data banking
BUSINESS BUILDERS
The Manage basics: your Why cash data flow in security a few simple matters steps by Jessica Klander by Craig Veurink
TIPS 1.
Set a realistic goal for when you want to break even. This will help you to focus your efforts and provide a numerical benchmark for projecting your cash flow in the near future 2. Put cash flow before profits. It might seem counterintuitive, but TIPS if you aren’t organizing your cash flow, you’ll run into problems that 1. This a profitable area ofquarter law is changing might not be rapidly. able to fix Stay abreast of changes. 2. 3. Any Secure company credit ahead that collects of time.data Most is subject small business to data privacy owners standards should and secure must as be much aware credit of what as possible. laws govern This is the them. best way to be prepared 3. Encrypt for the unexpected sensitive data during 4. transmission Consider using and a payroll implement service. strict access Havingcontrols the professionals limiting who takecan care access of collecting sensitive payroll data.taxes saves 4. Conduct them an enormous regular security amount of time, helps streamline their cash flow penetration tests, system 5. monitoring, Schedule your payments. Don’t audits and go delinquent but do divide your assessments to identify payments into categories such as vulnerabilities and areas for “must pay,” “important to pay” and improvement. “flexible payment terms.” This can 5. Train employees on data security help keep and sufficient cashtoon hand. protocols practices reduce the risk of human error. 8 6
In today’s digital age, the personal and sensitive consumer information organizations store is the single greatest target for bad actors. Breaches can financially cripple unprepared small businesses. Business leaders must understand the contour of data privacy laws and best practices to safeguard this information. The importance of data privacy “Data privacy” describes the protection of personal and sensitive information from unauthorized access, use or disclosure. This includes social security numbers, financial records, health information and other details that could identify or harm individuals. Safeguarding such information is vital. A data breach may trigger legal consequences reporting obligations which Small and businesses are usually could divert internal resources and founded by entrepreneurs who have a cause financial losses uniquesignificant vision and a passion thatincluddrives ing fines, legal fees and compensatory them to work late hours, take chances restitution nonmonetary damages, and believeand in what they’re doing. But, including reputational harm. just as Thomas Edison once said that genius is 1 percent inspiration and 99 Laws regulations percentand perspiration, successfully rungoverning data privacy ning a small business requires rolling state, andininterupNumerous your sleeves andfederal putting signifinational cant time laws on govern more mundane, data privacy day-toand security. day matters. These laws are rapidly evolving and You broadly can be applied driven, toimpassioned large and small and have a greatBecause idea to of fillthis, a niche or serve businesses. it is imporcustomers new ways, if you tant to stay in abreast of newbut laws. Some don’t attend to the details of the businotable ones include: ness, you can create for yourself a heap • California Consumer Privacy of problems. Act (CCPA) applies to entities doHere, we’ll lookinatCalifornia one of the most ing business that meet important theserevenue business details: certainofgross requirements managing cash flow. for and who buy, sellEspecially or share personal earlyinformation startups, knowing howormuch of 100,000 more cash California is coming residents. in and going Theout, CCPA and accurately forecasting salescertain and grants California residents expenses, is key to maintaining your rights and controls over the use of company’s health. information. their personal No matter where you Portabilare in your • Health Insurance business, keep these things of& ity and Accountabilitytop Act mind:Health Information Technology for Economic and Clinical 1. Know when you will break Health (HIPAA/HITECH) safeevenguards patients’ protected health Every small business ownercovered keeps at information by requiring the front of their mindbusiness the question: entities and their associ-
UPSIZE NOVEMBER • DECEMBER 2023 2022
ates to comply with certain health record security standards and sets out health information use and disclosure requirements. • The Safeguards Rule of the Gramm-Leach-Bliley Act (GLBA) requires companies that offer consumers financial products or services such as loans, financial or investment advice or other consumer-facing financial products to explain their information-sharing practices and to implement specific security practices to safeguard sensitive information. Do these laws apply to my business? Data privacy laws and regulations ap“When do I startthat to turn a profit?” ply to businesses collect, maintain Rather than wonder, set ainformation. realistic goal or use sensitive consumer forbusinesses when you want break even.data This All shouldtounderstand will help you to standards focus yourand efforts privacy industry whatand provide numericalmay benchmark for laws andaregulations govern their projecting your and cashprocedures flow in thefor near internal policies future. safeguarding such information. 2. Putpractices cash-flow Best formanagement a small before profits business? This might seem counterintuitive, There is no single approach to implesince profits are how you menting a data privacy andsurvive. security However, if you aren’t organizing your management system. The appropriate cash flow, you’ll run intothe problems safeguards depend upon size of the that a profitable quarter might not be organization, the kind of information able to fix. Keep things organized and gathered and used, and the laws appliwell managed so you can be ready cable to your organization. With thatfor in whatever comes your way. mind, heresuccess are a few key concepts: • Encryption: Encrypt sensitive 3. Secure credit ahead of data during transmission andtime storToo often, small unauthorized business owners age to prevent access. wait until they need itImplement to secure credit. • Access control: strict This access can cause a lot of unnecessary controls to limit who can stress, or worse. Talkdata to experienced access sensitive and regularly business owners in your area and update these permissions. industry of time knowConhow • Test,ahead monitor andtoaudit: muchduct revenue you’ll need up front. regular security penetration Taketests, a realistic the situation auditslook and at assessments to and plan. Youareas might sufficient identify forhave improvement. cash reserves or a rich uncle who is • Data minimization: Collect only only the a call away, but most small busidata necessary for business ness purposes owners should secure asno much and delete data longer creditneeded. as possible. This isdata thedestrucbest way Implement to betion prepared forand theensure unexpected. policies that data is
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