Data privacy: don’t risk it, prevent it!*
Regarding International Data Privacy Day on January 28 – a date which also commemorates the anniversary of Convention 108 of 1981, the first international treaty on data privacy – we are reminded of the critical importance of effective management of data-related risks.
In accordance with the General Data Protection Regulation (GDPR), this practice is not just a legal obligation but also an essential component in addressing the complexity of risks in handling personal information. Ranging from technical failures to human errors, these challenges require meticulous attention and preparation from organizations:
- Technical risks: Security failures, including vulnerabilities in software and hardware, pose significant risks with the potential to cause catastrophic data breaches. A recent example is Microsoft, which in 2021 faced vulnerabilities in its Exchange Server software that affected tens of thousands of organizations worldwide. This incident led to unauthorized access to email servers and highlighted the critical need for organizations to keep their systems updated and conduct regular security audits to detect and correct potential vulnerabilities.
- Human risks: The human factor remains one of the biggest challenges in data security. Simple mistakes, like poor password management or accidental sharing of confidential information, can have serious consequences. A 2020 IBM study revealed that 95% of security breaches are due to human errors, underscoring the critical need for ongoing training and awareness of data security for all employees.
- Regulatory risks: Non-compliance with current legislation can lead to severe financial penalties. In 2023, the tech giant Meta was fined 1.2 billion euros by the Irish Data Protection Commission (DPC) for exposing the personal information of millions of users. This regulatory risk requires organizations to be informed and comply with constantly changing data protection laws.
- Reputation Risks: Data breaches affect organizations not only financially; they can also destroy customer trust and damage the brand image in the long term. This was the case with Twitter, now X, which, even before the Musk era, paid a fine of 140 million euros for violating the consent order. Security breaches continued in 2023, when personal information and email addresses of 235 million accounts were disclosed on a “hacking forum”, leading the social network to face hefty fines and advertiser boycotts, devaluation of shares, and a decline in followers.
Given the vastness and complexity of digital risks, it is evident that solutions combining advanced software, expert consulting, and strategic proactivity are crucial for efficient and preventive risk management. Innovative technologies like Generative Artificial Intelligence play a key role today in identifying and providing early warnings of potential threats, enabling organizations to act before risks materialize into crises.
As the saying goes, “An ounce of prevention is worth a pound of cure”. Therefore, investing in prevention and risk management solutions seems to be the key to a safer and more peaceful future for everyone.
*This article was initially published in Link to Leaders.
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