Data protection strategy: Key components and best practices

Virtually
every
organization
recognizes
the
power
of
data
to
enhance
customer
and
employee
experiences
and
drive
better
business
decisions.
Yet,
as
data
becomes
more
valuable,
it’s
also
becoming
harder
to
protect.
Companies
continue
to
create
more
attack
surfaces
with
hybrid
models,
scattering
critical
data
across
cloud,
third-party
and
on-premises
locations,
while threat
actors
constantly
devise
new
and
creative
ways
to
exploit
vulnerabilities.

In
response,
many
organizations
are
focusing
more
on

data
protection,
only
to
find
a
lack
of
formal
guidelines
and
advice.

While
every
data
protection
strategy
is
unique,
below
are
several
key
components
and
best
practices
to
consider
when
building
one
for
your
organization.

What
is
a
data
protection
strategy?

A
data
protection
strategy
is
a
set
of
measures
and
processes
to
safeguard
an
organization’s
sensitive
information
from
data
loss
and
corruption.
Its
principles
are
the
same
as
those
of
data
protection—to
protect
data and support
data
availability.

To
fulfill
these
principles,
data
protection
strategies
generally
focus
on
the
following
three
areas:

• 
  
  Data
  security—protecting
  digital
  information
  from
  unauthorized
  access,
  corruption
  or
  theft
  throughout
  its
  entire
  lifecycle.
• 
  Data
  availability—ensuring
  critical
  data
  is
  available
  for
  business
  operations
  even
  during
  a
  data
  breach,
  malware
  or
  ransomware
  attack.
• 
  Access
  control—making
  critical
  data
  accessible
  only
  to
  employees
  who
  need
  it
  and
  not
  to
  those
  who
  don’t.

Data
protection’s
emphasis
on
accessibility
and
availability
is
one
of
the
main
reasons
it
differs
from
data
security.
While
data
security
focuses
on
protecting
digital
information
from threat
actors and
unauthorized
access,
data
protection
does
all
that
and
more.
It
supports
the
same
security
measures
as
data
security
but
also
covers
authentication,
data
backup,
data
storage
and
achieving
regulatory
compliance,
as
in
the
European
Union’s

General
Data
Protection
Regulation
(GDPR).

Most
data
protection
strategies
now
have
traditional
data
protection
measures,
like
data
backups
and
restore
functions,
as
well
as
business
continuity
and
disaster
recovery
(BCDR)
plans,
such
as

disaster
recovery
as
a
service
(DRaaS).
Together,
these
comprehensive
approaches
not
only
deter
threat
actors
but
also
standardize
the
management
of
sensitive
data
and
corporate
information
security
and
limit
any
business
operations
lost
to
downtime.

Why
it’s
important
for
your
security
strategy

Data
powers
much
of
the
world
economy—and
unfortunately,
cybercriminals
know
its
value. Cyberattacks
that
aim
to
steal
sensitive
information
continue
to
rise. According
to
IBM’s

Cost
of
a
Data
Breach,
the
global
average
cost
to
remediate
a
data
breach
in
2023
was
USD
4.45
million,
a
15
percent
increase
over
three
years.

These
data
breaches
can
cost
their
victims
in
many
ways.
Unexpected
downtime
can
lead
to
lost
business,
a
company
can
lose
customers
and
suffer
significant
reputational
damage,
and
stolen
intellectual
property
can
hurt
a
company’s
profitability,
eroding
its
competitive
edge.

Data
breach
victims
also
frequently
face
steep
regulatory
fines
or
legal
penalties.
Government
regulations,
such
as
the
General
Data
Protection
Regulation
(GDPR),
and
industry
regulations,
such
as
the
Health
Insurance
Portability
and
Accounting
Act
(HIPAA),
oblige
companies
to
protect
their
customers’
personal
data.

Failure
to
comply
with
these
data
protection
laws
can
result
in
hefty
fines.
In
May
2023,
Ireland’s
data
protection
authority
imposed
a
USD
1.3
billion
fine
on
the
California-based
Meta
for GDPR
violations.

