All companies possess, collect, process, use, and disclose sensitive data.
Often such data constitutes the core value of a business. A founder must keep the business moving and protect the critical value that regulated forms of data —such as identifiable consumer information, employee data, and financial, health, children’s or defense data—can provide. Where sensitive data, technology, and business models come together, there is profound opportunity for a breach or a hack from bad actors. It is vital to protect such key assets and operations by ensuring that practices conform with privacy and security laws.
It is challenging to navigate the U.S. and global legal regimes governing data privacy and security. Businesses focused on developing compliant, data-driven business models and practices have a competitive advantage. It is helpful to understand whether your business model requires engagement with regulators, customers, and business partners. Startups should consider developing security best practices, planning for handling data incidents, and conducting table-top exercises for various scenarios to address questions and improve data practices.