Do you need to create a data policy?
A data policy is a critical part of any business, and it lets customers know that you care about the privacy & security of their information and that you want to be up-front about how data is collected, used, and shared.
It is important to have a clear set of guidelines that dictate how an organization collects, uses, and shares data. Without this policy in place, your business could be at risk of violating client trust or even facing legal penalties.
In this article, we’ll discuss the benefits of having a data policy, key elements to include and best practices for one that meets the needs of your business and protects the privacy of your customers.
5 Key Elements of an Effective Data Protection Policy
A data protection policy protects your business from facing possible risks and liabilities, such as significant financial penalties or damage to its reputation, in the event of a data breach.
In other words, any organization that uses data needs this policy in place. The policy should be based on the specific needs of your organization, considering what kind of data you collect and how it’s used. You’ll also want to think about how long you keep data on hand.
Here are the five primary elements to consider when crafting a data protection or retention policy.
1. Be clear about what type of data you collect and why.
Your data protection policy should make it clear what type of customer or employee data you collect and why.
This includes any personally identifiable information (PII), such as names, addresses, social security numbers, and credit card numbers. You should also include a description of the purpose for collecting this information—for example, to fulfill an order or provide customer service.
2. Define who has access to the data.
It’s important to clearly define who has access to customers’ or employee’s information within your organization.
This includes specifying which employees are authorized to access the data and for what purpose. For example, you may give customer service reps access to PII in order to resolve customer issues but not allow sales reps to have direct access to this type of information.
3. Establish a retention period for the data.
You will also need to establish a retention period for the information you collect—that is, how long you will keep the data on file. Once the retention period expires, it should be deleted from your systems in a secure manner.
For example, you may decide to retain customer PII for seven years after the customer has ceased doing business with your company.
4. Describe how the data will be protected.
It’s important to describe how the data collected will be protected both physically and electronically. This includes things like storing the data in a secure location (e.g., a locked filing cabinet) and encrypting it when it’s transmitted electronically (e.g., over email).
You should also include a statement about how often your security measures will be reviewed and updated.
5. Outline what will happen in the event of a breach.
Your data protection policy should include a section on what will happen in the event of a breach—that is, if customer or employee data is exposed through no fault of your own (e.g., by hackers).
This should include steps that will be taken to mitigate the damage (e.g, notifying affected individuals) as well as any disciplinary actions that may be taken against employees who violate company policy (e.g, accessing PII without authorization).
FAQ
What is a data use policy?
A data use policy is the set of rules that dictate how an organization collects, uses, and retains data. Data retention policies define how long data can be kept, while retention periods establish when data should be deleted.
The volume of data an organization has can also play a role in the data use policy but there are a few key things to keep in mind when it comes to data use policies.
- First, data retention policies will dictate how long data can be kept. This is important to consider, as some data may need to be kept for legal or regulatory reasons.
- Second, retention periods establish when data should be deleted, as some data may only need to be kept for a certain amount of time.
Organizations should consider how much data they have and whether or not they have the resources to keep it all. There are a few key things to keep in mind when it comes to data use policies, but ultimately it is up to the organization to decide what its policy is and how it will implement it.
Why do we need a data policy?
A data policy is a set of rules that dictate how an organization handles the data it collects, stores, and uses. A good data policy helps to ensure that data is used responsibly and ethically and that personal information is protected.
There are many different types of data policies, depending on the type of data being collected and used. For example, a healthcare organization might have a policy governing the use of patient health information, while a company that accepts credit card payments would have a policy governing the handling of payment card data.
The General Data Protection Regulation (GDPR) is a set of regulations that member states of the European Union must implement in order to protect the personal data of EU citizens. The GDPR requires organizations to have a data retention policy in place that dictates how long personal data must be kept before it is destroyed.
Organizations should have a data policy in place that outlines how the organization will collect, store, use, and destroy data. This policy should be reviewed and updated on a regular basis to ensure that it meets the ever-changing needs of the organization.
