Three Questions Startups Need To Ask About Data Privacy

| Author: Tony Imossi (Secretariat) | Filed under: General News
Three Questions Startups Need To Ask About Data Privacy

Modern startups are awash in information, from real-time customer insights via mobile applications to employee data received through online portals.

Founders are constantly making decisions about where to invest, when to hire, how to hire and, most importantly, how to grow their businesses. In the rush to cultivate clients and achieve business scalability, many startups fail to grasp the immense responsibility that comes with gathering and storing data in the current digital environment. The reality of our times is that data capture and storage is precisely where cybercriminals roam. Users are often aware of the risks that come with sharing private information online, and yet are co-opted into doing so in order to participate fully in the cyber economy.

David Thomas is the CEO and Founder of Evident, a unique data security platform that allows businesses to confidently verify individuals without handling sensitive personal data. He notes, “With the current problems associated with data management, startup founders must evaluate how they manage data privacy by asking these three questions.”

1. How can we utilize customer data without assuming risk?

“Data collection and storage creates unavoidable risk. One small processing mistake or error in judgment can lay the groundwork for a costly data breach or regulatory noncompliance, which is highly significant when you are a startup,” Thomas notes.

According to research from IBM and the Ponemon Institute, businesses that suffered breaches last year paid an average of $3.6 million in mitigation costs per instance of data loss. The damage a data breach can have on a new and growing company’s reputation, funding and prospects is truly catastrophic. Unfortunately, no matter how big or small a company may be, nor what controls its teams may have in place, breaches are always a possibility as long as customer data resides on company-controlled servers.

“The key to avoiding assumed risk is to build a foundation and a policy that minimizes the storage of sensitive data on your company’s servers. Of course, a startup does not have the resources or access of a more mature company. And yet, through a partnership with the right data management service, they can eliminate the hazards of handling and managing sensitive personal data. By utilizing a verification solutions’ provider, a startup can confidently deal with verified personal information without exposure to any of the traditional risks involved,” Thomas explains.

Source:  Forbes

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