Data Security Management: What Is It and Why Is It Crucial for Your Business?

In medieval times, strong fortresses made of stone and mortar served as symbols of strength and resilience, providing safety and security against marauders for the people and their treasure (or, in today’s vernacular, assets). In modern times, we not only have physical assets to protect but also digital ones. Businesses, in particular, deal daily with vast amounts of digital assets. Both large and small businesses rely heavily on data to drive decision making, enhance customer experiences, and gain competitive advantages. However, this data-driven paradigm also presents significant risks, as cyber threats loom ever larger and more sophisticated.

Instead of stone and mortar, modern-day fortresses consist of robust data-security management systems that safeguard digital assets against a constant barrage of cyber threats and intrusions. These modern fortresses play a vital role in safeguarding digital assets and preserving the integrity of modern businesses in today's interconnected world.

What is data security management?

Data security management is the set of processes, policies, technologies, and practices implemented by an organization to protect its digital data from unauthorized access, disclosure, alteration, destruction, or theft. It encompasses various aspects of ensuring the confidentiality, integrity, and availability of data assets throughout their lifecycle.

Organizations typically manage vast amounts of sensitive data, like customer information, proprietary business strategies, and critical intellectual property. If that data falls into the wrong hands, the repercussions could be devastating, ranging from financial losses and legal liabilities to irreparable damage to reputation and trust. To that end, effective data security management is one of the cornerstones of business resilience and sustainability.

Like a fortress, effective data security management requires strategic planning, robust defenses, and vigilant guardianship. And just as a fortress was fortified with walls, moats, and towers to deter invaders, data-security systems employ encryption, firewalls, and intrusion-detection components to fend off cyber attackers.

Businesses that prioritize data security management are better positioned to thrive in today's interconnected world. By safeguarding their most valuable asset—data—they not only protect their bottom line but also demonstrate their commitment to integrity, trust, and responsible stewardship in an increasingly data-driven society.

Why is data security important for your business?

Data breaches pose significant negative impacts on businesses, ranging from financial losses and legal liabilities to reputational damage and loss of customer trust. One prominent example is the Equifax data breach in 2017, where sensitive personal information of approximately 147 million individuals was compromised. That data included Social Security numbers, birth dates, and addresses. Equifax faced massive financial repercussions, including legal settlements, regulatory fines, and a significant drop in stock value.

Another significant breach (the largest in US history) happened to Yahoo, Inc. in 2013. That breach affected data for over three billion user accounts worldwide. The attackers accessed account information such as people's security questions and answers, passwords, bank data, and more. Another smaller attack (500,000 million accounts) occurred in 2014. After these attacks, Yahoo was hit with several shareholder lawsuits. In addition, the disclosure that data on all of Yahoo's accounts was compromised increased financial liabilities for Verizon, which was in a deal to purchase Yahoo at the time. So, the effects of data breaches can be quite extensive and affect vast numbers of people.

Data security management creates a wall against such breaches and their repercussions. It also provides numerous benefits for organizations that implement such a strategy:

• Protection against data breaches: Data security management helps safeguard sensitive information from unauthorized access, reducing the risk of data breaches. By implementing encryption, access controls, and other security measures, organizations can prevent unauthorized parties from gaining access to valuable data.
• Compliance with regulations: Many industries are subject to strict regulations regarding data protection, such as the General Data Protection Regulation (GDRP), the Health Insurance Portability and Accountability Act (HIPAA), and the Payment Card Industry Data Security Standard (PCI DSS). Implementing data security management practices ensures compliance with these regulations, avoiding legal penalties and reputational damage that can result from non-compliance.
• Operational efficiency: By implementing solid data-security protocols, organizations can streamline their processes (for example, data access, authentication, and authorization). Then, employees can access the data they need quickly and securely, which leads to improved productivity and operational efficiency.
• Maintenance of customer trust: Data breaches can erode customer trust and damage the reputation of an organization. By prioritizing data security management, companies demonstrate their commitment to protecting customer information, fostering trust and loyalty among customers, partners, and stakeholders.
• Reduced financial losses: Data breaches can result in significant financial losses due to fines, legal fees, remediation costs, and lost business opportunities. By investing in data security management, organizations can mitigate the financial impact of breaches and avoid costly repercussions.
• Enhanced business continuity: Data security management plays a crucial role in maintaining business continuity. By implementing measures such as regular data backups, disaster recovery plans, and incident response protocols, organizations can minimize the impact of security incidents and ensure the continued operation of critical business functions.

5 best practices for data security management

Developing a robust strategy for data security management requires building a solid foundation of best practices, such as the ones described in the following sections.

