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White Paper

Data privacy concerns must be addressed within a broad cybersecurity strategy

Casualty|Risk & Analytics|Corporate Risk Tools and Technology|Property
Risk Culture

December 20, 2019

Data is the new currency and data privacy is the key component.

In the early phases of the digital age, consumers often were willing to trade privacy for the convenience and perceived security of internet services.  They would readily provide credit card numbers, their location, email addresses and other information to grab a bargain.

Consumers have lost trust in businesses that take their privacy concerns lightly

This sometimes naïve trade-off has become increasingly problematical as businesses engage in digital “fingerprinting” and other intrusive data-gathering techniques. Consumers have lost trust in businesses that take their privacy concerns lightly. This shift in sentiment will have growing implications for data privacy risk management.

The problem is severe, according to research conducted by the Pew Research Center. Pew found that a staggering 81% of its respondents say that the potential risks of data collection by companies outweigh the benefits, and a similar majority (79%) is concerned about the way the data is being used.

Consumer concerns are playing out in the realm of public policy. The European Union’s General Data Protection Regulation (GDPR) promises tough penalties and fines for companies that violate its regulations, including the consent of citizens for data gathering and processing. California and other states are taking similar actions in the United States.

The threat of litigation and running afoul of regulators pose a significant one-two punch for companies that fail to respect consumer concerns. Companies must move quickly to ensure that their gathering and use of consumer data is handled ethically and with heightened awareness of evolving laws and regulations.

Downloadable Content
Title File Type File Size
Silent Privacy PDF .2 MB
Author

FIP, CIPM, CIPT, CIPP/E, CIPP/US, CIPP/G, ARM, RPLU+

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