Understanding the Fundamentals of Data Compliance

Data has found its roots deep within the dynamic business landscape of today’s world. Every other business of today works based on data, which are extracted from different modules as well as largely from their customers. Therefore, in such cases, data compliance has an important role to play without which there will be a massacre.

Cyber threats, cyber-attacks, and many other such unprecedented threats can be seen due to which to maintain the data integrity and safety or privacy of consumers, data compliance is a must nowadays. In this article, we shall be discussing the fundamentals of data compliance.

What is data compliance?

Data compliance means the following of certain rules and regulations when working with data as part of the business process by certain authorities who make sure that the different businesses or organizations are not misusing data in any possible way or they have a chance of getting exploited by attacks, thus increasing their security levels regarding data.

There are several methods and practices which have been established and are considered as the modules of data compliance. Thus, data compliance is very much necessary to maintain data integrity, safety, privacy, and availability instead of data misuse.

Key aspects of data compliance regulations

The below pointers shall talk about the key aspects of data compliance regulations and before starting these are some of the main aspects covered:

• Data protection and privacy –

Data protection and privacy are the two main aspects on which data compliance is based upon. It makes sure that the data that is being stored is kept in safe places and maintains some guidelines issued by industry regulations such as the General Data Protection Regulation (GDPR), Health Insurance Portability and Accountability Act (HIPPA), and many more. These regulatory frameworks have observed keenly the data being used, stored, and processed by different businesses.

• Data security –

Although the concept of data security is a bit different than that of data compliance it falls in the bigger picture of data compliance itself. Data security is a part of data compliance because it makes sure that the data being extracted from consumers and other places are kept safe and stored in the proper place making them immune to cyber-attacks or cyber threats. Any type of unauthorized access is prohibited as data is an extremely sensitive thing and if it falls into the wrong hands can be exploited in several ways.

• Data accuracy –

Data accuracy is another aspect of data compliance as it clearly states that the data being stored needs to be precise and that there is no tampering or editing of it, which could result in a lot of difficulties otherwise for both businesses and their consumers.

• Data disposal –

Data disposal is another important part of data compliance and based on the industry data regulations as mentioned, data disposal can be done either by clearing or purging. Data can also be retained but under certain retention periods only as mentioned in the compliance acts.

Benefits of Data compliance

Data compliance regulations can result in several benefits for both the businesses and the consumers. It is especially helpful for businesses as their daily operations are based out of it and any wrongdoings can heavily affect their revenue flow and reputation. The below pointers talk about some of the benefits of data compliance:

• Enhanced security –

The first and foremost benefit of data compliance is that of enhanced data security. These compliance methods reduce the risk of data breaches or data being stolen by unknown entities.

• Efficient management –

Efficient data management is another factor which gets benefitted due to data compliance as data storage places and their management are highly scrutinized by regulations and this helps in increasing efficiency and accuracy as well.

• Legal difficulties –

Businesses or organizations if they do not pay heed to the regulations established regarding data compliance, may result in facing of legal situations and cases sometimes leading to penalties and charges leading to imprisonment as well. Therefore, data compliance needs to be strictly followed.

• Competitive advantage –

Abiding by the data compliance rules and regulations often offers businesses a competitive advantage by giving them an edge over others in this extremely competitive market, thereby resulting in constant profitability and growth on a global scale.

• Reputation –

Following all the data compliance regulations results in setting a high reputation in the industry as well as among the target audience. It also instills a sense of trust in the minds of the existing customers that their data is in safe hands and no chance of data misuse or breaches is possible.

Data compliance is a must for companies as it benefits companies as well as helps in creating and maintaining their reputation as data compliance often results in protecting and maintaining data integrity and privacy.