Since the evolution of online commercialization, data management has become a huge concern for companies and governing world countries. Millions of consumers trust companies with their personal information, including credit cards, addresses, and telephone numbers. Without security protocols to protect your customers’ data, it can be costly and ruin the reputation of your business.
If you accept online payments for services or products, data sovereignty applies and is relative to your business. Wikipedia defines sovereignty of data as a “concept or idea that data are subject to the laws and governance structures within the nation it is collected.” This means you have to comply with data protection regulations.
The digital world will continue to transform for efficient data management when conducting business in the cloud. Governments passed laws and regulations for cloud computation, control, and storage of data. It’s essential to protecting your company’s assets and consumers’ private information.
Ways to Protect Your Assets and Clients’ Information
Cloud service providers offer a variety of applications to enterprises to make them more competitive in national and global markets. Their services enable you to manage and control data based on various laws and regulations in the countries you conduct business. Some ways you can protect your assets and clients’ data are as follows:
Most companies have vendors they pay for products and services. Be sure to ask them about where they store their customers’ information, on their premises and/or data centers, for an example. Cloud providers must be in compliance with the rules and regulations of the country they do business.
- Use encryption for data control at locations of your business before it goes to the data center of the vendor. You can get information from vendors about how they store, access, and secure data.
- Authentication prevents unauthorized individuals from gaining access and violating compliance laws. It makes it harder for hackers to commit criminal activities, including stealing customers’ personal information and your assets.
If you conduct international business, let a cloud service provider help you secure your data who is trustworthy in governance. Whether you are transitioning to the cloud or already using the cloud, hiring a provider is significant. The recommendations listed above will surely relieve you of possibly being fined by governmental officials for non-compliance.
The Significance of Sovereign Data Protection
In the United States, Congress changed its law to govern cross border access to communications transmitted online electronically. Enterprises have to comply with Cloud Act to make technology entities reveal online communications stored in data centers and on servers in foreign countries. The US government looks for the storage of data outside of its country for criminal activities.
The Stored Communications Act (SCA) requires some technology companies to disclose electronic correspondence when Federal Courts issue warrants. A court may issue a warrant based on probable cause that electronic communications are criminal evidence. The Cloud Act amended SCA to require technology enterprises submit data under a warrant whether it is in the US or another country.
The Cloud Act allows foreign governments to access data in the United States for criminal activities in electronic communications. The US government only allow selected world governments to discover data from technology companies in America.
The European government issues a four percent fine of companies’ annual international sales if there is data sovereignty violation. The General Data Protection Regulation (GDPR) protects European citizens’ data, including information and privacy. Companies have to comply with regulations in the EU.
Five Steps to take in Creating Data Protection for Your Business
Step 1: Large companies rely on cloud services, such as data centers and software to reduce the risks. If you are a small business owner, you can consider a cloud service provider offering applications for protecting personal information and data. Ensure your employees change their passwords frequently to prevent hacking and privacy breaches.
Step 2: Educate yourself to receive understanding of the requirements of data residency of your business. You should know the regulations at all locations, you offer services and products. This is essential if you operate in the US and other countries. Remember, the US government work with certain foreign governments in prosecuting online criminal activities.
Step 3: You must identify assets comprising data of your customers and vendors. You may have banking information electronically transferred to pay your vendor’s account. If you hire a cloud provider or use a software, limit the location of restricted data.
Step 4: If you have knowledge in information technology, monitor sensitive data continuously. You will see who have access to private information under your supervision. Log all your organization’s activities.
Step 5: Create a plan for monitoring compliance in the country you are conducting business. It will reduce the risk of fines imposed by national and global governments.
Advantages of Cloud Services
- Cloud services enable increased value to your enterprise regarding deployment, maintenance, and costs.
- Efficient data management and control.
- Ensure sovereign data protection.
- User transparency of data security.
- 24-hour monitoring service to detect violations and data breaches.
Cloud service providers will help enterprises operate faster and become more competitive. Make sure users visiting your online retail store or business have a transparency of managed and controlled data on your site. You build trust with your customers and have the possibility of attracting other consumers to purchase services or merchandise.
Before selecting a cloud provider, do your research on the reputation and the type of service offerings. Speak to an agent about the security features of software and monitoring services for governmental compliance. If you are a startup company and marketing international and national, seek a company able to provide a full-service package.
You can operate your business in the cloud productivity and efficiency without the worries of jeopardizing your customers’ information and your data. It will reduce costs and eliminate the risk of violating laws, rules, and regulations. The reasons for data sovereignty are for Cyber security, protection, and information privacy.
