Today’s organizations collect data on users at a staggering pace. The resulting insights unlock new ways to create value: people get better search results, healthcare providers deliver more accurate diagnoses and banks make more informed lending decisions. However, data privacy isn’t just about the insights that companies gain from personal information; it also involves individuals’ control over their own data.
The goal of data privacy is to ensure that only authorized users can access sensitive information. This is often achieved through authentication and authorization processes, which require users to verify their identity using something they know (e.g. a password) or something they have (e.g. a security token or biometric) or both. Encryption is another common method of data protection, encoding information so that only authorized individuals can read it.
When it comes to sharing data, people have a right to expect that they will be given the option to “opt-out” of having their data shared with third parties for marketing or non-service-related purposes. They can also have the right to be informed about how their data is used, including by whom and for what purposes, as well as to request rectification of inaccurate or incomplete personal data.
Strong data protection practices can help businesses reduce the risk of costly data breaches that undermine consumer trust and brand reputation. Furthermore, complying with regulations like GDPR, CCPA and others can protect against the steep fines and legal issues that can result from non-compliance.
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