How do you create a data protection policy?
Creating a data protection policy is an important step for any organization that collects, uses, or stores customer data. Having such a policy offers benefits like improved security, increased transparency and greater customer trust:
Below are key elements to include in an effective data protection policy document, which outlines an organization’s procedures for collecting, using, and storing data.
- Definitions of important terms
- The types of data collected
- How the data is used
- How the data is stored
- Who has access to the data
- The retention period for the data
- How the data will be disposed of
- Compliance with applicable laws and regulations
- Contact information for questions or concerns about the policy
By including these key elements in the policy and following best practices, you can create a strong data protection policy that will improve security, increase transparency, and build customer trust.
How long should data be retained?
There is no definitive answer to how long data should be retained, as requirements vary depending on the type of data, the sensitivity of the information, and applicable laws and regulations. However, it is generally best practice to retain data for only as long as it is needed and to have a clear policy in place specifying how long different types of data will be kept.
When developing a data retention policy, organizations should consider their business needs and the requirements of any applicable laws and regulations.
They should also take into account the sensitivity of the personal data they are collecting and storing. For example, data that could potentially be used to identify individuals (such as name, address, or date of birth) should be given special consideration.
Organizations should periodically review their data retention policy to ensure that it continues to meet their business needs and legal requirements. They should also update the policy as new technologies or business practices emerge. The timeframe for how long businesses should keep data varies depending on the country and location of business.
As an example, in Canada, it is suggested that data be kept for a minimum of six months to one year. These guidelines are based on best practices and legal requirements here in Canada. You should consult with local counsel to determine their specific data retention requirements.
Some businesses may choose to keep data for longer periods of time, depending on their needs and legal requirements. It is important to note that data retention policies need to be clearly documented and communicated to all employees.
Why do companies have data retention policies?
There are a number of reasons why companies may have data retention policies in place.
- One reason is to ensure compliance with various laws and regulations that govern the handling of personal data.
- Another reason may be to help manage and protect the company’s valuable data assets.
- A third reason may be to establish best practices for managing data so that it is accurate and complete.
Data retention policies typically specify how long certain types of data must be kept before it can be deleted. This may be required by law or regulation, or it may be a best practice that the company has adopted. In some cases, data may need to be kept indefinitely for business or historical reasons.
Best practices for data management vary depending on the type of data involved. For example, sensitive personal data may require special protections, such as encrypting the data or storing it in a secure location. Financial data may need to be reconciled on a regular basis to ensure accuracy.
Indefinite retention may be required for some types of data, such as tax records or records of legal proceedings. In other cases, data may need to be kept for a certain number of years, such as employee records or customer purchase history.
Wrapping Up
Crafting an effective data protection policy is an essential part of any organization or business process when customer or employee information is collected.
Personal data is any information that can be used to identify an individual. This includes things like name, address, date of birth, Social Security number, and so on. Companies must take care to protect this type of data and ensure that it is only used for legitimate business purposes.
There are a number of laws and regulations that govern the handling of personal data, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States. These laws place strict requirements on how personal data must be collected, used, and protected. Failure to comply with these laws can result in hefty fines.
Data management is the process of acquiring, storing, organizing, and using data. It includes both the physical and logical aspects of managing data. Good data management helps ensure that data is available when it is needed and that it is accurate and complete.
Compliance refers to the process of ensuring that an organization adheres to all applicable laws and regulations. This includes things like ensuring that personal data is properly protected and that records are accurately maintained.
Data retention policies typically specify how long certain types of data must be kept before it can be deleted. This may be required by law or regulation, or it may be a best practice that the company has adopted. In some cases, data may need to be kept indefinitely for business or historical reasons.
By taking into account the type of data collected, how it’s used, and how long it will be retained, you can minimize the risk of exposure in the event of a breach. When you clearly communicate your policies and procedures to employees, you can help ensure that everyone in your organization is on the same page when it comes to safeguarding sensitive information.