In recent years, many global businesses have fallen victim to hacks and been robbed of sensitive information about their customers. The impact of these incidents has the potential to negatively affect the targeted businesses in a variety of ways.
It is therefore more relevant than ever to wonder whether information security should be a critical issue for companies.
Here are some lines of thought that indicate it should.
Information a company possesses can be a competitive advantage
Anyone who runs a business also owns any information about the business itself. This includes information about the products or services it offers, business and financial plans, as well as information about the buyers of the goods or services.
Some of this business data is used for risk mitigation, revenue optimization and overall improvement of an organization’s core business. By the mere fact that this data can generate future benefits, it becomes an asset that must be protected from the competition. Any information that can be used to grow a business should therefore remain secure and confidential.
A sensitive data leak can destroy a company’s reputation
Most companies aim to sell goods or services. Customers transmit sensitive information to them, even with a simple one-time purchase using a credit card. Of course, no serious company would intentionally abuse personal information about its customers. However, a simple unintentional data leak could easily affect their reputation.
Personal information leaks and security breaches pose a real threat to businesses of all sizes. Moreover, when they happen, there is more than just money at stake. Imperfect data security puts all your customers at risk, and therefore the future of the business as well. Indeed, a good reputation takes years to build while it can be destroyed in just a few seconds.
More and more governments are putting laws in place to ensure information security
In addition to negatively affecting a company’s reputation, a leak of sensitive customer information can also have legal and financial ramifications. Many governments now have legislation that holds organizations accountable for the personal data they possess. Those found guilty of negligence at this level can face severe penalties.
The European Union’s GDPR (General Data Protection Regulation) is a good example. Employed in Europe since 2018, its mission is “to give citizens control over their personal data, while simplifying the regulatory environment for businesses”.
Get the best advice on data security
For a company, ensuring perfect data security is no easy goal. However, compared to the undesirable consequences of an information leak, it is certainly worth considering information security as an important issue and securing your business data.