Data protection, known as information privacy, is a process of securing data from the loss, corruption, or compromise. There are key pieces of information that need to be protected and stored by businesses. The data includes customer details, transaction details, data collection, loyalty schemes, and employee records.

1. What Is Data Protection And Why It Is
Important For Business?
Data protection, known as information privacy, is a process of securing data from
the loss, corruption, or compromise. Data Protection Act of 1998 and 2018 was
followed until the General Data Protection Regulation came into effect on the
25th of May, 2018. Presently, GDPRrules the data protection activities of the
businesses.
What Data Need To Be Protected?
There are key pieces of information that need to be protected and stored by
businesses. Thedata includes customer details, transaction details, data
collection, loyalty schemes, and employee records. The data is protected from
the third party who may interfere or misusethe data.
The data that is commonly stored include:
 Names
 Telephone Numbers
 Bank details

2.  Credit card Details
 Health Information
 Addresses
Why Is It Important for Business?
Data protection has become essential because of a variety of reasons. If thedata
is compromised, it will end in the financial losses of the organization and the
users. So, the following are the top reasons for which data protection has become
important:
1. Minimization of Financial Loss
Hackers can access the data, and compromisethe security of data, demanding a
ransomfor the release of the data. Third parties carry out fraudulentactivities
such as identity theft and phishing scams. Identity theft means people acquire
credit card pins, passwords, and personaldetails for financial gains. The phishing
scams are also financial loss wherein people post as legitimate institutions and
lure people to disclosetheir financial details. Thus, data protection minimizes the
financial loss. When the data is protected, these threats are reduced to a greater
extent.
2. Regulatory Requirements
There are many acts that the business mustfollow while dealing with the
information of the users. Data Protection Act requires businesses to comply with
their regulations. So, it has become necessary for the business to comply with the
businesses.
Benefits of Data Protection
The following are the top benefits of data protection:

3. 1. Trusted Relationship with Consumer
If you comply with the GDPRrules and regulations, your organization ensures the
consumers thatit is a good custodian of the data. With the data protection officer
(DPO), regular auditing of the data is carried out. Besides this, the organizations
also ensurecompliance with the data protection principles under the GDPR. So,
the organization builds a trusted relationship with the customer.
So, customers providedata to the organization and work with them exuding great
trustand confidence.
2. Enhanced Data Security
In the UK, cybersecurity breaches arelooming on the enterprises. 68% of large
firms have been attacked by hackers. Thesophistication of the cyber-attacks is
increasing day by day, so the businesses aretaking moresteps to securethe data.
When the organizations usethe privileged and identity access management
mandated by the GDPR, only a few professionals areallowed to work with the
critical data in your organization. Thus, a GDPR-compliantframework extends the
cybersecurity practices and improves the overall data security of the organization.
3. Reduced costs of Data Maintenance
As the organizations align with the regulations mandated by the GDPR, the data
security breaches are averted. The overall costs of the data are reduced as the
information is consolidated on a single platform. Thus, data protection is
beneficial for organizations.
Conclusion
Businesses follow essential principles of data protection, which are related to
fairness, legal issues, and human rights. Businesses mustfair lawfully and fairly,
take into accountall the essential people’s rights and data protection policies.
Thus, data protection is undertaken by businesses allaround the world.

4. As the organization ensures compliance with GDPR, it goes towards the
improvement of network, application, and endpoint security.