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The potential of data lies in the ability to transform unclassified information into actionable insights driving efficiency, value, and innovation across all business sectors. Organizations that leverage data are able to serve their clients, stakeholders, and customers more efficiently and unleash opportunities to stay ahead of the competitors.
Despite its advantages, data brings along equal if not more challenges. The biggest challenge is to manage data without violating the obligations set forth by the regulatory frameworks like EU-GDPR, HIPAA, PCI-DSS, etc., that emphasize responsible data handling from the collection stage to the stage of disposal. It is important to note that most data protection laws, like EU-GDPR, PIPEDA, POPIA, PDPL, etc., mandate lawful, limited, and justified processing of data, along with granting the right to get their personal information deleted, erased, or destroyed.
The businesses that fail to comply with data protection laws have to pay hefty fines, struggle with operational downtime, lose customers, and face reputational damage. Does this mean that businesses must avoid collecting customer data at all?
Businesses accumulate data to operate in an uninterrupted manner, improve their products & services, and identify the needs of their customers. However, many a time, they unintentionally hoard unclassified information, which creates data security issues and violates the data protection principles of the governing laws. Storing excessive data beyond the retention period not only increases cybersecurity risks and total operational costs but also has high energy consumption, depleting non-renewable energy resources and adding to environmental challenges.
The customers are not against an organization utilizing their data, but what they expect of a business is to not jeopardize the privacy of sensitive information. According to the 2023 Consumer Sentiment Report by Veritas Technologies, 47% of consumers said that they would not buy from a business that intentionally causes environmental damage due to storing unnecessary or unwanted data. So, data is essential for businesses to make informed decisions; however, it must be managed responsibly. Unauthorized, unnecessary, excessive, Redundant, Obsolete, Trivial (ROT) data, or data that violates data protection principles can pose risks and must be erased with proof of data destruction.
The constitution of the Republic of South Africa, via Section 14, grants everyone the right to privacy. This right includes protection of data from unlawful collection, use, retention, and dissemination of personal data. The data protection law of the country, the Protection of Personal Information Act (POPIA), recognizes the significance of this right and aims to regulate the processing of personal data while protecting it. An organization failing to fulfill the conditions of data protection or protect the rights of persons, such as performing erasure or de-identification of the requested information, is an infringer of the Act. The Magistrate’s Court jurisdiction can impose an administrative fine of at most R10 million. The infringers may also be imprisoned for anywhere between 12 months and 10 years.
Organizations must realize the significance of the role of data erasure in maintaining data protection to avoid penalties.
A proactive approach to managing data that includes data collection, handling, storage, and disposal must be adopted by businesses. Organizations must craft clear data management and destruction policies with guidelines on data classification, security controls, data retention, and safeguards for putting data to rest when it has served its purpose. The policy should also mention methods of data destruction based on different device types as per NIST 800-88 Rev 1 guidelines for media sanitization.
Here is how businesses can stay ahead and comply with data protection regulations while avoiding vulnerabilities:
Organizations need to recognize that they are not only responsible for preventing data breaches but also for safeguarding personal data of customers at all times. Data erasure upon a person’s request or due to the data having served its purpose or exceeded its retention period is a preventive, necessary, and mandatory form of data protection that organizations better pay heed to sooner.