As the world becomes more digital, data collection and privacy have become one of the most critical topics of global discussion. The current market capitalist economy has given room for private businesses, giant tech companies, fintech, and educational institutions to collect more data. How these businesses handle, process, and collect data has led to the creation of laws that guide how businesses handle data in the face of data breaches. As of 2023, the global average cost per data breach amounted to $4.45 million, an increase from $4.35 million in the previous year. It is more important than ever for businesses to comply with all relevant laws and regulations. Non-compliance can lead to fines and penalties, damage a company's reputation, and make it challenging to attract and retain customers' and employees' trust.
Why do Businesses need to be compliant?
Data Protection: Businesses that collect or process the personal data of Nigerians need to comply with the Nigeria Data Protection Act. Failure to comply with this standard can lead to a fine of 10 million naira or 2% of the company's annual revenue.
Employee law: In Nigeria, for example, Section 37 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) guarantees an individual right to privacy. This means everyone has a right to be left alone or free from unwarranted interference. Data protection is an attribute of privacy that the Constitution seeks to protect. In a work environment, employers are obligated by law to protect the personal data of their employees and third parties with whom they share such information.
Intellectual property: Businesses should safeguard their intellectual property, products, and brand identity by obtaining patents, trademarks, and copyrights. This prevents competitors from stealing and using their intellectual property to their advantage, which can harm the business's profits.
How Businesses Can Protect themself from Legal Liability
- Having clear comprehensive policies and procedures can help an organization run more smoothly.
- Training employees on these policies, procedures, and practices
- Conducting regular risk assessments.
- Having a robust security program in place
By taking these steps, businesses can reduce their legal risks and protect themselves from fines.
Business benefits in ensuring compliance and legal protection.
Ensure Digital Trust: Customers are more likely to do business with a company they trust. Businesses can build digital trust with their customers and create a positive reputation by ensuring compliance and legal protection.
Risk Mitigation: Compliance helps identify and mitigate potential legal violations, regulatory fines, and reputational damage risks. This proactive approach protects the business from unnecessary legal troubles.
Avoidance of Penalties: Compliance safeguards businesses from incurring costly fines and penalties associated with non-compliance. Meeting legal requirements ensures that the organization operates within the boundaries set by regulatory authorities.
Market Access and Expansion: Many industries require compliance with specific regulations for market entry. Ensuring compliance opens up opportunities for businesses to enter new markets and expand their operations regionally or internationally.
The bottom line is that legal protection and compliance are essential for businesses of all sizes. By ensuring compliance, businesses can protect themselves from legal liability, minimize risks, and improve their security posture. Archiving compliance can be a daunting task for businesses due to the manual audit process. At Cybervegent, our automated compliance solution offers an efficient audit process that saves you valuable time and makes you archive your NDPA complaint within 14 days. To get started, contact us at info@cybervegrnt.com
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