15 things every small business leader should know about data privacy regulations

by Janice Allen
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Companies today collect and access a wealth of customer information. Given the sensitive nature of this data, it is important to keep up with data privacy laws and have procedures in place to ensure compliance is maintained and remains a priority.

It is also crucial to remember that data protection is not just the preserve of big companies; Like their larger competitors, small businesses also need to ensure they comply with data privacy regulations.

As experts, the members of businesskinda.com Business Council are familiar with the challenges small business leaders face when it comes to data privacy. Below, discuss 15 of them essential things every small business leader should know about data privacy regulations and offer resources that can be used to effectively secure customer data.

1. No one is exempt from data privacy compliance

Small business leaders need to understand that they are not exempt from complying with compliance and data privacy regulations. Small businesses need to protect sensitive customer information to build trust with their target audiences. Customers need to feel comfortable knowing that their private information is safely stored when sharing credit card information and other sensitive data with a small business. – Elizabeth A. Douglas, Esq., Douglas Family Law Group

2. Regulatory compliance must be a priority

Small business leaders need to make sure they’re compliant with data privacy regulations, but the fact is, it may be one of the last things on their minds. Working with larger organizations or using compatible software will ultimately pass on best practices and improve compliance with data privacy regulations. – Vince Poon, Aratum


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3. Consult with experts to learn applicable laws

Data privacy regulations protect the personal information of individuals, including customers and employees. Rules vary by country and state. Business leaders need to know what rules cover their operations and why, so consult with experts who know how laws apply to your business, then create and communicate plans to adhere to them. A good resource is the International Association of Privacy Professionals. – Udi Merhav, energyOrbit

4. You must clearly communicate your intentions to customers

When working on their privacy policies, every small business leader should be clear about what kind of data they want to collect, how it will be used, and how long it will be kept. Your privacy policy should also state why the data is collected, with whom it is shared and how individuals can exercise their data-related rights. – Rachel Gomes, bar

5. Data privacy becomes a requirement for doing business

As access to and use of data becomes more valuable, most of your largest customers will make this a precondition before they can sign a contract in the next decade. Be proactive now before costs mount so high that failing to win a contract can be just a security checkpoint. – Matthew Wong, Tolunay-Wong Engineers Inc.

6. Agents can provide incredible feedback and insights

Creating a culture where employees are valued and heard is essential. Customer experience managers can foster employee relationships by spending time on the production floor talking to and listening to agent feedback and understanding the day-to-day challenges of being an agent. Some of our best customer experience improvements have come from agent feedback, and we have a formalized process for putting that feedback into action. – Sagar Rajgopal, Ubiquity

7. Data privacy includes customers and employees

Data privacy not only applies to customers, but also to employees. All entrepreneurs should be aware of this. They will have to be extra careful with details such as employees’ TIN numbers, medical records, and evaluations. For more information on how to handle employee information in accordance with the Labor Code, small and medium-sized businesses can always visit the Department of Labor website. – Myrtle Anne Ramos, Place war

8. It is essential to learn about and adhere to GDPR practices

Small business leaders must prioritize data privacy compliance. Often overlooked is the European Union’s General Data Protection Regulation (GDPR), which applies globally to all companies processing EU data. Understanding the principles and implementing the necessary measures builds trust, avoids fines and demonstrates your commitment to data protection. Stay informed and embrace GDPR practices for lasting success. – Rafael Ortiz, BRAC Advisory Group

9. Compliance builds customer confidence

Small business leaders need to understand the importance of data privacy regulations in building customer trust and avoiding fines. Regulations such as the National Institute of Standards and Technology (NIST) Cybersecurity Framework and General Data Protection Regulation (GDPR) are excellent resources for compliance. Keeping abreast of new regulations, such as the California Consumer Privacy Act (CCPA), can also help small businesses avoid compliance issues. Ultimately, prioritizing data privacy and compliance can be a key factor in a company’s success. – Malcolm Allen, Graduated America

10. A culture of respect for data privacy is important

Every business has sensitive areas and data privacy is something we should all take very seriously. This includes protection of intellectual property, financial affairs, human resources and the like. It is helpful to create a corporate culture of respect for data privacy and build in processes to enforce data privacy regulations. – Doctor Gail Lebovic, NasoClenz

11. Storing only necessary information reduces risk

A crucial aspect for both large and small companies is to store only the customer data they really need. By reviewing and storing only the necessary information, business leaders reduce the risk of data breaches and demonstrate a commitment to customer privacy. This practice builds trust and ensures compliance with data privacy regulations. – Mill Menser, Diamond Bank

12. It is important to proactively address privacy issues

Every small business leader should know the importance of anticipating and addressing privacy issues before they become a problem. You can do this by ensuring that privacy is automatically embedded in your processes so that individuals do not have to take extra steps to protect their personal data. For example, have documents that clearly communicate your privacy practices to individuals. – Barbara Schreihans, Your Tax Coach LLC

13. Appointing a data privacy officer can simplify and ensure compliance

With the ever-changing landscape of technology in business, data privacy rules evolve quickly to keep up. Knowing these regulations is very important and it may be in a company’s best interest to engage or hire a data protection officer. By having one centralized responsible person, new regulations are met and the company remains compliant as rules change. – Veena Jetti, Vive funds

14. Going beyond compliance provides future protection

My years in cybersecurity have taught me that no matter how insignificant or mundane your data may seem, a creative hacker will always find ways to collect it and monetize it. That’s why you need to go beyond compliance and always maintain excellent cyber hygiene. – Jakir Bechler, BWith AI

15. Data privacy compliance is a continuous journey

One thing to know is to continually evaluate what has changed in your business and environment. Continue to improve your company’s privacy and personal data practices. Remember, privacy compliance is a journey. So you are never done, but constantly evaluating and adapting. – Punit Bhatia, FIT4PRIVACY

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