A data policy is a set of rules that define how an organization collects, manages, stores, and disseminates personal data. It is a critical aspect of information security management as it helps organizations define their approach to privacy, data protection, and compliance with legislation.
Data policies are also known as privacy policies or information security policies. The terms can be used interchangeably but each has its own nuances. A privacy policy is a general statement about how an organization will handle personal data, whereas an information security policy specifically addresses security risks associated with the handling of sensitive information such as personally identifiable information (PII), credit card numbers, Social Security numbers, and other financial data.
Why You Need a Data Policy
The need for a data policy is becoming increasingly important as more businesses use big data technologies to analyze their customer base and operations in real time.
The GDPR requires organizations to identify what personal information they are collecting and storing so that they can determine whether they need consent before using it. A data policy helps define what constitutes personal information, how it will be used by business units, and how long it will be retained for different purposes.
Businesses also need a clearly defined process for handling requests from customers, regulators or law enforcement agencies for access to personal information held about them by the organization. This process should include procedures on how access requests are handled, including whether an individual has the right to be informed about any automated decision-making by an algorithm.
