offering you peace of mind in today’s dynamic digital landscape.

References

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Brook, C.  (2024). Data Privacy Best Practices: Ensure Compliance & Security https://www.digitalguardian.com/blog/data-privacy-best-practices-ensure-compliance-security

Cooley (2018). California Consumer Privacy Act of 2018 – Full Text https://cdp.cooley.com/ccpa-2018/

Porter A. (2023). Achieving SOX Compliance: Expert Tips and Insights https://bigid.com/blog/what-is-sox-compliance/

Premier (2024). HIPAA Training: Why You Need It https://www.premierece.com/blog/hipaa-training-why-you-need-it/#:~:text=The%20Health%20Insurance%20Portability%20and%20Accountability

Pronton AG (2024). Complete guide to GDPR Compliance                                https://gdpr.eu/

The HIPAA Journal (2024). What are the Penalties for HIPAA Violations? https://www.hipaajournal.com/what-are-the-penalties-for-hipaa-violations-7096/#

Titan File (2024) 22 Data Security Best Practices in 2024 [Infographic] https://www.titanfile.com/blog/data-security-best-practices/

Vistrada (2023) Data Security Compliance: Standards, Regulations, and Best Practices https://vistrada.com/resources/insights/data-security-compliance

Wolford, B. (2024). What is GDPR, the EU’s New Data Protection Law? https://gdpr.eu/what-is-gdpr/