Protecting personal data in a digital-first world: Best practices for businesses

Protecting personal data in a digital-first world: Best practices for businesses

By Rocio Avila, Data Privacy and Protection Counsel, VFS Global

As organisations integrate new technologies into their operations, the volume and complexity of data they manage grow exponentially. In this environment, safeguarding personal data is no longer just a technical challenge—it’s a strategic priority that shapes a company’s credibility and future growth. Businesses now handle vast volumes of sensitive information daily, from online transactions to cloud-based operations. While this shift has unlocked new opportunities for growth and innovation, it has also exposed organisations to numerous cyber threats, including data breaches, identity theft, and cyberattacks. According to IBM’s Data Breach Report, the financial impact of data breaches in India is significant, with the average cost reaching ₹19.5 crore (approximately $2.6 million) in 2024, marking a 9% increase from the previous year and a 39% rise since 2020. The consequences of inadequate data security can range from financial losses and reputational damage to legal ramifications and erosion of customer trust. Therefore, adopting a proactive and comprehensive approach to data protection is not just a regulatory requirement but a business imperative. In today’s hyper-connected world, resilience and trust require a strategy that integrates robust security frameworks, regulatory adherence, and a strong privacy culture.

Building a robust security framework to safeguard data

A comprehensive security framework forms the backbone of any effective data protection strategy. Businesses must adopt a multi-layered approach that encompasses encryption to safeguard data in transit and at rest, stringent access controls to limit exposure, and continuous audits to identify and mitigate vulnerabilities. Proper data classification and segmentation play a critical role in enhancing security by categorising information based on sensitivity and ensuring that only authorised personnel have access. Furthermore, implementing multi-factor authentication (MFA) and real-time threat monitoring provides additional layers of protection, allowing businesses to detect and respond to potential breaches before they escalate. Phishing awareness and regular security awareness training are essential to equip employees with the knowledge to identify and respond to threats effectively. By integrating these elements cohesively, organisations can build a resilient security infrastructure that adapts to the evolving threat landscape.

Ensuring compliance with regulatory frameworks is equally essential in the pursuit of robust data protection. Regulations such as the General Data Protection Regulation (GDPR) and India’s Digital Personal Data Protection Act mandate stringent guidelines for handling personal data, emphasising the need for transparency, accountability, and user consent. Compliance is not a one-time effort but an ongoing process that requires regular audits, timely policy updates, and a dedicated focus on staying aligned with legal obligations. Proactive regulatory compliance not only mitigates legal risks but also enhances organisational credibility and customer trust.

Fostering a data privacy culture across the organisation

Beyond regulatory compliance, fostering a culture of data privacy within an organisation is essential for long-term security success. Employees often serve as the first line of defence against cyber threats, which makes investing in regular training and awareness programs crucial. According to a PwC India survey, only 16% of consumers in India fully understand the Digital Personal Data Protection (DPDP) Act. By educating staff on best practices—such as recognising phishing attempts and adhering to data handling protocols—businesses can significantly reduce the risk of human error. Embedding privacy-by-design principles into business processes ensures that data protection is integrated at every stage of operations, from product development to customer interactions. Cultivating a company-wide mindset that values data privacy promotes collective responsibility and reinforces the organisation’s commitment to safeguarding sensitive information.

The rapid advancement of technology presents new opportunities to enhance data protection measures. Leveraging artificial intelligence (AI) and machine learning (ML) enables businesses to detect threats with greater accuracy and predict potential vulnerabilities before they are exploited. AI-driven analytics can identify anomalies and suspicious patterns, providing real-time insights that empower proactive security measures. Additionally, automation in compliance processes streamline reporting and monitoring efforts, reducing manual effort and ensuring consistency. Cloud security solutions also offer scalable protection, allowing businesses to maintain secure operations in hybrid work environments while benefiting from enhanced encryption and access controls.

Ultimately, strong data protection is not just a regulatory necessity but a strategic business enabler. A robust approach to data security enhances brand reputation, strengthens customer confidence, and aligns with broader business growth objectives. By embedding data protection into the core of their operations, businesses can future-proof themselves against emerging cyber threats while maintaining operational resilience. As the digital landscape continues to evolve, organisations that prioritise data security as a fundamental business function will be best positioned to thrive in an increasingly interconnected world.

personal datasecurityVFS Global
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