Despite the fact that most businesses now operate at least partially in the online world, a surprising number are not aware of the importance of properly classifying data. An astonishing 37 percent of organizations do not have a system in place for data classification according to Risk Management Magazine. And the legal and financial ramifications of a breach can be astronomical for companies that are not taking the proper precautions.
Data classification involves categorizing the information your company collects into levels of confidentiality. For instance, health information would receive a higher priority than a database of zip codes. Since most companies process massive amounts of data during the course of business, it is not feasible to provide maximum security over all data collected. Classifying your data allows the most sensitive data to be highly secured while the less risky data is protected by the usual means for your internet access.
Information management and a key data policy should be implemented by all businesses that store data using the web. In a survey conducted by Protiviti, as many as one in four companies do not have a written data policy and one in three do not have proper encryption set up to protect their data. If a breach were to occur, companies without a key data policy or encryption software would not be able to target what information was stolen and mitigating damages would be next to impossible.
On a more positive note, Protiviti’s detailed report shows that 67 percent of businesses are more aware of the dangers of unclassified data and are making improvements. It also shows that while encryption is not as popular as it should be, record retention practices and usage regulations are in place at more than 80 percent of the companies surveyed.
Lamb Financial Group offers nonprofit risk management services including the proper insurance policies for all of your cyber security needs. Call us at 866-481-5262 or contact us for more information on how we can help you protect your organization’s valuable data with a cyber security insurance package.