Protecting Sensitive Data: Essential Practices for Businesses

In today’s interconnected digital landscape, information sharing is a fundamental aspect of business operations. However, data sharing poses inherent cybersecurity risks, making it critical for organizations to take robust measures to protect sensitive information. This part of the ‘Reducing Risk’ series focuses on how careful review and encryption of sensitive data before sharing it with external parties can mitigate cyber threats, protect your business and build customer trust. Let’s explore this vital topic in depth.

The importance of sharing information securely

Sharing data with third parties can be both necessary and beneficial to 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, redacted if necessary, and encrypted when shared is a proactive step that can significantly reduce exposure to threats.

Defining sensitive information

Sensitive information, also called personally identifiable information (PII) or non-public personal information (NPI), includes data that uniquely identifies, contacts, or locates an individual. This type of information, such as social security numbers, financial data or medical data, is highly sought after by cybercriminals, making protecting it a top priority.

The consequences of unsecured information sharing

Failure to secure shared information can have serious consequences, including:

• Data leaks: Unauthorized access to sensitive information can lead to identity theft, fraud, and other malicious activities.
• Reputational damage: A data breach can erode customer trust and damage your company’s reputation, leading to long-term financial and operational consequences.
• Regulatory fines: Many industries mandate strict data protection standards, and non-compliance can result in significant fines and legal challenges.

Benefits of implementing secure data practices

Applying strict data sharing protocols delivers tangible benefits:

• Enhanced data security: Proactively reviewing and encrypting sensitive data minimizes the chance of unauthorized access.
• Regulatory compliance: Adhering to industry regulations and compliance guidelines promotes accountability and protects your business, your customers and their customers. Doing this can also protect your business from legal consequences.
• Brand reputation management: Demonstrating a commitment to protecting customer information builds trust and helps protect your brand’s reputation.
• Stronger customer relationships: Customers are more likely to work with you if you can demonstrate that you share data securely. Providing a secure environment for sensitive information improves relationships and customer loyalty.
• Operational efficiency: Clear data sharing policies help streamline processes, reduce risk and promote organizational resilience.

Steps to implement secure data sharing practices

To secure your organization’s information sharing processes, consider the following steps:

• Identify sensitive data: Conduct a thorough audit to determine which data qualifies as sensitive and requires protection.
• Check data before sharing it: Implement strict protocols to review outgoing data and redact or remove sensitive information as necessary.
• Encrypt sensitive information: Use robust encryption tools to protect sensitive data in transit so it remains safe 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 cybersecurity involves more than implementing technical security measures. It requires constant 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, secure data sharing practices are essential to reducing cybersecurity risks. By reviewing and encrypting sensitive information, your organization not only protects itself from potential breaches, but also demonstrates its commitment to ethical and responsible data processing. These measures not only ensure that regulatory standards are met, but also strengthen customer confidence, creating a competitive advantage.

By taking proactive steps today to improve your information sharing processes, you can better protect your business and reputation and strengthen customer relationships in an increasingly complex threat landscape.

Bruce Phillips is Senior Vice President and Chief Information Security Officer for MyHome.

This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners.

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