Non compliance, data breaches and what businesses can do to prevent it

Non-compliance, Data Breaches and What Businesses Can Do to Prevent It Achieving compliance is complex and challenging. Data security can be ensured with the support of a reliable data entry company.

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Today almost all businesses have become digital with solutions such as data conversion services playing an important role in easing the transition. As digital advancements create new vectors for risk, it is important to ensure data protection and data security when introducing new technologies into your organization. In a digital economy businesses, small or large, can reach out to more consumers and take better decisions for business growth. But these same capabilities also amplify mistakes and make exposure to business risk more systemic, which can lead to losing potential customers, market share and value.

Data security and privacy regulations make up an expanding landscape comprising a number of overlapping

and confusing standards like HIPAA, SOX,

FCRA, GDPR, PCI

DSS, and so on. Security and risk management personnel should understand the nature of these laws and standards and set security strategies accordingly to ensure that data is safe and secure.

Conditions That Can Compromise Compliance •

There can be gaps even in compliance programs since compliance is dynamic.

This is because laws change, technologies change, and the threats change. So proper data management that includes security policy training, technology maintenance, awareness programs, regular systems and response testing is important.

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The most common condition that can compromise compliance is shadow IT, which means technologies that operate within the enterprise outside the purview of IT management. A minor failure to document compliance processes or enforce existing processes and lack of visibility into the means of collecting, managing and storing data can compromise compliance.

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Direct and indirect consequences of non-compliance include increased costs and tarnished business reputation, both of which can cripple a business.

Consequences of Non-compliance Non-compliance can put your organization at risk of a data breach and huge financial costs may be involved to recover data. Following are six consequences of data breach caused by non-compliance.

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Fines from banks: When credit cards are affected, banks reissue new cards to their customers. This process incurs huge cost for banks and they are likely to recoup this cost from the organization whose breach prompted the action by levying fines.

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Government audits: Any egregious breach of consumer data risks action by the Federal Trade Commission (FTC) acting on behalf of US consumers. If the organization is found to be out of compliance and negligent, the FTC imposes fine on the company and also requires expensive annual compliance audits for years following the negligent behaviour.

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Loss of revenue: A data breach may cause customers to lose trust in the affected organization and this may lead to customers taking their business elsewhere.

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Loss of reputation: When an organization faces data breach, loss of reputation soon follows. Organizations will incur cost associated with increased marketing, communications and public relations campaigns. As the saying goes, it takes years to gain a good reputation but only a moment to lose it.

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Lawsuits: A data breach not only affects the breached organization but also negatively impacts employees, consumers, customers, partners and service providers and any of them can take a legal action to seek justice and protection.

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Remediation cost and compensation: Data breach also comes with many costs associated with forensic investigation to determine the source and the cause of the breach, fix the gaps that were exploited and address any residual risk to consumers or others.

3 Ways to Keep Data Safe It is important for every organization to implement a good security and compliance strategy to ensure that their data is safe. Proper management of data helps to ensure security and compliance: •

Human errors are one of the weakest links in the security chain. But workflow and automation processes prevent the data from being vulnerable. Automate processes associated with vital applications and services while the organization’s security and compliance functions operate in the background.

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As the network grows more complex and as perimeter expands to include mobile devices, IT administrators need even greater level of transparency into the network in order to gain a top down view of the infrastructure that is required to achieve compliance and reduce other security and performance risks.

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Almost every organization has its own set of regulatory expectation and challenges based on industry, risk and other factors. Specialized compliance tools offering customized data workflows and configuration ensure that the data is secured.

Achieving compliance is a complex and challenging process and data security must be taken seriously. The abovementioned tips can ensure security of data in an organization.

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Partnering with a provider of data cleansing services can ensure clean and reliable data as well as proper and secure maintenance of data.

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