Why every business needs a data security strategy

Your sensitive data is under threat. Data breaches frequently result in unauthorized access to confidential customer or employee financial and personal information. Attackers use credentials they have obtained from any number of dodgy ways to get access to a company’s network, moving laterally to extract valuable sensitive information.

On the dark web, sensitive data is exchanged at a premium, with personally identifiable information, credit card information, and health data fetching a hefty price. The practice of protecting digital information throughout its lifecycle to prevent data loss, manipulation and unauthorized access is known as data security.

Companies use a range of technologies and methods to improve visibility over the access and use of enterprise data. In addition to visibility, protection methods such as data masking, encryption, and redaction of sensitive information help to ensure security.

Consequences of poor data security

Financial loss

This is usually the outcome that executives are considering because it is the most common outcome of data loss. The scale of a corporation is irrelevant to scammers, who are solely looking to profit. IBM estimates that UK companies spent about £3 million on data breach recovery in 2020. Businesses on average lose £8,000 as a result of a data breach.

Reputation damage

A security incident or data breach can damage a company’s reputation and lead to a drop in sales and business. Setting data security as a top priority and being transparent to customers about the steps you have taken to safeguard their data might help you prevent this. The primary objective is to ensure that the business always feels safe and secure.  

Compliance violations

Companies that handle sensitive data are frequently subject to stringent data protection laws like the GDPR and HIPAA. Breaking these rules could lead to legal action and heavy fines. Achieving compliance requires putting in place the proper policies and processes and staying current with new legislation. 

Business disruption

A security incident or data breach may cause a company’s operations to be disrupted, potentially leading to lost revenue and productivity. A thorough disaster recovery plan that includes regular backups and protocols for handling security events is necessary to avoid this.  

Key components of a data security strategy

The following are the essential elements that make up a thorough data security strategy:

1. Data classification: To begin, group your data according to its criticality and sensitivity. This classification will assist you in allocating resources and implementing security measures where they are most needed because no two pieces of data are alike.  
2. Access control: Strict access restrictions should be put in place to guarantee that only people with permission can access confidential data. Role-based access, user authentication, ongoing data inventory and user activity monitoring are all included in this. 
3. Encryption: The extra degree of security provided by data encryption makes it very difficult for unauthorized parties to decode intercepted data, both while it’s in transit and when it’s at rest.  
4. Awareness and security training: First and foremost, your employees are your best defense against breaches. Educate your employees on potential dangers, best practices, and their vital role in preserving data security by offering them thorough security training.
5. Consistent updates and testing: Data security is an ever-changing issue, thus your strategy needs to adapt to the new threats. Regularly revise your plan to capitalize on emerging technologies and best practices. Regularly testing and simulating your approach can also help you identify any weaknesses. 

Benefits of implementing a data security strategy

Protects your information 

Sensitive data is protected and kept out of the wrong hands by embracing a data security-focused attitude and putting the required technology in place. Sensitive data includes things like client payment details, medical records in the case of the healthcare industry, and personal identification information. This information is kept safe and secure using a data security plan that is customized to your business’s specific requirements.  

Maintain better reputation

When you do business with customers, they entrust you with their sensitive information. A data security plan allows you to give them the security they require to maintain a great reputation within the business community at large, partners, and clients.

Reduces support and development costs

Implementing data security measures early in the development process can help you avoid later spending costly resources on troubleshooting code errors or designing and deploying patches.

Enhancing operational efficiency

Secure systems are less likely to experience outages due to invasions or attacks. This stability ensures that employees can focus on their work without being distracted and for businesses to function efficiently. Simplified processes and secure data management strategies also make it easier to retrieve and use information efficiently. 

Mitigate insider threats

Not all threats come from outside sources. Insider threats can be equally dangerous whether they are used intentionally or accidentally. Data security techniques including monitoring, role-based access controls, and zero-trust principles reduce the danger of internal cyber breaches by granting authorized personnel access to critical information. Eighty percent of workplace accidents are still caused by human mistake, which also plays a significant role in data breaches. This highlights the need for better staff education and awareness. Examples of such errors include sending private information to the wrong person or misconfiguring security settings. 

Data security in the modern age

It is impossible to exaggerate how crucial data security is in the modern digital environment. Companies need to be exploring modern techniques, tools and practices, including data erasure, data encryption, data resiliency, and data masking, to avoid breaches and preserve business continuity. Businesses that understand the different aspects of data security, implement a sound plan, and buy data security software can protect data, follow regulations, and win over their customers.