What is Data Privacy and Why is it Important?
Data privacy, or data protection, is the relationship between the collection and dissemination of data, technology, the public perception and expectation of privacy, and the political and legal issues surrounding it all.
Individuals, as well as businesses, want to protect their sensitive data, the unauthorized disclosure of which may not be in their best interest. In the case of individuals, this is any information that helps to identify them. It is typically called personally identifiable information (PII) and can be any combination of a person’s name, address, social security number, phone number, email address, bank/financial account number, credit/debit card number, biometric records, health records, or other information.
In the case of a business, this is any business-related information that, if tampered with or disclosed without authorization, causes a material adverse impact to the business, its operations, or security.
Privacy concerns exist wherever personally identifiable information or other sensitive information is collected, stored, used, destroyed or deleted – in digital, physical, or other forms.
The challenge of data privacy lies in being able to use the data while protecting privacy preferences and interests, while still abiding and adhering to relevant laws or regulations. The legal protection of the right to privacy, in particular, varies greatly around the world, so it’s important to know various laws and regulations related to privacy and data protection and to continually reassess an organization’s compliance with privacy and security regulations.
New York State Department of Financial Services (NYDFS 500) and General Data Protection Regulation (GDPR) are two important privacy laws with which many financial services institutions must comply. This guide looks at the goals and requirements of these laws, and shares several considerations for the development and maintenance of related compliance programs.
For more information on NYDFS 500 and GDPR laws and regulations on the financial services industry, please download our guide here, or click below.