Did you know that in 2021, the average number of cyber security attacks and data breaches increased by 15.1% from the last year, according to Forbes

Data breaches are enormously counterproductive for both the victimized company and its customers. Hacked data can include anything from very unimportant facts to highly private information. However, a breach can result in expensive remedial costs and harm a company’s reputation.

Regardless of the prevalence of cybersecurity incidents and the attention that goes along, few individuals genuinely comprehend the fundamental ideas around data storage, like the difference between data privacy and data protection.

This article will discuss how data protection differs from data privacy and why it is essential.

What Is Data Privacy? Why Is it Important?

Data privacy refers to the requirement for a company or person to decide which information stored in a digital platform can be disclosed to outside individuals.

All confidential material businesses, such as that of their clients, investors, and workers, are subject to data privacy risks. This data frequently has a crucial impact on corporate growth, management, and finances.

Data privacy restricts the availability of sensitive information to authorized parties. It shields data from destructive use by thieves and aids in making sure enterprises abide by legal standards.

Data privacy has two primary components. Access control comes first. Choosing who can have approved access to the information and who mustn’t is a critical component of preserving data privacy.

Putting safeguards in place to stop unwanted access to the data is the next part of data privacy. Data encryption shields information from access by those without authorization. Several data loss prevention tools are now available to safeguard data privacy by preventing illegal entry.

For instance, such a system could prevent a user from sending an email containing sensitive information.

What Is Data Protection? Why Is It Important?

Data security or protection is defending sensitive information against loss, alteration, or damage.

A collection of tactics and procedures defined as data protection can be used to safeguard your data’s confidentiality, accessibility, and authenticity. It is also referred to as data security sometimes.

Any institution that gathers, processes, or maintains sensitive data must have a data security strategy in place. A practical approach can lessen the effects of a compromise or disaster and assist in eliminating data loss, misuse, or modification.

A business will often appoint a data protection specialist to determine which data needs to be secured and create a set of guidelines to guarantee that the information can be restored in case it is lost, manipulated, or deleted.

Data protection strategies, notably those about recovery Recovery time objectives RTOs, safeguard information in a manner consistent with the company’s service commitments.

The timeliness of backup creation is indicated by the RPO measure. The amount of data that might be compromised in a data loss incident depends on the backup rate. If an institution has an RPO of five hours, this might risk up to five hours’ worth of information because all the data produced after the most current backup could be lost.

Data Protection vs. Data Privacy

Although privacy and data protection are crucial and frequently discussed simultaneously, these concepts do not necessarily mean the same thing.

To put it briefly, data protection is protecting data from unwanted access. Authorized access to information is about who possesses it and how it is defined. One view is that data privacy is a legal issue, while data protection is a technical problem.

These contrasts are significant because privacy and cyberattacks, major concerns in business, politics, and society, are intricately entangled with them. There are substantial regulatory ramifications related to privacy legislation for sectors susceptible to compliance standards. Additionally, guaranteeing data protection might not follow all necessary regulatory standards.

Below we are discussing what are the key differences between both data privacy and data protection.

Having One doesn’t guarantee the other

Even with a data security plan in place, data privacy is not always guaranteed. Similar to how weak data privacy standards don’t ensure adequate data security. For instance, if there are no data protection measures, you may implement data privacy standards but still find it challenging to prevent uninvited individuals from reaching your data. Additionally, you can have data protection processes but missing data privacy regulations, leaving your sensitive data open to unwanted users.

You require data privacy and security to protect your data because you cannot have one without another. By utilizing both, you can implement the technical and regulatory safeguards necessary to protect data from malicious parties.

Regulatation vs Mechanism

Since data protection concentrates on enforcing those constraints, data privacy is concerned with determining who has permissions. The rules that data protection methods and procedures follow are defined by data privacy.

Making data privacy policies does not prevent access by unauthorized people. Similarly, you can use data protections to limit users while still allowing confidential material to be visible. Both are required to guarantee data security.

Companies ensure protection, and Users manage privacy

Who usually is in charge is another crucial difference between privacy and protection. Users frequently have discretion over how much personal information is exchanged and with who for confidentiality reasons. It is the responsibility of the businesses managing the data to make sure it is kept confidential for security. To better guarantee that users’ privacy wishes are honored by firms, compliance standards were developed to reflect this distinction.

Security is needed for privacy

You cannot implement data privacy policies and anticipate data security when your business collects information from people and clients. Data privacy doesn’t do anything to protect your firm’s data because it often only addresses how companies can legitimately gather data and how they may use it after it has been kept.

Ethical enterprises should also have privacy laws because data privacy has no influence over data protection. Your firm can prevent criminal players from accessing data illegally by putting data security measures in effect. Due to the reciprocal connection between data privacy and data protection, your company should also have data security to protect customer information.

First define your privacy requirement, then implement data protection mechanisms

By now, you know that data privacy concentrates on deciding who should and should not be allowed access to information when attempting to distinguish between data protection and data privacy.

You’ll modify your data privacy guidelines when your management chooses who should be able to access data. Although choosing who should be allowed access to data is crucial, this security solution won’t completely guard against unwanted access.

Data security is a crucial next step because data privacy only partially shields data from unwelcome entities. Data privacy establishes the criteria for accessibility, and data security enables the enforcement of those criteria.

Ensuring your data isn’t sold or stolen

The process of preserving already-obtained information, regardless of what it is, is known as data protection. As a result, people frequently forget and disregard the truth that a privacy policy comes before the issue of security. The first step in risk mitigation is to consider if providing your data is required; this renders the point of its protection irrelevant.

The Takeaway?

In summary, there are several instances of connection between the ideas of data security and privacy.

Although data privacy is concerned with the usage and privacy of personal data, data security is about preserving accessibility and data integrity.

Data privacy focuses on how that secured data is used, whereas data protection relates to the rules, procedures, and tools for protecting the data.

Even if you’re required to develop rules that handle both ideas within your firm, you must comprehend both ideas and how they differ. The number of stricter data protection and privacy rules that firms must abide by is increasing.

As a responsible business owner, you should use industry standards for data security and privacy.