5 Reasons Your Company Needs an Encryption Strategy

Guest post by Jared Michaelson who is an expert on cloud security, business and technology. 

Codes and ciphers run the world. Cryptography can be found in many aspects of our lives. Emails, ATM cards, online shopping—all involve cryptography. Cryptography entails secret communication. The major aim of cryptography is to enable secure communication across insecure channels so that potential cyber criminals can’t understand that communication.

Many attacks have been reported in which data was stolen. For example, one of the laptops of the Hospice of North Idaho in the United States was stolen along with the health records of more than 441 patients. This single loss cost the organization more than $50,000 in fines. The good news is that loss of data and information can be prevented with a proper encryption strategy. Here are 5 reasons your company needs an encryption strategy.

1. Constant Sharing and Exchange of Your Company’s Data

At all times, data in your company is being exchanged, shared, and stored on various channels. Without proper control of data privacy and enterprise data encryption, it is possible for people with malicious intentions to access this data and information. A proper encryption strategy ensures that there are effective checks on the network and security policies. It enables you to understand the kind of data you are dealing with and come up with the best policies to protect it. This makes it possible to protect all the sensitive information and control which people can access it.

2. Protecting Data and Information in Case of Accidental Disclosure

Your company may already have adequate measures in place to protect information from external intruders; however, a sizable number of companies fail to secure data against theft and accidental access or disclosure of information that should be restricted to employees. Accidental disclosure and mishandling of sensitive data in a company can lead to undesirable outcomes. An appropriate data loss prevention policy can be used to prevent accidental access of data among company employees. An encryption policy can be used to ensure that even when an unauthorized user stumbles on some data or information, they cannot decipher the actual content.

3. Preventing Fines and Loss of Revenue

A high frequency of data breaches has been witnessed lately. Data breaches come with liabilities, negative exposure, lost revenues, legal action, and fines. Furthermore, loss of customers also negatively impacts the company. With a proper encryption strategy in place, such events can be avoided. For example, random checks will show the weak points and rectify them before a breach. When the stolen data is encrypted, it will be of no use to the attackers unless they decrypt it. This means that no secret or confidential data is released, which leads to fewer fines.

4. Complying With Regulations

Many countries have set up regulations and laws that require the protection and safeguarding of sensitive information. During a security audit, you want to ensure that your company is fully complying with these regulations. Failure to comply may lead to any of a number of different authoritative actions against you. These actions can include penalties and even closure in some instances.

5. Increased Competitiveness

A well-implemented encryption strategy can be used to enhance a company’s competitive advantage by raising brand value and reputation. Any confidential data loss, whether through targeted attacks or employee errors, can damage beyond repair a company’s shareholder value, brand, and reputation. Data loss prevention and an encryption strategy facilitates the protection of your company’s most vital information, including trade secrets, helping you maintain a competitive advantage.

Safeguarding sensitive and confidential data is not just an option anymore. It’s now a necessity. Failure to safeguard data makes you susceptible to dire consequences such as government fines, negative publicity, and financial losses. With an encryption strategy in place, it is possible to secure data and avoid the potentially catastrophic effects of data loss.

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