In today's fast-paced digital landscape, data plays a key role in driving business success. Whether it's understanding customer preferences or improving operational efficiency, how you manage your data makes all the difference. As the volume of data continues to grow, having strong, compliant data management policies in place is more important than ever.
Good data management ensures your business information is organised, accurate, and secure. Without it, you risk making poor decisions based on inaccurate data, leading to inefficiencies, missed opportunities, and compliance issues.
Outsourcing data management allows you to focus on the growth of your business while experts handle the complexities of data. It makes data easier to access, supports smarter decision-making, and ensures compliance with regulations like GDPR, safeguarding your business and customers.
What is Data Management?
Data management is the process of organising, storing, protecting, and using data in the most effective way throughout its lifecycle. It covers everything from when data is collected, stored and accessed, through to when it is deleted. The aim is to ensure that data is accurate, easy to reach when needed, and secure, allowing businesses to make better decisions while avoiding risks.
Key parts of data management include:
- Data Quality: Making sure the data is accurate, complete, and consistent. Poor data quality can lead to mistakes and missed opportunities.
- Data Governance: Setting up rules and policies on who can access and manage the data. This helps keep everything transparent and accountable.
- Data Security: Protecting the data from threats like hacking and unauthorised access. It's essential to keep data safe and secure.
- Data Privacy: Ensuring personal data is handled properly and in line with privacy laws. This protects people's rights and keeps sensitive information confidential.
Outsourcing Data Management
Many businesses choose to outsource data management to experts, allowing them to focus on their core activities while ensuring their data is properly handled.
Outsourcing data management means partnering with a professional team who can handle everything from data cleansing and security to governance and privacy. These experts are up to date with the latest regulations and best practices, helping businesses stay compliant and avoid costly mistakes. They should also have access to quality data management tools and systems which can bring additional capabilities to bear when it comes to handling your important data.
Understanding Compliance and GDPR (General Data Protection Regulation)
Compliance refers to adhering to laws, regulations, and industry standards designed to protect sensitive information. One of the most important data protection laws in the digital age is the General Data Protection Regulation (GDPR). It's also relatively new, and many firms can still be unsure how to proceed, lack expert knowledge within teams or even know whether they're in compliance.
The General Data Protection Regulation (GDPR) is a data privacy law that came into effect in May 2018, designed to protect individuals' personal information within the European Union (EU) and the European Economic Area (EEA). Even businesses outside these regions must comply if they handle the data of EU citizens, which of course now includes the United Kingdom following Brexit. GDPR transformed how organisations collect, process, and store data, placing a strong emphasis on protecting people's privacy rights.
For businesses, GDPR is not just a regulation; it's a fundamental shift in how personal data is managed. From marketing campaigns to customer service, it affects every aspect of operations that involves handling data.
Why GDPR Matters
Failing to comply with GDPR can harm more than just a company's finances - it can damage reputation and customer trust. Businesses must manage personal data carefully, ensuring security measures are in place to prevent breaches and demonstrating a commitment to protecting their customers' rights. There also needs to be utmost transparency with customers and service users in terms of how their data will be used, and the purpose(s) behind its collection, for example when signing up via an online form.
Outsourcing data management to experts is a smart move for businesses looking to navigate GDPR requirements with confidence. It provides access to specialists who ensure that once it's collected, data is handled securely, the process is transparent, and fully compliant with regulations.
Risks around GDPR
The key principles of the GDPR are lawfulness, fairness and transparency when it comes to handling customer data - all values responsible businesses should adhere to, but the regulation essentially enshrines these in law. This means the data should be managed in a manner that does not disadvantage the data subject, ie; the user.
It also requires that data should be collected for a specific purpose, clearly set out and limited strictly to only that which is necessary for that purpose. GDPR stipulates that personal data relating to individuals be processed in a way that ensures appropriate security and is protected against theft, being misplaced or lost, as well as destruction.
There also must be accountability - with a data controller appointed within the organisation who is not only responsible for compliance with the regulations, but is able to demonstrate this. It should be noted, that outsourcing data processing to a third-party partner does not absolve the business of accountability when it comes to the GDPR regulations; rather it extends that accountability to the service provider too.
