Data privacy has become a hot topic as more startups collect and store personal information. This has led to concerns about how startups use data that comply with the law and whether or not they’re using secure IT systems.
Unfortunately, many founders of startups often don’t prioritize privacy accountability. But the truth is, startups have just as much – if not more – to lose regarding data breaches and privacy violations.
Privacy Accountability is the responsibility for protecting personal information by implementing a privacy management program in an organization. It includes demonstrating that the organization is complying with the requirements of privacy laws. It also means that the organization has policies and procedures to show they’re proactive about protecting personal data.
Privacy accountability is essential for startups for several reasons.
First, startups can demonstrate their compliance with privacy laws.
Privacy accountability helps startups ensure they meet their customers’ privacy and data protection obligations. As startups continue to harvest and store vast troves of customer data, they must ensure customer data is adequately protected by preventing unauthorized access and use. Startups should ensure that their privacy and cookie consent notices are updated with ever-evolving privacy laws.
Startups can operationalize privacy accountability to show that they are good corporate citizens. When startups take responsibility for handling customer data, they show that they are committed to protecting the privacy rights of their customers.
Startups should also be able to provide evidence that they have implemented privacy by design principles into their products and services. Privacy accountability matters because it helps create a culture of privacy and responsibility within a startup.
Second, startups can reduce the risk of a data breach.
Startups are particularly vulnerable to data breaches due to their lack of experience and resources. Privacy accountability means putting procedures in place to ensure that employees are trained in privacy best practices to help prevent data breaches. If a data breach occurs, privacy accountability means that the startup will have a plan to quickly address the issue. By taking these steps, startups can help protect their customers’ data and reduce the chances of a costly and reputation-damaging data breach.
According to the 2017 Verizon Data Breach Investigations Report, over 60 percent of data breaches were caused by external actors, while only 38 percent were caused by internal actors. This means that startups are more likely to be targeted by external threats, such as hackers and cybercriminals.
To reduce the risk of a data breach, startups should consider implementing a security program that includes data encryption, user authentication, and access control. Additionally, startups should train their employees on security best practices and educate them on the signs of a potential attack. By taking these measures, startups can help protect their data and reduce the chances of a damaging cybersecurity breach.
Third, startups can build trust with their customers.
Startups need to understand that customer trust is essential. When entrusting their personal information to a business, people want to know that their data will be safe. For startups, this can be a challenge. They often don’t have the same resources or established reputation as larger businesses. As a result, they have to work harder to build customer trust.
Privacy accountability means that startups are transparent about how data is collected and used. The key for startups is to be proactive about privacy. They should build strong privacy protections into their products and services. And they should make sure their customers know about these protections.
Startups must operationalize privacy accountability to show that they respect the privacy rights of their customers. By being open and transparent about their data practices, startups build trust with their customers, which is essential for any business relationship. By taking these steps, startups can create a foundation of trust that will help them compete against larger businesses.
How Startups Can Operationalize Privacy Accountability
Operationalizing privacy accountability can seem daunting, but it is essential to the long-term success of any startup. A startup is always looking for ways to differentiate itself from the competition.
To maintain compliance with privacy laws and protect customer data, a startup needs to operationalize privacy accountability through a privacy management program.
What is a Privacy Management Program
A privacy management program is a framework that allows an organization to meet legal compliance requirements and customer expectations while reducing the risk of data breaches. This includes integrating privacy policies into business processes and automating reporting and monitoring.
A privacy management program helps organizations efficiently and effectively address the full range of challenges in protecting customer information. This includes reconciling overlapping regulations, which can often create confusion about who should be handling what type of information within the organization or how such information should be addressed. When a startup implements a privacy management program, it ensures that its customer data is consistently protected while allowing it to operate efficiently.
Benefits of a Privacy Management Program
A Privacy Management Program will help a startup to:
- Develop and implement policies and procedures that are compliant with privacy laws.
Without these policies and procedures, a startup risks being fined or even shut down by privacy regulators.
- Monitor and report on compliance with those policies and procedures.
This allows a startup to identify areas where they are not in compliance and take steps to rectify the situation.
- Educate employees on their obligations under the policies and procedures.
They need to know what they can and cannot do with personal information. They also need to know how to report any potential privacy breaches.
- Ensure that the startup has appropriate safeguards to protect the personal information it collects, uses, or discloses.
This may include implementing technical and organizational measures to protect data from unauthorized access, use, or disclosure.
Privacy accountability is essential for startups. Why? Because to achieve long-term success, startups need to comply with the law and build trust with their customers.
Through a Privacy Management Program, startups can demonstrate compliance with privacy laws, reduce the risk of data breaches, and build trust with their customers.
Implementing a Privacy Management Program may seem overwhelming, but it is crucial to the long-term success of any startup. Get started on implementing a program today!