It's imperative that finance functions develop strategies and plans for data privacy management that adhere to the new regulations. Organizations must be aware of their obligations and review what data they are collecting and using, including how it is stored and accessed. In this article, we will explore both how and why finance functions should realign their operations for data privacy.
Why is Data Privacy Important?
Data privacy is a critical component of business security, as well as customer trust. Organizations have an ethical obligation to protect their customers’ data, regardless of whether it’s personal, financial, or healthcare information. Customers expect their data to be secure and protected from misuse.
In addition to this, new regulations have been put into place to ensure that organizations comply with data privacy standards. Organizations must be aware of their obligations and take measures to ensure that they remain compliant. Failure to do so can result in hefty fines and other penalties. Under Saudi Arabia's Personal Data Protection Law, businesses can be fined up to 3 million Saudi Riyals if they fail to comply with data privacy regulations.
In some cases, those in breach of the law can even be subject to a prison sentence of up to two years. This makes data privacy not only an ethical consideration but also a legal one and a matter of business survival.
How Can Finance Functions Realign for Data Privacy?
Finance functions must take robust action when it comes to data privacy management. There are several clear steps that can be taken to ensure compliance with data privacy regulations.
1) Appoint a Chief Data Officer (CDO) to oversee data privacy management. Organizations should assign a dedicated individual who is responsible for managing data privacy and enforcing compliance with applicable regulations. This is not only a legal requirement but it's also the first step in creating a culture of data privacy within the organization.
2) Review existing policies and procedures related to data privacy. Organizations should review their current data privacy policies and procedures to ensure that they are compliant with the applicable regulations. This is a necessary step to identify any areas of non-compliance and ensure that all necessary steps are taken to achieve compliance.
3) Create a data privacy plan and keep it up to date. Organizations should create a comprehensive data privacy plan and make sure that it is kept up to date with any changes in legislation. A detailed plan will help to ensure that everyone in the organization is aware of their obligations and responsibilities when it comes to data privacy.
4) Invest in secure technology solutions. With cyber security threats increasing, organizations should invest in secure technology solutions to protect their data. This includes encrypting data and implementing multi-factor authentication for access. These solutions should be regularly monitored and updated to ensure they remain effective.
5) Educate staff on data privacy regulations. Getting every staff member on board with data privacy is essential for compliance. Organizations should invest in training and education initiatives to ensure that everyone understands the importance of data privacy as well as the applicable regulations.
Data Privacy Compliance is Essential for Business Success
Data privacy is an issue that organizations must take seriously. By realigning their operations to comply with data privacy regulations, finance functions can ensure that their organizations remain compliant and secure – thereby protecting their reputation and reducing the risk of hefty fines.
With data becoming ever more valuable and cyber security threats on the rise, data privacy compliance is set to become an even more critical issue in the future. Finance functions must take action now to ensure that they are well-prepared for any potential changes in legislation.