Data Protection 101: What is data protection?

What is data protection?

The concept of data protection encompasses the collection, usage, and storage of personal information, as well as disclosure or transfer of personal data (or CUDS in short). The digital age has made personal data the lifeblood of businesses and the economy as people freely share data and information on a daily basis through cloud providers. To prevent unauthorised use of the personal information of individuals by organisations, data privacy laws were introduced in many jurisdictions worldwide, such as Europe's General Data Protection Regulation (EU GDPR), Singapore's Personal Data Protection Act (PDPA), the Philippines' Data Privacy Act (DPA), and Malaysia's Personal Data Protection Act (PDPA).

To learn more about compliance with regulations, check this link on the additional offences under the PDPA that could get you into trouble.

Data protection laws require organisations that handle personal data to demonstrate accountability and responsibility. To be operationally compliant with the laws, organisations should have a data protection management programme (DPMP) in place to translate the requirements of the law into their business practices. The person assigned to handle these security practices and a company's protection strategy is a Data Protection Officer (DPO).

Data Protection: Risks Equal Opportunities

What are the 7 principles of Data Protection?

The evolution of data protection laws, originating from public concerns about privacy and misuse of information, has led to the establishment of core principles that guide how organisations should handle personal and sensitive data. Understanding these principles is crucial for maintaining trust, ensuring legal compliance, and protecting the integrity of valuable information. As part of the discussion on Data Protection 101, here are seven fundamental principles of data protection.

1. Lawfulness, Fairness, and Transparency

Data must be processed lawfully, fairly, and in a transparent manner. Organisations should be clear about why they are collecting data and how it will be used. This includes obtaining consent from individuals when necessary and ensuring that they understand their rights regarding their personal information.

2.Purpose Limitation

Data should only be collected for specified, legitimate purposes and cannot be processed in a way that is incompatible with those purposes. This principle encourages organisations to clearly define the reasons for data collection and to avoid using data for unrelated objectives.

3. Data Minimisation

Only the minimum amount of data necessary to achieve the stated purpose should be collected and processed. This principle not only reduces the risk of exposure in the event of a data breach but also respects individuals' privacy by limiting the amount of personal information collected.

4. Accuracy

Organisations are required to take reasonable steps to ensure that personal data is accurate, complete, and kept up to date. If data is found to be inaccurate or incomplete, it should be rectified or deleted promptly, as inaccuracies can lead to unfair treatment or harm to individuals.

5. Storage Limitation

Personal data should only be retained for as long as necessary to fulfill the purposes for which it was collected. Once the data is no longer needed, it should be securely deleted or anonymised to reduce the risk of unauthorised access or breaches.

6. Integrity and Confidentiality

Organisations must ensure that personal data is processed securely, protecting it from unauthorised access, loss, or damage. This principle emphasises the importance of implementing appropriate technical and organisational measures, such as encryption and access controls, to safeguard data integrity.

7. Accountability

Organisations are responsible for demonstrating compliance with data protection principles. This includes maintaining documentation, conducting regular audits, and training staff on data protection policies and practices. Accountability ensures that organisations not only adhere to regulations but also foster a culture of data protection within their operations.

Best Practices for Data Protection

Along with principles, data protection experts have also identified some best practices on compliance measures:

1. Implement strong access controls through multi-factor authentication (MFA) and limit data access based on job roles, ensuring employees access only the information necessary for their tasks.

2. Keep all software, applications, and systems updated to protect against vulnerabilities that could be exploited by cybercriminals.

3. Use encryption protocols for data stored on servers and transmitted over the network, adding a layer of protection against unauthorised access. For sensitive communications, implement end-to-end encryption to safeguard data from interception.

4. Regularly evaluate your systems for potential vulnerabilities and threats to identify areas for improvement through simulated cyberattacks to test your defenses and response capabilities, allowing you to address weaknesses proactively.

5. Create and document policies that outline data handling, storage, and sharing protocols within the organisation. Regularly train staff on data protection best practices, including recognising phishing attempts and understanding compliance regulations.

6. Implement scheduled data backups to ensure that critical information can be restored in the event of a breach or loss incident, while also storing backup copies in a secure, offsite location or use cloud-based solutions to mitigate risks associated with physical disasters.

7. Keep abreast of relevant data protection laws and regulations (such as GDPR, CCPA) to ensure compliance and avoid penalties.

8. Establish a clear incident response plan outlining steps to take in the event of a data breach, to be implemented by a dedicated incident response team.

