Data privacy may well be a key concern for consumers and regulators alike, but a new study exposes just how far many companies are lagging behind – with some even admitting data protection it is not even on the agenda.
The study, The Edelman Privacy Risk Index, was carried out by the Ponemon Institute and quizzed 6,400 corporate privacy and security executives in 29 countries around the world about their data practices.
It paints a worrying picture of corporate ineptitude and a lack of awareness about how to manage the potential financial and reputational damage over the loss or misuse of personal information.
Businesses, particularly at a senior level, are not reacting quickly enough to data and security risk.
Over half (57%) of respondents think their organisation does not consider privacy and the protection of personal information to be a corporate priority.
Meanwhile, 62% say their company does not have the expertise, training or technology, and 55% say the adequate resources, to protect personal information.
And over half (57%) of respondents believe their company is not transparent about what it does with employee and customer information, and 61% are slow to respond to consumer and regulator complaints about privacy.
The results are in stark contrast to the growing consumer and regulatory pressure on companies to handle personal data responsibly and securely, especially within the looming EU data directive.
Even more concerning is the potential loss of consumer trust. According to research undertaken by Edelman earlier this year, 85% of consumers around the world feel companies need to take data security and privacy more seriously, while 70% said they are more concerned about these issues than they were five years ago.
“The findings shine a light on the worrying void between business’ privacy practices and consumer expectations about how their personal data is handled. From a communications and stakeholder engagement point of view, what is most concerning is the lack of clarity and transparency about these practices,” said Pete Pedersen, global chair, technology practice, Edelman.
“With the growing level of consumer, media and regulatory attention currently focused on privacy, businesses simply cannot afford to risk the reputational and financial damage that may result from a lack of attention to this business critical need.”
