data governance Archives

Understanding the FTC Safeguards Rule

data flow, data governance, Data Security, FTC Standards Rule, FTC violations, Ophtek, project leader, Security, security plandata flow, Data Security, FTC Standards Rule, FTC violations, Ophtek, security planOphtek, LLC

May 2024

As a business owner, it’s crucial you protect the data held by your organization. And the FTC Safeguards Rule means this is an absolute necessity.

Originating as part of the Gramm-Leach-Bliley Act in 2002, the FTC Safeguards Rule is a set of regulations which govern how a business must protect its data. After all, a business not only holds sensitive information regarding its customers, but also its employees. And in the modern age, this data is constantly in the crosshairs of threat actors. T herefore, safeguarding this data is paramount. Otherwise, your business is at risk of being slapped with hefty fines and penalties.

A Closer Look at the FTC Safeguards Rule

If you want to adhere to the FTC Safeguards Rule, you need to put a comprehensive strategy into place. Our recommendations for drawing up a plan are:

Appoint a Project Leader: it’s important you have a project leader when tackling the FTC Safeguards Rule. This leader will be able to build your strategy and execute it efficiently. They will, of course, require some level of IT competency and understanding of security procedures, but it can easily be any individual within your organization.
Identify the Relevant Data: the next step is to evaluate the data handled within your organization and identify what falls under the definition of personal information. So, start by creating an inventory of the personal data you hold. This allows you to understand where all your personal data is located. Next, you need to evaluate the data risk of these records e.g. whether this data i s encrypted or not.
Map Your Data Flow: with your data identified, it’s time to identify the lifecycle of this data and how it flows through your business. Make sure you can categorize each form of data and record how it’s collected, stored, and once it’s of no further use, the methods by which you destroy it.
Finalize Your Security Plan: your final step involves consolidating all the information you’ve gathered so far and implementing a security plan. This could include recommendations for data storage, security measures such as enhanced network monitoring, and ensuring that automatic updates are activated across your IT infrastructure.

What Happens When You Don’t Comply?

As of June 2023, if your business fails to comply with the FTC Safeguards Rule, the FTC have the power to hit you with a fine of up to $100,000 per violation. And if you make multiple violations, these fines can quickly cause you major financial damage. There’s also the risk of any affected customers or employees also taking legal action against you. Compliance with the FTC Safeguards Rule, therefore, needs to be a major priority for businesses of any size.

For more ways to secure and optimize your business technology, contact your l ocal IT professionals.

Digital data is perhaps the most valuable asset your organization handles, but just how secure, safe, and compliant is it?

Data governance is a crucial element of business IT and one which businesses must comply with. It gives both accountability and responsibility to the data owners, ensuring sensitive data and privacy is correctly handled. This governance can either be internal – such as data policies specific to an organization – or external, such as government or regulatory bodies. The objective of data governance is to secure data and make sure it’s not misused.

Naturally, with cyber crime showing no signs of slowing up in 2024, it’s vital you have a firm understanding of data governance for business IT.

What is Data Governance?

Data governance is a complex set of procedures and policies which can be difficult to get to grips with. However, the basics are simple to understand. A simple explanation for data governance is that it focuses on the strategic management of all the data you hold. By monitoring your data and the way in which it is used, you build defenses around that data. This allows you to minimize the risks associated with data breaches, build trust among your stakeholders, and assist with informed decision making around your data.

The Importance of Compliance

Many industries are governed by strict regulatory requirements e.g. the healthcare industry needs to adhere to the strict framework put in place by HIPAA regulations. Regardless of the industry or regulatory framework, the aim of compliance remains the same. By demonstrating adherence to compliance, you’re underlining the fact that any sensitive data you hold is protected and handled correctly. If your organization fails to hit the benchmarks laid out by external bodies, then you run the risk of some eyewatering financial penalties.

Improving Your Data Security

The best way to maximize your compliance and governance is to enhance your data security. You can achieve this in the following ways:

Employee training: one of the most common causes of data breaches is your employees. These are the individuals who are most at risk of falling victim to social engineering, phishing emails, and malvertising threats. Accordingly, you need to implement a robust training schedule for new starters and, for all staff, follow up with refresher courses.

Limit data access: it’s important you only allow data to be available to those who need it. After all, there’s no reason why your marketing team, for example, need access to your clients’ financial data. Therefore, you need to identify the data you hold and the individuals who need access to it. By restricting access, you’re safeguarding this data against being mishandled unnecessarily.

Internal audits: to ensure you’re adhering with data governance, it’s a good idea to carry out regular data audits. These are crucial for ensuring data accuracy, compliance, and security. Also, an internal audit is the best way to identify vulnerabilities in your data systems and put procedures in place to mitigate these.

Final Thoughts

With the rise of big data in business, it’s clear that good data governance practices should be a priority for any business. This will allow you to build a strong foundation of data governance to protect both your organization and your customers.

For more ways to secure and optimize your business technology, contact your local IT professionals.

Category Archives: data governance