The exponential growth of data in the age of digital transformation has resulted in companies collecting, using, and storing vast amounts of information. It is projected that the total amount of data created, captured, copied, and consumed globally will increase from 64.2 zettabytes in 2020 to more than 180 zettabytes in 2025, which is enough to fill approximately 10 million DVDs.
As companies become stewards of this massive amount of data, it has become essential for them to have strong data protection and data privacy strategies in place. Data protection refers to the processes, policies, tools, and strategies aimed at securing data availability, integrity, and privacy. In today’s digitally transformed enterprises, data protection is crucial for preventing unauthorized access to data and securing it as it travels across devices.
The importance of data protection has become even more evident due to the expanded attack surface created by remote and hybrid working models, as well as the increasing frequency and severity of cyberattacks. In 2022 alone, the number of data compromises reached 1,802, affecting approximately 422 million people. As the value of data continues to grow and cyberthreats evolve, protecting data has become a key focus for every enterprise.
Data privacy, on the other hand, is a subset of data protection and refers to who has authorized access to data. It dictates how data is collected, handled, and managed by organizations. Industries such as healthcare and financial services, which are highly regulated, must comply with a growing number of data privacy regulations. By 2024, it is predicted that over 75% of the world’s population will have their personal information covered under modern privacy regulations.
Failure to comply with data privacy regulations can have serious consequences for businesses, including data breaches, fines, loss of trust, brand reputation damage, and operational disruptions. Regulators are also stepping up enforcement, cracking down on organizations that do not meet compliance standards. For example, in Ireland, the Data Protection Commission (DPC) concluded 17 Large-Scale inquiries in 2022, resulting in administrative fines exceeding €1 billion. In the United States, banking institutions were fined a total of $1.8 billion for employee use of unsanctioned communication apps.
To ensure data protection and data privacy, organizations should implement best practices. One such practice is to educate employees on cybersecurity best practices so that they understand their role in protecting data. Training employees to recognize phishing scams and other threats, as well as following security protocols to comply with regulations, is crucial.
Another best practice is to encrypt all data, both in transit and at rest, using end-to-end encryption (E2EE). This ensures that sensitive information remains secure, private, and compliant with data protection regulations.
Creating Bring Your Own Device (BYOD) policies is also important in today’s remote and hybrid working environments. These policies should include requiring the use of passwords with multi-factor authentication, using VPNs when working remotely, prohibiting the downloading of unsanctioned apps, and banning the use of unauthorized messaging apps in workflows to minimize BYOD cyber vulnerabilities.
Understanding the nuances of data protection and data privacy and proactively addressing both can help mitigate the threat of data breaches and ensure the success of data-driven enterprises in today’s digital landscape. It is crucial for organizations to prioritize data protection and data privacy as they navigate the challenges and opportunities presented by the era of digital transformation.