Why is data security important?

Explanation

Data security is the practice of protecting digital information from unauthorized access, corruption, or theft throughout its entire lifecycle. It’s a concept that encompasses every aspect of information security from the physical security of hardware and storage devices to administrative and access controls, as well as the logical security of software applications. It also includes organizational policies and procedures.

When properly implemented, robust data security strategies will protect an organization’s information assets against cybercriminal activities, but they also guard against insider threats and human error, which remains among the leading causes of data breaches today. Data security involves deploying tools and technologies that enhance the organization’s visibility into where its critical data resides and how it is used. Ideally, these tools should be able to apply protections like encryption, data masking, and redaction of sensitive files, and should automate reporting to streamline audits and adhering to regulatory requirements.

Business challenges

Digital transformation is profoundly altering every aspect of how today’s businesses operate and compete. The sheer volume of data that enterprises create, manipulate, and store is growing, and drives a greater need for data governance. In addition, computing environments are more complex than they once were, routinely spanning the public cloud, the enterprise data center, and numerous edge devices ranging from Internet of Things (IoT) sensors to robots and remote servers. This complexity creates an expanded attack surface that’s more challenging to monitor and secure.

At the same time, consumer awareness of the importance of data privacy is on the rise. Fueled by increasing public demand for data protection initiatives, multiple new privacy regulations have recently been enacted, including Europe’s General Data Protection Regulation (GDPR) and the California Consumer Protection Act (CCPA). These rules join longstanding data security provisions like the Health Insurance Portability and Accountability Act (HIPAA), protecting electronic health records, and the Sarbanes-Oxley Act (SOX), protecting shareholders in public companies from accounting errors and financial fraud. With maximum fines in the millions of dollars, every enterprise has a strong financial incentive to ensure it maintains compliance.

The business value of data has never been greater than it is today. The loss of trade secrets or intellectual property (IP) can impact future innovations and profitability. So, trustworthiness is increasingly important to consumers, with a full 75% reporting that they will not purchase from companies they don’t trust to protect their data.