Businesses today collect and have access to a wealth of customer information. Given the sensitive nature of this data, it’s important to keep up with data privacy laws and have procedures in place to ensure compliance is maintained and remains a priority.
It’s also critical to remember that data protection is not only reserved for large companies; just like their larger competitors, small businesses must also ensure that they are in compliance with data privacy regulations.
As experts, the members of Forbes Business Council are familiar with the challenges small business leaders face when it comes to data privacy. Below, 15 of them discuss essential things every small business leader should know about data privacy regulations and offer resources that can be leveraged to effectively secure customer data.
1. No One Is Exempt From Data Privacy Compliance
Small business leaders need to understand that they are not exempt from adhering to compliance and data privacy regulations. Small businesses must protect sensitive customer information in order to build trust with their target audiences. Customers must feel at ease knowing their private information is safe and securely stored when sharing credit card information and other sensitive data with a small business. – Elizabeth A. Douglas, Esq., Douglas Family Law Group
2. Regulation Compliance Should Be A Priority
Small business leaders must ensure they are compliant with data privacy regulations but the fact of the matter is that this may be one of the last things they think about. Working with larger organizations or using compliant softwares will ultimately pass on best practices and increase compliance with data privacy regulations. – Vince Poon, Aratum
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
3. Consult With Experts To Learn Applicable Laws
Data privacy regulations protect individuals’ personal information, including customers and employees. Rules vary by country and state. Business leaders must know what regulations cover their operations and why, so consult with experts who know how laws apply to your business, then enact plans to adhere to them and communicate those plans. A good resource is the International Association of Privacy Professionals. – Udi Merhav, energyOrbit
4. You Should Clearly State Your Intentions To Customers
While working on their privacy policy, every small firm leader should clearly state what kind of data they aim to collect, how it will be used and how long it will be kept. Your privacy policy must also state why the data is being collected, with whom it will be shared and how individuals can exercise their data-related rights. – Raquel Gomes, Stafi
5. Data Privacy Will Become A Requirement To Doing Business
As access for and the use of data becomes more valuable, most of your largest clients will require this as a prerequisite before signing a contract in the next decade. Be proactive now before costs balloon to the extent where failure to win a contract may just be a security checkpoint. – Matthew Wong, Tolunay-Wong Engineers Inc.
6. Agents Can Offer Incredible Feedback And Insight
Creating a culture where employees are valued and heard is key. Customer experience managers can foster relationships with employees by spending time on the production floor talking to and listening to agents’ feedback and understanding the everyday challenges of being an agent. Some of our best customer experience enhancements have come from agent feedback, and we have a formalized process of putting that feedback into action. – Sagar Rajgopal, Ubiquity
7. Data Privacy Includes Clients And Staff Members
Data privacy does not just apply to clients, but also to staff. All businesses should be aware of this. They’ll have to take special care with details like employees’ TIN numbers, medical records and evaluations. For more information on how to handle employee information in accordance with the labor code, small- and mid-size businesses can always visit the Department of Labor’s website. – Myrtle Anne Ramos, PlaceWar
8. It’s Essential To Learn About And Adhere To GDPR Practices
Small business leaders must prioritize data privacy compliance. Often overlooked is the General Data Protection Regulation (GDPR) by the European Union, which applies globally to any business handling EU data. Understanding its principles and implementing necessary measures ensures trust, avoids penalties and demonstrates your commitment to data protection. Be informed and embrace GDPR practices for sustainable success. – Rafael Ortiz, BRAC Consulting Group
9. Heeding Regulations Builds Customer Trust
Small business leaders need to understand the importance of data privacy regulations in building customer trust and avoiding fines. Regulations like the National Institute of Standards and Technology (NIST) Cybersecurity Framework and General Data Protection Regulation (GDPR) are excellent resources for compliance. Keeping up with emerging regulations like California Consumer Privacy Act (CCPA) can also help small businesses avoid compliance issues. Ultimately, prioritizing data privacy and compliance can be a key factor in a business’s success. – Malcolm Allen, Graduate America
10. A Culture Of Respect For Data Privacy Is Important
There are sensitive areas of every business, and data privacy is something we should all take very seriously. This includes protection of intellectual property, financial issues, personnel issues and the like. It’s helpful to create a company culture of respect for data privacy and build in processes to help maintain data privacy regulations. – Dr Gail Lebovic, NasoClenz
11. Storing Only Necessary Information Reduces Risk
One crucial aspect for businesses both large and small is to only store the client data they genuinely need. By assessing and storing only necessary information, business leaders reduce the risk of data breaches and demonstrate a commitment to client privacy. This practice enhances trust and ensures compliance with data privacy regulations. – Mills Menser, Diamond Banc
12. It’s Important To Proactively Address Privacy Issues
Every small business leader should know how important it is to anticipate and address privacy issues before they become a problem. You can do this by ensuring that privacy is automatically embedded into your processes so individuals do not have to take additional steps to protect their personal information. For example, have documents that clearly communicate your privacy practices to individuals. – Barbara Schreihans, Your Tax Coach LLC
13. Appointing A Data Privacy Officer Can Simplify And Ensure Compliance
With the ever-changing landscape of technology in business, data privacy regulations are evolving rapidly to keep up. Knowing these regulations is very important, and it may be in a company’s best interest to contract or hire a data privacy officer. By having one centralized person responsible, new regulations will be met and the business will remain compliant as rules change. – Veena Jetti, Vive Funds
14. Moving Beyond Compliance Offers Future Protection
From my years in cybersecurity, I’ve learned that no matter how unimportant or mundane your data seems, a creative hacker will always find ways to harvest it and monetize it. Because of this, you must go beyond mere compliance and always maintain excellent cyber hygiene. – Yakir Bechler, BWith AI
15. Data Privacy Compliance Is A Continuous Journey
One thing to know would be to continually evaluate what has changed in your business and environment. Keep improving your company’s privacy and personal data practices. Remember that privacy compliance is a journey. So, you are never done but continually evaluating and adapting. – Punit Bhatia, FIT4PRIVACY
Read the full article here