Data security ICT
January 24, 2023

How To Avoid Data Privacy Risks In Business

Data is one of the main assets and value generators for businesses nowadays and operations with it and privacy-related issues have become pivotal for tech businesses. Sometimes implementing data privacy in business might be quite costly, and its direct contribution to the organization’s success is not always visible at first glance. However, gaps in such compliance turn out to be much more expensive than investing in prevention in the long run perspective. 

With this in mind, we would like to provide several tips and advice on how to ensure data privacy compliance in your business. 

  • Get to know the scope and life cycles of the data you are collecting and processing. 

Carefully consider the purposes of collection and duration of data storage and processing. Do not store unnecessary data. Keep track of data flows and transfers and accompany them with relevant documentation (e.g., data processing agreement, data transfer permissions). Limit access to the data inside the organizations as necessary.

  • Consider the technical part of data privacy.

Ensure your technical features are sufficient to protect the data collected and ensure a fast and proper reaction once any incident happens. Identify the vulnerabilities. If you are operating with sensitive data, keep in mind that you must invest in information security solutions that address the potential risks.

  • Define the territorial scope of your data privacy compliance.

For this, you have to consider 3 main aspects:

  1. Your business incorporation jurisdiction
  2. Your business activities location
  3. Your customers’ and end users’ location

Even if you are registered under different governing laws, you cannot ignore the privacy regulations of those countries where your audience is located.

  • Appoint a responsible team/individual.

A dedicated privacy team is a good option. However, there can be less costly alternatives for small or starting businesses. Legal teams should be responsible for monitoring the applicability of relevant legislation on your business and drafting the framework for compliance. Marketing and business development teams can keep connected with the customers and ensure the accessibility and availability of the data to them. Technical teams should keep track of data localization and develop solutions, seamlessly ensuring data privacy. Also, a variety of software offers privacy compliance solutions that meet reasonable financial expectations (like prepared templates, policies, agreements, virtual DPOs, compliance checks, and reports). 

  • Increase awareness inside your organization

Business privacy is an issue that should be carefully considered at all stages of business operations, particularly while discussing future cooperation. Include data protection provisions in agreements to specify the scope of obligations and liability. Ensure the relevant provisions are included in the services agreements with your employees, consultants, prospects, and other contractors. Find out which data security tools will be implemented during the software development process.  

  • Keep in mind data privacy in cooperation with vendors and partners.

Business privacy is an issue that should be carefully considered at all stages of business operations, particularly while discussing future cooperation. Include data protection provisions in agreements to specify the scope of obligations and liability. Ensure the relevant provisions are included in the services agreements with your employees, consultants, prospects, and other contractors. Find out which data security tools will be implemented during the software development process.  

Fortunately, the data compliance challenges that might be faced can be mitigated by understanding and developing a solid data privacy action plan before any issues arise. 

 

Kateryna Manetska

IT Lawyer at Axon 

Axon is a software development company that specializes in creating turnkey software solutions by providing full-cycle software development services of any complexity. We are committed to privacy-oriented approaches in delivering services to our clients. Our technical and legal teams, data analysts, and managers are constantly conducting training and keeping track of the latest changes to deliver solutions that meet current data privacy standards. 

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