Data has become increasingly important in business and to protect customer information, data protection regulations such as the GDPR and CCPA have been put in place. As a result, companies have a responsibility to ensure that their third-party vendors are also using data responsibly for compliance and privacy. Failing to do so would put an organization’s own compliance with data privacy regulations at risk, and could lead to wasted effort, lost time and money, and negative consequences for their reputation.
This is why it is essential for organizations to vet their third-party vendors prior to working with them. Companies should check that their vendors are compliant with data protection policies and have the necessary certifications like GDPR, CCPA, ISO, TRUST-e, and IAPP. Additionally, they should assess how the vendors use their data to ensure it is collected and stored safely, and is up-to-date.
Furthermore, companies should focus on data security measures taken by the vendor, such as permission and user access controls, employee security awareness, patch management and periodic penetration testing. As part of this, they should understand their vendors’ data handling and policies, such as how they handle customer concerns, and if they offer opt-in/opt-out features.
Finally, organizations should consider the overall mentality of their vendors when it comes to data security, such as whether employees receive data and privacy training. A vendor’s lack of transparency or commitment to data privacy should be a major red flag.
By following these steps, businesses can make sure that their partners are as dedicated to data security as they are, giving them the peace of mind their operations are compliant with regulations and their customers are protected.
On July 11-12, top executives from San Francisco will come together to discuss how AI is essential for business success and how to integrate and optimize investments into successful plans. This is the perfect opportunity to learn more about data privacy and gain an edge in the industry. Keep an eye out for more information!
