Organisations are legally obliged to protect customer and user data from being lost or stolen and ending up in the wrong hands. Data security is key to preventing the reputational and financial risks that will undoubtedly accompany a data breach. A high-profile hack or loss of data can result in customers losing trust in an organisation and taking their business elsewhere. Other examples of the potential harm caused by a lapse in data security include: stolen IP, identity fraud, fake applications for tax credit, or exposure of the addresses of service personnel, police and prison officers.
And then there’s the issue of compliance, which has had a significant impact on data security, both in terms of how it is safeguarded and also in terms of how it is used and when it must be destroyed. Consider the General Data Protection Regulation (GDPR), under which individuals have the right to access and receive a copy of their personal data, known as a subject access request (SAR). If an organisation fails to respond to a SAR, there will likely be ramifications, usually in the form of a financial penalty.
Ultimately, data security is important because not only is it a legal requirement in itself, but it supports good data governance, and helps demonstrate an organisation’s compliance with relevant legislation and regulations.