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Executives Should Address Data Security

- by Carol Conway

 

There's a tendency in today's technology-driven business world to think information technology specialists can solve most of a company's operational problems. Information technology professionals are expected to do it all: choose, implement and support efficient and effective technology — keep it and its data secure from internal and external threats.

Well, they can't unless they have the whole-hearted commitment from the organization and, specifically, direction from the management team.

In writing recently about the health care industry and the pressures imposed by government regulation, I put privacy and data security at the top of the list. But health care professionals aren't the only ones for whom this issue is critical. It's an emerging concern for every business and industry.

The question is how do companies go about collecting and using data in a responsible way?

Information is power, and companies collect a tremendous amount of information about their customers and their employees.

Powerful computers and data collection software enable companies to amass, store and sort all types of personal information — likes and dislikes, buying patterns and other facts about the people they serve and the people they work with. In a competitive environment, having this kind of personal information is often essential.

So how can they do it without violating privacy and security? That strategic question must be answered by the executive team, not just the information technology staff.

There are two areas for business professionals to consider regarding information management. The most important is the strategic position the executive team takes toward data collection, access and privacy.


...most important is the strategic position the executive team takes toward data collection, access, and privacy.

The second area of consideration are the information technology safeguards that must be implemented to support the strategic direction. Simply keeping hackers out isn't enough. Business managers at all levels must understand the purpose, process and ethics of data collection and dissemination. How much is too much before customers and employees feel violated and distrustful? Clearly, in giving clear direction to their information technology staff, business managers must understand the use and abuse of information and how it applies to employees and customers.

There is no doubt that the combination of powerful database software, warp speed computers and the Internet ease the way for collecting, storing and instantaneously accessing a massive amount of personally identifiable information. For example, human resource software allows companies to track employee skills, traits, progress and readiness to move up in the organization. The challenge for today's responsible business leader is how to protect the privacy of the individual. The same goes for responding to market pressures in terms of customizing products and services.


Most polls indicate consumers and employees are concerned about their privacy.

Most polls, however, indicate that consumers and employees are concerned about privacy. As a result, every business manager should understand what information is collected, the methods used to collect it, and how he uses and protects it.

In forging policies on data privacy, you should:

  1. Obtain consent to collect data.
  2. Identify how it will be accessed and used.
  3. Limit its use, disclosure and retention.
  4. Maintain an openness to the company's process and its position on privacy and security.
  5. Safeguard data.
  6. Consider dispute resolution, i.e., how to research and resolve complaints.

While the matter of data privacy is technology-oriented, information technology professionals can't do it all. The technology team can get you the data, massage it, store and protect it, but it's up to management to control it.


Carol Conway is the owner of CRS Technology. She may be contacted at carol@crsonline.net.

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Executives should address data security