Compliance. Ignoring It Can Cost Your Business.
Businesses are powered by data. Data is the language of our personal and professional interactions. Every transaction you make requires sharing your data with one or more partners. It is the responsibility of those business partners to protect your data and that’s where compliance plays a critical role.
Government agencies around the globe have recognized the increased risk posed to individuals whenever personal data is exchanged and have enacted numerous laws and regulations to protect that information from theft and misuse. In many ways, these government regulations act as your personal insurance policy, designed to hold organizations accountable should a data breach occur.
Achieving compliance means adherence to these regulations and protocols across industries that collect, use, store and manage sensitive data. These compliance protocols are meant to ensure data protection against threats both external and internal to an organization. Several notable laws stand out:
- Europe’s General Data Protection Regulation (GDPR), enacted in 2018 to govern the handling of all sensitive data of EU citizens by organizations.
- The California Consumer Privacy Act (CCPA), inspired by EU action with GDPR, pertains to the personal data of Californians as gathered by any organization.
- The Health Insurance Portability and Accountability Act (HIPAA), which has covered Protected Health Information (PHI) and Electronic Health Records (EHR) since 1996.
Consumers, as a result, have greater control over their personal data than ever before. CCPA, for example, gives people the right to opt-out of a database, compelling an organization to stop selling their personal information. GDPR, on the other hand, requires an opt-in option before a company can use their personal data. These differences touch on the broad range of approaches regulations can take. Over the last several years, data security standards have been enforced, with companies like Google, H&M, and Marriott facing millions in GDPR fines for violations. Businesses find themselves in urgent need of securing the specified types of data and implementing the right processes.
How Can Compliance Failure Impact You?
Failure impacts your reputation and relationship with your customers.
- A study from Varonis discovered 80% of consumers would refrain from supporting a business if their data had been compromised.
- According to the same study, around 52% of consumers would have no problem switching to a competitor if better security was offered.
- Statista reports that in 2021, cyber incidents, data breaches and associated costs were a leading risk for respondents, at 40%.
Beyond the adverse effects on consumer behavior, financial penalties provide a more concrete picture of the high stakes of being out of compliance.
- A 2021 report from IBM and the Ponemon Institute revealed the average cost of a data breach in 2020 was $3.86 million.
- For GDPR, EU authorities can fine organizations up to €20 million (around $20.4 million), or 4% of worldwide turnover for the preceding financial year, whichever is higher.
- The highest fine for a GDPR violation so far was levied against Amazon for €746 million ($847 million).
- CCPA allows the California Attorney General to seek penalties of $2,500-$7,500 per violation.
- The average cost of a data breach in 2021, according to Statista, was $4.24 million, an increase from $3.86 million the previous year.
Failure to achieve compliance clearly comes with risk of penalties. Examining such evidence, the logic behind companies achieving compliance with data security standards is apparent: to avoid the financial and reputational damages that follow a breach, compliance is an absolute necessity.
NetLib Security Is There for the “Assist”
NetLib Security’s data security platform is an important part of the process and takes the guesswork out of meeting the ever-changing compliance landscape. We provide the key components for the standard encryption protection protocol necessary for businesses to meet compliance requirements for PCI, GDPR, HIPAA Omnibus/HiTECH and FIPS 140-2 across the enterprise in physical, virtual and cloud environments
How It Works
Encryptionizer facilitates data protection through transparent encryption of stored data. No additional programming is required and it directly assists with compliance requirements. Simple, efficient out-of-the-box protection with virtually no impact on performance. Encryptionizer can be utilized on any desktop or server database on Windows, and can help secure legacy systems, distributed applications, and connected devices. Our solution can also be deployed against any Windows database management system, including Microsoft SQL Server, MySQL, Oracle, DB2, and PostgreSQL.
Achieving compliance is a business imperative with the risks becoming more severe as data continues to be the most important asset of any organization; it is the new oil. Don’t let your organization fall into the crosshairs. The penalties that follow can have a catastrophic impact to your business.
Request a free evaluation of Encryptionizer here to test its compatibility with your enterprise.
About NetLib Security
NetLib Security has spent the past 20+ years developing a powerful, patented solution that starts by setting up a formidable offense which can be managed from anywhere in the world, across every environment where your data resides: physical, virtual and cloud. Our platform is geared to simplify the process for you while ensuring unprecedented levels of security are in place.
You can simplify your data security needs by utilizing Encryptionizer to satisfy your security requirements quickly, and with confidence. These days it’s essential to protect the safety, integrity and confidentiality of sensitive data. NetLib Security’s unique encryption solutions are an easy and cost effective way to proactively and transparently protect your data.
We also understand budget considerations are a constant concern, which is why we designed an affordable data security platform to protect, manage and defend while enabling the growing areas of compliance. Protecting your data doesn’t have to break the bank, but not protecting it will.
NetLib Security works closely with government agencies, healthcare organizations, small to large enterprises spanning financial services, credit card processors, distributors, and resellers to deliver a flexible data security solution to meet their ever changing needs. For more information or to request a free evaluation visit us at www.netlibsecurity.com.