• Encrypt data at rest and in transit
  

  Encrypting data at rest involves securing data that is stored in databases, servers, or other storage devices. This practice ensures that even if unauthorized users gain access to the storage medium, they cannot read or decipher the data without the encryption key.

  Encrypting data in transit involves securing data as it travels between devices and across networks. Typically, this process is achieved using protocols such as Transport Layer Security (TLS) or Secure Sockets Layer (SSL) to create a secure communication channel between endpoints.

  By encrypting data both at rest and in transit, organizations can protect sensitive information from unauthorized access, interception, and tampering.

• Conduct regular security testing to identify weaknesses

  Regular security testing, including vulnerability assessments and penetration testing, helps organizations identify weaknesses in their systems, applications, and networks. Vulnerability assessments involve scanning systems for known vulnerabilities and configuration errors. Penetration testing (or, pen testing) involves simulating real-world attacks to identify potential security gaps and to assess the effectiveness of existing security controls.

  By proactively identifying and addressing security weaknesses, organizations can strengthen their overall security posture and reduce the risk of successful cyberattacks.

• Audit data for lifecycle and classification

  Auditing data for lifecycle and classification involves tracking the entire lifecycle of data within an organization, from creation and storage to usage and deletion. Data classification involves categorizing data based on its sensitivity and criticality. For example, categories can include public, internal, confidential, or regulated.

  Auditing data for lifecycle and classification helps organizations to understand their data landscape better, to implement appropriate security controls based on data sensitivity, and to ensure compliance with relevant regulations and policies.

• Educate employees on data-security best practices

  According to the Merriam-Webster Dictionary, a weak link is defined as "the least strong or [least] successful part" of something. Regarding data security, employees are often the weakest link in an organization in that human error or negligence can inadvertently expose sensitive data to threats.

  Providing comprehensive training and awareness programs about best practices for data security helps employees understand their roles and responsibilities in protecting sensitive information. Training should include topics such as recognizing phishing attacks, creating strong passwords, securely managing data, and reporting security incidents promptly. Employees that are educated on these best practices become "sentries on the fortress wall" that help in safeguarding sensitive information.

• Regularly backup data and ensure recoverability

  Data backups are essential for mitigating the impact of data loss that might occur due to accidental deletion, hardware failure, ransomware attacks, or other disasters. Organizations should implement regular backup procedures to ensure that critical data is backed up frequently and stored securely, either onsite or offsite.

  In addition, organizations should regularly test their backup-and-recovery processes to verify data integrity and to ensure prompt restoration in the event of a data-loss incident. By following this practice, organizations can minimize downtime, mitigate financial losses, and maintain business continuity in the face of data-related disasters.

What does a security management process look like?

Ancient fortresses incorporated numerous towers as both defensive fortifications and as watchtowers. In the same way, organizations need to fortify their security architecture with several “towers of protection” to monitor and protect their data assets from threats and to minimize the risk of data breaches and regulatory violations.

Organizations should build a framework of towers that includes the following components:

• Data governance framework: Build a structured framework that defines the roles, responsibilities, policies, and procedures for managing and protecting data assets throughout their lifecycle.
• Access control and authorization: Implement robust access-control mechanisms (for example, role-based access control and multifactor authentication) to ensure that only authorized users can access sensitive data and resources.
• Cybersecurity automation: Implement automated tools and technologies for continuous monitoring, threat detection, incident response, and patch management to enhance your organization's security posture and reduce the risk of human error.
• Data encryption: Incorporate encryption techniques to protect data confidentiality and integrity for sensitive information that is stored on servers, databases, and during data transmission.
• Incident response plan: Develop a detailed incident response plan that outlines the steps to take in case of a data breach or security incident.
• Risk management analysis: Conduct regular risk assessments to identify potential threats, vulnerabilities, and risks to the organization's data assets and develop strategies to mitigate and manage these risks effectively.
• Vendor security assessment: Conduct thorough security assessments of third-party vendors, service providers, and cloud service providers to ensure that they adhere to your organization's security standards and compliance requirements.

Manage your data safely with CData Connect Cloud

With the constant and rapid advances in technology, the great challenge for an organization is how to keep sensitive data safe without restricting access to the people who need that data. One solution is to use data virtualization through a cloud-native application.

This type of data virtualization, found in CData Connect Cloud, ensures the security of sensitive information by keeping it exclusively in its original source. Your data remains unaltered. In addition, that data is never duplicated, relocated, or stored elsewhere, maintaining its integrity and confidentiality precisely where it originates.

Connect Cloud protects sensitive platform, company, and customer data through internal architecture, data flows, and the implementation of the security protocols that are used natively by the connected data sources. Connect Cloud provides live, encrypted access to your business data, ensuring your peace of mind and security in the digital realm.