Unsurprisingly,
companies
are
increasingly
prioritizing
data
protection
within
their
cybersecurity
initiatives,
realizing
that
a
robust
data
protection
strategy
not
only
defends
against
potential
data
breaches
but
also
ensures
ongoing
compliance
with
regulatory
laws
and
standards.
Even
more,
a
good
data
protection
strategy
can
improve
business
operations
and
minimize
downtime
in
a
cyberattack,
saving
critical
time
and
money.

Key
components
of
data
protection
strategies 

While
every
data
protection
strategy
is
different
(and
should
be
tailored
to
the
specific
needs
of
your
organization),
there
are
several
solutions
you
should
cover.

Some
of
these
key
components
include:

Data
lifecycle
management 

Data
lifecycle
management (DLM)
is
an
approach
that
helps
manage
an
organization’s
data
throughout
its
lifecycle—from
data
entry
to
data
destruction.
It
separates
data
into
phases
based
on
different
criteria
and
moves
through
these
stages
as
it
completes
different
tasks
or
requirements.
The
phases
of
DLM
include
data
creation,
data
storage,
data
sharing
and
usage,
data
archiving,
and
data
deletion.

A
good
DLM
process
can
help
organize
and
structure
critical
data,
particularly
when
organizations
rely
on
diverse
types
of
data
storage.
It
can
also
help
them
reduce
vulnerabilities
and
ensure
data
is
efficiently
managed,
compliant
with
regulations,
and
not
at
risk
of
misuse
or
loss.

Data
access
management
controls

Access
controls
help
prevent
unauthorized
access,
use
or
transfer
of
sensitive
data
by
ensuring
that
only
authorized
users
can
access
certain
types
of
data.
They
keep
out
threat
actors
while
still
allowing
every
employee
to
do
their
jobs
by
having
the
exact
permissions
they
need
and
nothing
more.

Organizations
can
use
role-based
access
controls
(RBAC), multi-factor
authentication
(MFA) or
regular
reviews
of
user
permissions.

Identity
and
access
management
(IAM) initiatives
are
especially
helpful
for
streamlining
access
controls
and
protecting
assets
without
disrupting
legitimate
business
processes.
They
assign
all
users
a
distinct
digital
identity
with
permissions
tailored
to
their
role,
compliance
needs
and
other
factors.

Data
encryption

Data
encryption involves
converting
data
from
its
original,
readable
form
(plaintext)
into
an
encoded
version
(ciphertext)
using
encryption
algorithms.
This
process
helps
ensure
that
even
if
unauthorized
individuals
access
encrypted
data,
they
won’t
be
able
to
understand
or
use
it
without
a
decryption
key.

Encryption
is
critical
to
data
security.
It
helps
protect
sensitive
information
from
unauthorized
access
both
when
it’s
being
transmitted
over
networks
(in
transit) and when
it’s
being
stored
on
devices
or
servers
(at
rest).
Typically,
authorized
users
only
perform
decryption
when
necessary
to
ensure
that
sensitive
data
is
almost
always
secure
and
unreadable.

Data
risk
management

To
protect
their
data,
organizations
first
need
to
know
their
risks.
Data risk
management involves
conducting
a
full
audit/risk
assessment
of
an
organization’s
data
to
understand
what
types
of
data
it
has,
where
it’s
stored
and
who
has
access
to
it.

Companies
then
use
this
assessment
to
identify
threats
and
vulnerabilities
and
implement
risk
mitigation
strategies.
These
strategies
help
fill
security
gaps
and
strengthen
an
organization’s
data
security
and
cybersecurity
posture.
Some
include
adding
security
measures,
updating
data
protection
policies,
conducting
employee
training
or
investing
in
new
technologies.

Additionally,
ongoing
risk
assessments
can
help
organizations
catch
emerging
data
risks
early,
allowing
them
to
adapt
their
security
measures
accordingly.

Data
backup
and
recovery

Data
backup
and
disaster
recovery involves
periodically
creating
or
updating
more
copies
of
files,
storing
them
in
one
or
more
remote
locations,
and
using
the
copies
to
continue
or
resume
business
operations
in
the
event
of
data
loss
due
to
file
damage,
data
corruption,
cyberattack
or
natural
disaster.

