Data privacy is a guideline for how data should be collected or handled, based on its sensitivity and importance. Data privacy is typically applied to personal health information (PHI) and personally identifiable information (PII). This includes financial information, medical records, social security or ID numbers, names, birthdates, and contact information.
Data privacy concerns apply to all sensitive information that organizations handle, including that of customers, shareholders, and employees. Often, this information plays a vital role in business operations, development, and finances.
Data privacy helps ensure that sensitive data is only accessible to approved parties. It prevents criminals from being able to maliciously use data and helps ensure that organizations meet regulatory requirements.
What Are Data Protection Regulations?
Data protection regulations govern how certain data types are collected, transmitted, and used. Personal data includes various types of information, including names, photos, email addresses, bank account details, IP addresses of personal computers, and biometric data.
Data protection and privacy regulations vary between countries, states, and industries. For example, China has created a data privacy law that went into effect on June 1, 2017, and the European Union’s (EU) General Data Protection Regulation (GDPR) went into effect during 2018. Non-compliance may result in reputation damages and monetary fines, depending on the violation as instructed by each law and governing entity.
Compliance with one set of regulations does not guarantee compliance with all laws. Additionally, each law contains numerous clauses that may apply to one case but not another, and all regulations are subject to changes. This level of complexity makes it difficult to implement compliance consistently and appropriately.