9. Implement robust logging systems to track access to sensitive data, with automated alerts for suspicious activities or anomalies in data access patterns to respond swiftly to potential breaches.

10. Lastly, encourage organisational leaders to prioritise data protection, setting a strong example for all employees.

DPOs help create a culture of security, maintaining compliance, and employing robust protective measures, so that organisations can minimise the risks associated with data breaches and ensure the trust of their clients and stakeholders remains intact. In an era where data drives decisions, knowing how to protect information is not just a responsibility; it is a necessity.

What does a Data Protection Officer do?

A DPO is essential in today's environment as digitalisation has made it convenient for organisations to collect and analyse data, exposing sensitive information to security issues, vulnerabilities, risks that may not be factored in the organisation's overall governance, risk management and compliance strategy. An example of this vulnerability is gathering sensitive information and storing it in cloud platforms.

The main responsibility of the DPO is to assist the organisation in governing how personal data is being collected, used, disclosed, or stored within an organisation according to the requirements of data protection laws. If there are gaps in the operations that handle the processing of personal data, the DPO works with the relevant departments to ensure that there are adequate controls to mitigate the potential risks and rectify the gaps. They also work with the relevant departments to ensure that the organisation's privacy policy, security strategy, and data protection training are updated and communicated to staff.

What does a Data Protection Officer do?

What Qualifications Do You Need to be a DPO?

The data protection laws of many countries require organisations handling personal data to demonstrate accountability and responsibility. Although a DPO does not necessarily have to be a trained legal professional, the qualification for a data protection officer includes having sufficient data protection knowledge to assist the organisation in achieving operational compliance and in implementing good data protection practices within the organisation's business processes. More so, a DPO is likewise expected to be proactive in upskilling on laws and best practices.

In Singapore particularly, a data protection officer is expected to know privacy regulations specific to the country, such as the PDPA. This is an example of the legal requirement call for data protection officers to have expert understanding of compliance regulations.

To learn more about data protection and become a qualified DPO, sign up for our Advanced Certificate in Data Protection Operational Excellence or check out our articles below to find out more on the best choice for your DPO journey:

1. What does it take to be a Data Protection Officer?

2. What is the learning roadmap for those who wish to be a DPO?

3. What is the academic certificate route for a DPO?

What Organisations Need to Have a DPO?

As a business owner, do I need a data protection officer?

Simply, yes. All organisations that handle personal data, including their own employees' personal data, need to hire a DPO.

Other than that, the pandemic has turbocharged the digital transformation for many organisations. Companies were forced to adapt to the wave of change in delivering products and services, as well as adapt to the new remote working concept. However, digital transformation comes with digital risks and vulnerabilities - both from a security and a privacy perspective. Privacy professionals can help the organisation to transition through the change and ensure that new data protection measures are implemented to address these new risks.

A yearly data protection trends forecast released by DPEX Network based on research for people in the data protection industry helps  DPOs and organisations c to better understand the data protection and privacy challenges that may arise and plan their cybersecurity practices. To read the full report for 2024, visit 5 Trends That Will Shape the Future of Data Protection in 2024.

Can the duties of the DPO be outsourced?

Resources at the company may be stretched thin by the pandemic and therefore outsourcing a DPO may be considered. However, they should be mindful that the role of the DPO can be outsourced but the responsibility and accountability to their stakeholders still lie with them. The appointment of a data protection officer should be approached with careful consideration and due diligence. While outsourcing can alleviate some of the burdens, it is crucial to ensure that chosen external privacy professionals understand the specific regulatory requirements and the unique data landscape of the organisation.

1. How can software support WFH data protection risks in organisations?

2. Sustaining your Data Protection Management Programme: How to do it?

What is Data Protection-as-a-Service (DPaaS)?

Effective data protection practices enhance customer trust and maximise a businesses' value. Hence, the Infocomm Media Development Authority (IMDA) introduced the DPaaS@SMEs programme to aid SMEs in the critical components of basic data protection functions within the organisation's processes and strengthen their overall data protection capabilities.

DPaaS can be an integrated bundle of data protection services that enable organisations to train their DPO and set up a Data Protection Management Programme (DPMP) with the data breach management function included. It could also include outsourced advisory support towards operational compliance with data protection requirements. This programme is a great first step for organisations to pursue improved, data-centric security.

Hopefully, this data protection 101 guide has helped make the concept easier to grasp and understand, especially for aspiring DPOs. Keep a lookout and join our regular data protection webinars where we bring professionals in our data protection community together to discuss, share, and learn insights to drive data protection excellence within organisations.