The
subprocesses
‘backup’
and
‘disaster
recovery’
are
sometimes
mistaken
for
each
other
or
the
entire
process.
However,
backup
is
the
process
of
making
file
copies,
and disaster
recovery is
the
plan
and
process
for
using
the
copies
to
quickly
reestablish
access
to
applications,
data
and
IT
resources
after
an
outage.
That
plan
might
involve
switching
over
to
a
redundant
set
of
servers
and
storage
systems
until
your
primary data
center is
functional
again.

Disaster
recovery
as
a
service
(DRaaS) is
a
managed
approach
to
disaster
recovery.
A
third-party
provider
hosts
and
manages
the
infrastructure
used
for
disaster
recovery.
Some
DRaaS
offerings
might
provide
tools
to
manage
the
disaster
recovery
processes
or
enable
organizations
to
have
those
processes
managed
for
them.

Data
storage
management

Whenever
organizations
move
their
data,
they
need
strong
security.
Otherwise,
they
risk
exposing
themselves
to
data
loss,
cyber
threats
and
potential
data
breaches. 

Data
storage
management
helps
simplify
this
process
by
reducing
vulnerabilities,
particularly
for
hybrid
and
cloud
storage.
It
oversees
all
tasks
related
to
securely
transferring
production
data
to
data
stores,
whether
on-premises
or
in
external
cloud
environments.
These
stores
cater
to
either
frequent,
high-performance
access
or
serve
as
archival
storage
for
infrequent
retrieval.

Incident
response

Incident
response (IR)
refers
to
an
organization’s
processes
and
technologies
for
detecting
and
responding
to
cyber
threats,
security
breaches
and
cyberattacks.
Its
goal
is
to
prevent
cyberattacks
before
they
happen
and
minimize
the
cost
and
business
disruption
resulting
from
any
that
do
occur.

Incorporating
incident
response
into
a
broader
data
protection
strategy
can
help
organizations
take
a
more
proactive
approach
to
cybersecurity
and
improve
the
fight
against
cybercriminals.

According
to
the
Cost
of
a
Data
Breach
2023,
organizations
with
high
levels
of
IR
countermeasures
in
place
incurred
USD
1.49
million
lower
data
breach
costs
compared
to
organizations
with
low
levels
or
none,
and
they
resolved
incidents
54
days
faster.

Data
protection
policies
and
procedures

Data
protection
policies
help
organizations
outline
their
approach
to
data
security
and
data
privacy.
These
policies
can
cover
a
range
of
topics,
including
data
classification,
access
controls,
encryption
standards,
data
retention
and
disposal
practices,
incident
response
protocols,
and
technical
controls
such
as
firewalls,
intrusion
detection
systems
and
antivirus
and
data
loss
prevention
(DLP)
software.

A
major
benefit
of
data
protection
policies
is
that
they
set
clear
standards.
Employees
know
their
responsibilities
for
safeguarding
sensitive
information
and
often
have
training
on
data
security
policies,
such
as
identifying
phishing
attempts,
handling
sensitive
information
securely
and
promptly
reporting
security
incidents.

Additionally,
data
protection
policies
can
enhance
operational
efficiency
by
offering
clear
processes
for
data-related
activities
such
as
access
requests,
user
provisioning,
incident
reporting
and
conducting
security
audits.

Standards
and
regulatory
compliance

Governments
and
other
authorities
increasingly
recognize
the
importance
of
data
protection
and
have
established
standards
and
data
protection
laws
that
companies
must
meet
to
do
business
with
customers.

Failure
to
comply
with
these
regulations
can
result
in
hefty
fines,
including
legal
fees.
However,
a
robust
data
protection
strategy
can
help
ensure
ongoing
regulatory
compliance
by
laying
out
strict
internal
policies
and
procedures.

