More than any other issue, cybersecurity issues, and data privacy breaches are some of the most critical problems a company can face. As data privacy breaches are becoming increasingly common and severe, implementing personal data privacy ordinance and GDPR becomes the need of the hour. GDPR and the data protection law and policy in Hong Kong are some of the most famous and powerful data privacy laws currently.
Even with increasing data privacy breaches, numerous companies are reluctant to adhere to these ordinances and regulations. They believe it to be a waste of time and resources. However, such companies fail to recognize the benefits that these data privacy laws can provide, not just for their customers but also for their own business.
One company that adheres to these ordinances and regulations is Apple. Recently, Apple is planning to launch a search engine in the iOS 14 system to take on Google according to the Financial Times.
Forbes recently published an article regarding Apple building a search engine to tackle Google. One of the most unique features this search engine has is increased user privacy. Given privacy is a huge concern, the company insisted that “privacy” is a basic human right, and one of apple’s core values. Therefore, this search engine would refrain from storing personal information, nor track users across the web.
With one of the world’s most valuable company prioritizing privacy and protection, here are five reasons to consider incorporating data privacy and protection regulations into your business operations:
1. Violations of GDPR and other data protection laws can incur heavy fines
Non-compliance with data privacy and data protection laws, such as the GDPR, data protection law, and policy in Hong Kong, personal data privacy ordinance, can attract several heavy fines. Businesses end up losing a major chunk of their revenue in trying to pay off these fines. According to the official GDPR website, violation of the GDPR regulations can result in fines of up to 10 million euros. Undertakings can be fined 2% of their global turnover as well. Obviously, it is a smart decision to avoid these fines and utilize this capital in other domains. Apart from these fines, non-compliance can also lead to losing numerous strategic business partnerships. Reputed and established businesses do not want to associate themselves with companies that do not follow data privacy and data protection laws. This can throw a huge wrench in your business growth.
2. Establishing cybersecurity helps support and flourish innovation
One main reason why businesses avoid implementing data privacy and protection laws is that it will hamper their products and services. They believe not having access to data might stop them from providing enhanced service to their customers. However, this is where businesses are going wrong. Implementing data privacy and protection laws in Hong Kong can help them bring forth innovative products and services.
It takes a lot of innovation to create products and services in line with data privacy and data protection laws. Thus, companies incorporating data privacy and data protection laws in their business models will be able to create new technology with data privacy at the heart of it. Since customers are demanding data privacy and cybersecurity more than ever before, providing them such products and services will enable companies to grow exponentially.
3. Absence of data privacy and data protection rules cause crippling breaches
The only way to protect personal data to the fullest is by implementing top-notch security controls. However, when a company fails to do so, they stand the risk of data privacy breaches that can have a crippling effect on their business. According to a report by the Ponemon Institute, a single data breach could cost an IT company about $3.86 million in 2020. Plus, when you face a data privacy breach, you betray your customer’s trust. Since the customer’s data has now been shared with a third-party, your customer will no longer stay loyal to you. This can have a drastic effect on your business’ growth. Such data privacy breaches destroy your brand value and prevent you from building a loyal customer base.
Your customer begins to lose trust in your business and no longer finds it safe to purchase from you. However, companies that take extra efforts to provide data protection will attract positive attention from customers. When companies prioritize customer data privacy, they improve their brand value. Such solid standing in the market enables you to grow your business and gain a competitive advantage over your competitors.
4. Following cybersecurity and data privacy helps build customer loyalty
Awareness about data protection and data privacy amongst customers is increasing with every passing day. When companies fulfill their customers’ wishes regarding the same, they can build a brand that endures. Your customers will begin to do long-term business with you without worrying about any repercussions (because there won’t be any). Building customer loyalty enables you to avoid acquiring more customers. Acquiring a new customer is costlier than retaining an old one. Thus, building customer loyalty by complying with data privacy and protection laws will reduce costs associated with gaining new customers.
5. Being vigilant with cybersecurity helps make better business relationships
Companies that comply with data privacy and protection laws would never want to do business with companies that don’t. These ethical companies are trying to build themselves as a thought leader, rather than a bad reputation. In other words, if you incorporate data privacy, data protection, and cybersecurity laws in your business operations, you stand the chance of building better business relationships. After all, everyone wishes to work with a trustworthy business partner who won’t jeopardize anything.