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How to use the GDPR to make you more Profitable: The Value of your Privacy Policy

Expede
Jun 26, 2019 8:47:00 AM

Your company's Privacy Policy is a veritable oasis in the legal and ethical minefield of Data Privacy. It's a functional asset which bolsters your profitability.

Data is not the new Oil

The value of Data could easily outstrip the value which oil has enjoyed for centuries. However it cannot be quantified in the same way:

 Data Oil
Infinite resource Finite resource
Does not have globally accepted value Globally accepted value
A border-less,
form-less asset
A palpable, quantifiable product
Can be sold and re-sold for profit   Can be sold and re-sold for profit
Has arbitrary value,
Treated as a spoil of cyber-crime
Subject to price fluctuations
Supply dependent on ability to generate, process and secure Supply dependent on ability to source and process
Ability to generate revenue is not consistent Consistent ability to generate revenue
 Not a literal currency, conversely a cornerstone of crypto-currency  Not a literal currency

 

Even still in 2019, oil's power is dependent on who can extract it from the ground (and other earthly politics!).

Similarly, the power of data is dependent on electricity and technology and how it is sourced, used and stored. However, if there's an issue or breach of data the consequences are expansive.

In the absence of a compliant Privacy Policy, the reputational and financial damage can be irreversible.

 

Why is a Privacy Policy Important

Businesses need a legal basis to processing any personal data. A publicly available privacy policy is a legal requirement under the Australian Notifiable Data Breach Scheme (NDB, Principle 1) and the General Data Protection Regulations (GDPR, Articles 12 - 14).

However, it being a legal requirement isn't a full-bodied answer to the question of why it's important.

A privacy policy is the high-level scope of your information management. It provides guide posts for your processes, a reference point for audits and a requirement in the event of a crisis.

The real answer is that the data your business touches, whether it's client data or company data, is worth money.It has value to all stakeholders involved with your business, to your clients and external forces like the Government or hackers who would poach it.

Your business may not be the Department of Defence, but you do need to be conscious of data security even though you aren't getting hit with tens of thousands of attempted hacks everyday. One is enough to do substantial damage.

How you manage your data is worth money; these processes are particularly valuable to regulatory authorities (the Government, the Office of the Australian Information Commissioner [OAIC] ) and your bottom-line conscious stakeholders - Boards, CEOs and MDs.

Office of the Australian Information Commissioner Notifiable Data Breaches  Scheme 12‑month Insights Report

Ways a Privacy Policy Adds Value:

Your Privacy Policy adds more than just a link to your website:

  • Meets required compliance standards for the NDB and GDPR.
  • Non-compliance costs proliferate - a fine from a regulatory body does not include the further cost of any subsequent law suits, loss of business or remedial payouts.
  • Mitigates harm to your clients in the event of a data breach, and influences your management of potential data incidents.
  • Public, investor and customer trust; demonstrating the value your business places on the information you secure.
  • Customer loyalty; to your current customers it shows proactivity and responsiveness to current customers and builds stakeholder confidence.
  • It can be built into official documents like contracts and terms - outlining how you implement security measures into your new technologies
  • Increased Corporate Social Responsibility - If there have been changes in your service offering or existing technologies, then your privacy policy needs to be reviewed and updated accordingly.

 

Conclusion

A Privacy policy is a single document with incredible value potential.

Having the oversight which a compliant Privacy Policy give you, galvanises your business' top and bottom line.

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