The
most
notable
regulation
is
the General
Data
Protection
Regulation
(GDPR),
enacted
by
the
European
Union
(EU)
to
safeguard
individuals’
personal
data.
GDPR
focuses
on personally
identifiable
information and
imposes
stringent
compliance
requirements
on
data
providers.
It
mandates
transparency
in
data
collection
practices
and
imposes
substantial
fines
for
non-compliance,
up
to
4
percent
of
an
organization’s
annual
global
turnover
or
EUR
20
million.

Another
significant
data
privacy
law
is
the
California
Consumer
Privacy
Act
(CCPA),
which,
like
GDPR,
emphasizes
transparency
and
empowers
individuals
to
control
their
personal
information.
Under
CCPA,
California
residents
can
request
details
about
their
data,
opt
out
of
sales,
and
request
deletion.

Additionally,
the
Health
Insurance
Portability
and
Accountability
Act
(HIPAA)
mandates
data
security
and
compliance
standards
for
“covered
entities”
like
healthcare
providers
handling
patients’
personal
health
information
(PHI).

Related: Learn
more
about
GDPR
compliance

Best
practices
for
every
data
protection
strategy

Inventory
all
available
data

Having
secure
data
starts
with
knowing
what
types
of
data
you
have,
where
it’s
stored
and
who
has
access
to
it.
Conduct
a
comprehensive
data
inventory
to
identify
and
categorize
all
information
held
by
your
organization.
Determine
the
sensitivity
and
criticality
of
each
data
type
to
prioritize
protection
efforts,
then
regularly
update
the
inventory
with
any
changes
in
data
usage
or
storage.

Keep
stakeholders
informed

Maintain
strong
communications
with
key
stakeholders,
such
as
executives,
vendors,
suppliers,
customers
and
PR
and
marketing
personnel,
so
they
know
your
data
protection
strategy
and
approach.
This
open
line
of
communication
will
create
greater
trust,
transparency
and
awareness
of
data
security
policies
and
empower
employees
and
others
to
make
better
cybersecurity
decisions.

Conduct
security
awareness
training

Conduct
security
awareness
training
across
your
entire
workforce
on
your
data
protection
strategy.
Cyberattacks
often
exploit
human
weakness,
making insider
threats
a
significant
concern
and
employees
the
first
line
of
defense
against
cybercriminals.
With
presentations,
webinars,
classes
and
more,
employees
can
learn
to
recognize
security
threats
and
better
protect
critical
data
and
other
sensitive
information.

Run
regular
risk
assessments

Running
ongoing
risk
assessments
and
analyses
helps
identify
potential
threats
and
avoid
data
breaches.
Risk
assessments
allow
you
to
take
stock
of
your
data
footprint
and
security
measures
and
isolate
vulnerabilities
while
maintaining
updated
data
protection
policies.
Additionally,
some
data
protection
laws
and
regulations
require
them.

Maintain
strict
documentation

Documenting
sensitive
data
in
a
hybrid
IT
environment
is
challenging
but
necessary
for
any
good
data
protection
strategy.
Maintain
strict
records
for
regulators,
executives,
vendors
and
others
in
case
of
audits,
investigations
or
other
cybersecurity
events.
Updated
documentation
creates
operational
efficiency
and
ensures
transparency,
accountability
and
compliance
with
data
protection
laws.
Additionally,
data
protection
policies
and
procedures
should
always
be
up-to-date
to
combat
emerging
cyber
threats.

Perform
ongoing
monitoring 

Monitoring
offers
real-time
visibility
into
data
activities,
allowing
for
the
swift
detection
and
remediation
of
potential
vulnerabilities.
Certain
data
protection
laws
may
even
require
it.
And
even
when
it’s
not
required,
monitoring
can
help
keep
data
activities
compliant
with
data
protection
policies
(as
with compliance
monitoring).
Organizations
can
also
use
it
to
test
the
effectiveness
of
proposed
security
measures.

While
strategies
will
differ
across
industries,
geographies,
customer
needs
and
a
range
of
other
factors,
nailing
down
these
essentials
will
help
set
your
organization
on
the
right
path
forward
when
it
comes
to
fortifying
its
data
protection.

Explore
IBM’s
data
protection
solution