Privacy protection is undoubtedly going to be one of the major issues of the modern Internet age. As such, it is important for the organizations and the respective leaders to take notice while actively preventing data breaches and protecting the customers.

As per the data reports by Forrester, it is estimated that an increasing number of privacy leaders will now be reporting to the respective CEOs. It is believed that privacy extends increased effects on the overall revenue of the company. As such, the overall number of privacy leaders who will be directly reporting to the CEOs is expected to increase from 23 percent in 2019 to reach around 40 percent by the time of 2021. This is significantly going to observe those who are primarily responsible for data privacy and receiving improved support from the C-suite.

CEOs Paying More Attention to Data Privacy

With several instances of major data breaches with leading organizations around the world, there are several reasons why CEOs of top organizations look forward to strengthening the respective data privacy measures. Here are some:

  • Honoring Customer Security and Privacy: The customers of the company are the most crucial aspects of any business out there. The products or services that you provide as a business are meant for the customers. Therefore, ensuring their overall privacy as well as security needs should be a part of the mission. In case some breach would occur, the everlasting negative effect on the overall trust & credibility of your brand would usually outweigh the additional expenses linked with building privacy & security into the given product or service.

 

When you are the leader, setting the tone with respect to how your organization analyzes the importance of security is an important aspect that you should consider. CEOs are responsible for setting the bar for the whole organization. You can consider embedding security and privacy of the customers within the core of the organization as well as its offerings.

 

  • Brand Trust: The best part is that the stock market stating that the victims of security breaches tend to suffer turns out to be a short-term process. However, the bad part is that the overall trust & loyalty of the customers will get irreparably affected. A survey revealed that around 70 percent of customers revealed that they would look forward to stopping doing business with an organization that might have suffered data breach. On the other hand, 93 percent of them would consider some legal action in case their data privacy was affected.

 

The introduction of new regulations like GDPR helps in narrowing down the fact that organizations are required to report compromises while strengthening requirements for public disclosures.

 

  • Following the Law: For organizations, regulatory penalties are yet another major concerns. As per the GDPR or General Data Protection Regulation, in Europe, a penalty will be imposed on up to 4 percent of the total revenue of the organization for individual breach of data privacy.