Why Privacy Is a Business Issue
Privacy practices are a key to good governance and accountability. As business systems and processes become increasingly complex and sophisticated, organizations are collecting growing amounts of personal information. This results in personal information becoming vulnerable to numerous risks for e.g. loss, misuse, unauthorized access (hackers), and unauthorized disclosure (disgruntled employees, hackers). Such risks, in turn, increase concerns for organizations, governments, and the public in general, about the value of personal information and the means and processes to ensure its intended legal use.
Organizations are walking a tightrope when they collect and use customers’ personal information. Governments are trying to protect the public interest and simultaneously manage the trove of personal information gathered from its’ citizens. Consumers are becoming increasingly concerned about their personal information, and most believe that they are not in control of it anymore. This leads to the public constantly worrying about identity theft and inappropriate access to personal information, especially if its about their financial and medical records, or about children.
Individuals now demand that their privacy be respected, and their personal information protected, by the organizations with which they do business. This means that all businesses need to effectively address privacy as a risk management issue. Provided below are specific risks to an organization when they have inadequate or lax privacy policies and processes:
All of the arguments above highlight how privacy risks impact businesses in a very fundamental manner. Privacy has become a major inflection point for businesses, around the effective management of which, lie its future. It can be said simply that good privacy, is in fact, just good business.
Organizations are walking a tightrope when they collect and use customers’ personal information. Governments are trying to protect the public interest and simultaneously manage the trove of personal information gathered from its’ citizens. Consumers are becoming increasingly concerned about their personal information, and most believe that they are not in control of it anymore. This leads to the public constantly worrying about identity theft and inappropriate access to personal information, especially if its about their financial and medical records, or about children.
Individuals now demand that their privacy be respected, and their personal information protected, by the organizations with which they do business. This means that all businesses need to effectively address privacy as a risk management issue. Provided below are specific risks to an organization when they have inadequate or lax privacy policies and processes:
- The organization’s reputation, brand, or business relationships can become irreparably damaged
- The organization faces legal liability, and industry or regulatory sanctions
- It is suspected of deceptive business practices
- It breeds distrust with customer and / or employees
- The organization loses business impacting revenue and market share
All of the arguments above highlight how privacy risks impact businesses in a very fundamental manner. Privacy has become a major inflection point for businesses, around the effective management of which, lie its future. It can be said simply that good privacy, is in fact, just good business.
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