Data privacy has become a paramount concern for businesses in the digital age. As technology advances, so do the regulations and standards governing the use and protection of personal data. A recent survey conducted by Statista Inc. revealed the top 7 Data Privacy Challenges for Companies with US Operations. With the ever-changing data privacy landscape, businesses encounter obstacles that demand attention. In this article, we will explore the seven key data privacy challenges based on the survey results and delve into each issue to understand US companies’ difficulties comprehensively.
Tracking the Status of Legislation and State Law Differences (59%)
The landscape of data privacy laws in the United States is incredibly complex. With different states enacting their legislation, companies need help to keep up. This challenge poses a significant burden on businesses, as they need to ensure compliance with a patchwork of regulations, each with its nuances. An essential step to address this challenge is to invest in legal expertise and technology that tracks changes in legislation, ensuring businesses remain compliant at all times.
Increasing Budget (52%)
Maintaining a robust data privacy infrastructure demands financial resources. US companies are grappling with the need to allocate substantial budgets for data protection initiatives, including personnel, technology, and training. An increase in the budget allocation is essential to ensure the protection of customer and employee data, compliance with regulations, and the organisation’s overall security.
Understanding Data Within the Organization (43%)
Understanding the data that resides within a company’s systems is fundamental to data privacy. Many companies need help to grasp the extent and nature of the data they collect and store. To overcome this challenge, organisations should invest in data governance and management solutions that enable them to classify and manage data effectively, ensuring it’s used and protected appropriately.
Lack of Available Staff (42%)
A need for more qualified staff is a persistent challenge in data privacy compliance. The demand for experts in the field exceeds the supply. Companies need help finding and retaining skilled professionals to navigate the complex regulatory landscape and implement robust data protection strategies. To address this issue, businesses should invest in training programs, seek external expertise, and develop attractive compensation packages to attract and retain qualified personnel.
Obtaining Management Approval and Support (30%)
Gaining buy-in from upper management for data privacy initiatives is essential. However, it can be challenging, as some executives may need to appreciate the importance of data privacy fully or may be hesitant to allocate resources. Companies must present a strong business case highlighting the potential risks and consequences of data breaches, non-compliance, and reputational damage to address this issue.
Lack of Appointed Compliance Leader (21%)
Effective data privacy compliance requires leadership and oversight. In some organisations, the absence of an appointed leader responsible for managing compliance can lead to a lack of direction and accountability. To overcome this challenge, businesses should designate a Chief Privacy Officer (CPO) or a similar role responsible for overseeing data privacy efforts and ensuring they align with regulatory requirements.
The landscape of data privacy in the United States is fraught with challenges. Based on the survey results from Statista Inc., it is clear that US companies face multiple obstacles, including tracking complex legislation, budget constraints, understanding internal data, staffing shortages, management buy-in, and a need for more appointed leaders. Addressing these challenges requires a multifaceted approach that includes legal and regulatory expertise, financial commitment, data governance, investment in personnel, strategic communication, and strong leadership.
In an age where data breaches and privacy violations can have significant legal and financial consequences, companies must prioritise addressing these challenges to safeguard their data, protect their reputation, and ensure long-term success in an increasingly data-driven world.
Formiti Data International Provide bespoke fixed-price data Privacy project programs. Find out how Formiti Data International can help you overcome these challenges. Click Here