The growing importance of data privacy
In today’s digital economy, data is one of the most valuable assets for businesses and individuals alike. However, as data collection and usage grow exponentially, so do concerns about privacy and security. How can organisations and individuals safeguard sensitive information? This article explores the key threats to data privacy and the role of regulations such as PDPL & GDPR, as well as practical solutions to ensure data security. Its objective is to ensure that decision-makers have a clear understanding of why a proactive approach to data privacy is essential - and how BDO’s expertise can help businesses stay ahead of evolving risks.What are the biggest threats to data privacy?
Cyber threats are increasing in scale and sophistication. Organisations of all sizes face a range of risks, such as cyberattacks and data breaches. Cyberattacks are when hackers use phishing, ransomware and malware to steal or compromise data, while data breaches involve unauthorised access to sensitive customer and business data that can result in financial and reputational damage. Other risks that highlight the urgent need for robust data protection measures are simple human error – when employees unknowingly expose data by falling for scams or mishandling information - and third-party risks, because many businesses rely on vendors and cloud services, increasing the risk of data leaks.How do data protection laws help?
Governments worldwide have implemented data privacy regulations to protect individuals and hold businesses accountable. Key laws include:- PDPL (personal data protection law): the Kingdom of Saudi Arabia (KSA) has introduced PDPL frameworks that emphasise data sovereignty, consent and organisational compliance
- GDPR (general data protection regulation): in the European Union (EU), this is a comprehensive framework for data protection that sets strict guidelines on data collection, processing and consent
- Other global regulations: any countries and regions have introduced similar laws to enhance data security and privacy.
What can businesses do to strengthen data privacy?
Proactive organisations prioritise data privacy by implementing strong security frameworks. Key strategies include:- Data encryption – Ensuring sensitive data is protected both in transit and at rest
- Regular security / privacy audits – Identifying vulnerabilities and strengthening weak points
- Educate staff – Educating staff on cybersecurity best practices to reduce human error
- Transparent data policies – Clearly communicating how customer data is collected and used
- Privacy-enhancing technologies (PETs) – Leveraging AI, anonymisation and blockchain to improve security.
How can individuals protect their personal data?
While businesses must ensure compliance and security, individuals also play a crucial role in protecting their own data. Best practices include using strong passwords - that is, unique, complex passwords that reduce the risk of unauthorised access, together with enabling multi-factor authentication (MFA), which adds an extra layer of security beyond passwords. Other sensible practices include being cautious with emails & links, because phishing scams remain one of the biggest threats, and updating privacy settings in order to limit the amount of personal data shared online. Regularly monitoring accounts so that suspicious activity can be detected and responded to promptly is another good habit that will significantly reduce the risk of personal data breaches.The future of data privacy: What’s next?
As cyber threats evolve, so must data privacy strategies. Emerging trends include:- Artificial Intelligence (AI) – AI-driven solutions enhance threat detection and response
- Decentralised identity management – Reducing reliance on central databases that are prime targets for hackers
- Stronger regulatory frameworks – Governments are expected to introduce even stricter data privacy laws, including expanded enforcement of PDPL and GDPR-like regulations in emerging markets.
Taking action for a more secure digital world
The importance of data privacy cannot be overstated. As threats grow and regulations tighten, organisations must take a proactive approach to protect sensitive information. By implementing strong security measures, staying informed about evolving threats and fostering a culture of data protection, businesses can safeguard both their reputation and their customers.
At BDO, we help businesses navigate the complexities of data privacy with expert insights, compliance strategies and advanced security solutions. The question is: Are you doing enough to protect your data? Now is the time to take action. Please reach out to the relevant partner in your local BDO firm for further information.
Author:
Shoukat Shah, Senior manager – IT Risk Advisory, BDO in Saudi Arabia