In today’s interconnected digital environment, sharing information is an essential aspect of business operations. However, data exchange comes with cybersecurity risks, making it important for organizations to take strong measures to protect sensitive information. This installment of the “Mitigating Risk” series focuses on how carefully reviewing and encrypting sensitive data before sharing it with third parties can reduce cyber threats, protect your business, and strengthen customer trust. Let’s explore this important topic in depth.
The importance of safe information sharing
Sharing data with third parties can be both necessary and beneficial for your business, but without the right safeguards in place, it opens the door to potential data breaches and cyber attacks. Ensuring that sensitive data is reviewed, replicated if necessary, and encrypted when shared is a quick step that can significantly reduce exposure to threats.
Describing sensitive information
Sensitive information, also called personally identifiable information (PII) or non-public personal information (NPI), includes data that can uniquely identify, contact, or locate an individual. This type of information, such as Social Security numbers, financial records, or medical information, is highly desired by cybercriminals, making its protection a priority.
Consequences of sharing unsecured information
Failure to protect shared information can have serious consequences, including:
- Data breach: Unauthorized access to sensitive information can lead to identity theft, fraud, and other malicious activities.
- Damage to reputation: A data breach can destroy customer trust and damage your company’s standing, leading to long-term financial and operational consequences.
- Regulatory sanctions: Many industries mandate strict data protection standards, and non-compliance can result in large fines and legal challenges.
Benefits of using secure data practices
Adopting robust data sharing protocols brings tangible benefits:
- Improved data security: Continuously updating and encrypting sensitive data reduces the chances of unauthorized access.
- Compliance with the rules: Complying with industry regulations and compliance guidelines promotes accountability, protecting your business, your clients and their customers. Doing so also helps protect your business from legal consequences.
- Brand reputation management: Showing commitment to protecting client information builds trust and helps protect your brand’s reputation.
- Strong customer relationships: Clients are more likely to work with you if you can demonstrate safe data sharing practices. Providing a secure environment for sensitive information improves customer relationships and loyalty.
- Good performance: Clear data sharing policies help streamline processes, reduce risk and promote organizational resilience.
Steps to implement safe data sharing practices
To protect your organization’s information sharing practices, consider these steps that can be taken:
- Find sensitive data: Conduct thorough research to determine what data qualifies as sensitive and needs to be protected.
- Review data before sharing: Use strong protocols to review outgoing data, reorganize or remove sensitive information when needed.
- Encrypt sensitive information: Use strong encryption tools to protect sensitive data during transfer, ensuring it remains secure from unauthorized access.
- Train your team: Regularly educate employees on the importance of secure data sharing practices and their role in protecting sensitive information.
Creating a culture of safety
Building a culture that prioritizes cyber security involves more than implementing technical safeguards. It requires ongoing collaboration between teams, regular training sessions, and promoting a mindset where safety is everyone’s responsibility.
Final thoughts
In an era of increasing digital threats, safe data sharing practices are essential to reducing cyber security risks. By reviewing and encrypting sensitive information, your organization not only protects itself from potential breaches but also demonstrates a commitment to ethical and responsible data management. These measures not only ensure compliance with regulatory standards but also strengthen client trust, creating a competitive advantage.
By taking immediate steps today to improve your information sharing processes, you can better protect your business, protect your reputation, and strengthen your relationships with your customers in an increasingly threat environment.
Bruce Phillips is the Senior Vice President and Chief Information Security Officer at MyHome.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.
To contact the editor responsible for this piece: [email protected].
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