Data privacy describes how to treat personal information. It includes rules and regulations about the collection, storage, use and disposal of personal data linked to a person. Privacy laws also govern the way a business can share that information with third parties. Data privacy is an important topic for businesses because it can affect a company’s reputation, legal liability and customer trust. It’s essential for people because it ensures that they remain in control of their own data.
Data is the lifeblood of many organizations. It fuels innovation and drives new business opportunities, from personalized experiences for consumers to science-driven insights across industries. Consumers want to trust that companies are collecting and handling their personal information responsibly. Privacy regulations like Europe’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) demand strict access controls to protect sensitive data.
For example, companies need to clearly communicate the purpose of any data they collect, limit it to that purpose and only keep it for as long as necessary. They must also make privacy a priority throughout the organization so that it’s baked into all processes and products. Privacy “by design” means that any new product, service or process must consider how privacy will be impacted, including what data is collected and how it will be used. This helps minimize the impact of breaches and data misuse, and it also supports regulatory compliance and security posture. It can help companies avoid costly fines and other penalties if they don’t comply with data privacy laws.
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