So what are the risks of non-compliance?
The most obvious penalty a business could face as a result of non-compliance with GDPR is a financial one. Non-compliance can lead to severe penalties, including fines of up to €20 million or 4% of annual global turnover - whichever is higher. Even less serious violations could attract fines of up to €10 million or 2% of annual turnover.
Customers and end-users are increasingly savvy when it comes to GDPR, and privacy concerns around data have never been higher with the public. This generally welcome awareness does however increase the risk for business for complaints or even public backlash (for example across social media), if mistakes are made. Even one breach or lapse in adherence to the GDPR regulations could end up losing a business trust with their customers, negative PR, and ultimately hit them in the pocket.
Within the UK, it's the responsibility of the Information Commissioner's Office (ICO) to take up cases of non-compliance with GDPR. They could look into a case in the event of a complaint, but not necessarily - it could be initiated by a review from the authorities. If a business is audited by the ICO, this can be disruptive. Showing the ICO how a business is compliant would be time and resource-consuming, there's no guarantee of the outcome, and the business could be prevented from handling and processing data indefinitely.
The Role of Data Outsourcing in Business Growth
It might seem that with the risks to a business of GDPR non-compliance, outsourcing would be an extra level of complexity. After all, outsourcing functions like IT, HR, and Contact Centres does all involve processing personal data and handing control over that to a third-party data handler. However, with the right partner, the risks around compliance can not only be mitigated, but minimised to a greater extent than not outsourcing, particularly if the service provider specialises in data management services.
Some of the challenges faced by a business "doing it alone" with GDPR can actually be offset by working with the right outsourcing partner. A reputable data management organisation can set clear parameters on processing, security measures, tools and safeguards, and the division of responsibilities that align with GDPR responsibilities. They can draw up agreements which set out the GDPR and data protection obligations of each party, assign a data controller and include the terms for regular audits, as well as clear processes for breach notifications.
Due diligence is absolutely vital when it comes to outsourcing your data management. There should be regular audits and checks put in place to ensure GDPR-compliance. This data "mapping" can help to identify gaps in the current data protection, storage and processing and making sure everything is transparent. Secondly, if there are going to be new data processing activities, such as a new business process, then DPIAs are important - a Data Protection Impact Assessment. These are particularly needed if there's data processing involving special categories of information, such as biometric details - or if the data is being sent overseas.
Implementing many aspects of data management may also not be possible within a business; the company may not have the right tools, or have the trained staff to undertake the processes needed. For example, online cookie management to collect user consents, then store and manage them in a compliant way, can all be handled by a good data management outsource partner. They could also bring expert, trained staff to bear within the company's operations, who are able to understand the latest GDPR developments and avoid the pitfalls.
Outsource partners can also offer more robust security measures for a company's data. Encryption tools, implementing two-factor authentication technology for users of a website, and plugging in the latest security patches all add layers of protection to keep user data secure and compliant under the regulations. These systems are also regularly tested and scanned to ensure the highest levels of security.
How Dawleys Can Help
Finding a trustworthy and knowledgeable GDPR compliant outsourcing partner to handle your data management has never been more important. Whether your business is in a start-up phase with a few employees or has several large departments handling large volumes of data, leveraging the expertise of Dawleys can provide reassurance, organisation and the ability to scale - while you focus on the core of your business.
Dawleys is able to bring decades of experience to bear in outsourced data management services, and a strong track record in handling, securing, storing and analysing your data, whilst also keeping across the latest developments.
From a GDPR-standpoint, Dawleys offer efficient database management, ensuring compliance with regulatory standards and implementing strong security protocols to prevent breaches.
The regular reviews conducted by Dawleys mean the client database is kept up to date, ensuring relevance and utility for your company, and deleting obsolete data - meaning nothing is retained for longer than it should be, in-keeping with GDPR.
Ready to take control of your data and ensure GDPR compliance? Contact us today to discover how our experts can support your business and help you stay ahead.