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Are you confident in your SMB's data security, or are you secretly worried about unseen breaches and regulatory fines? It's easy to assume everything is fine, but without a deep dive into your data, you could be sitting on a live landmine. Without stringent data hygiene practices and policies in place, your business is vulnerable to all kinds of cyber threats and costly compliance issues.
The reality is that if you don't know where your sensitive data lives and who has access, you simply can't protect it effectively. For over 25 years, I’ve been helping businesses like yours remain both compliant and protected by navigating the complexities of data security.
This article is your straightforward guide to running an effective data audit. I'll show you how to uncover vulnerabilities, classify your data, and implement robust protections. Let's explore why a data audit isn't just a nice-to-have, but a non-negotiable for your business.
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What This Blog Covers:
- The Mandate for Data Hygiene and Customer Trust
- Conducting a Data Audit
- You Can't Protect What You Don't Know
- Why Data Hygiene is the Bedrock of Regulatory Compliance
The Mandate for Data Hygiene and Customer Trust
The foundation of any successful business rests on its data. Not only do you rely on your data to inform business goals, sales strategies, and the like, but your customers depend on it as well. They essentially trust that your information is accurate and, more importantly, secure. I previously explained that data loss prevention (DLP) is mainly about ensuring that corporate data remains in your environment. In a similar vein, your customers are rightfully expecting you to have DLP in place to keep their information uncompromised and used for the right purposes.
This is where data hygiene comes into play: as you collect all this data, you need to maintain its accuracy and integrity. As an SMB that may not necessarily have thousands of customers, it's easy to assume that your data is error-free and is nestled safely in the hands of those who absolutely need access to it. But as we know, data is constantly compromised or stolen, so the health of your data isn’t something you can assume, but something you need to take constant stock of with an audit.
Conducting a Data Audit
So, what does an effective data audit entail, you ask? Well, it begins with asking fundamental questions about your data landscape:
- Where is your data stored? This includes your network, cloud services, applications, and even email and collaboration platforms like Teams and SharePoint.
- Who has access to it? Understanding user permissions is crucial for preventing unauthorised access.
- Is the data factually correct? Regular checks for accuracy ensure your decisions are based on reliable information.
- Is the data correctly classified? Knowing the sensitivity of your data allows you to apply appropriate security measures.
This might sound simple enough (some of you might think all you’ll need is a spreadsheet and an unhealthy amount of coffee), but identifying these key aspects is just the first step. Luckily, you have experts at your disposal who can conduct a comprehensive data audit by diving much deeper into your environment.
You Can't Protect What You Don't Know
Ask yourself this: "If you don't know where your data is, how do you secure it?". This fundamental question highlights the core of the data audit and is something I always ask my clients whenever we talk about data security. The reality is, that many SMBs don’t think about these things until they have to. For example, one of your closest competitors gets hacked, and suddenly the entire organisation is scrambling to protect the company data at all costs.
The Insidious Threat of Data Manipulation
Speaking of hackers, there’s a concerning trend of data not only being stolen for financial gain but also being changed and manipulated. This type of attack, where data is altered simply to cause chaos and disrupt business operations, stresses the importance of knowing what your data should look like (in addition to where it sits). If you can't identify discrepancies, you’d be none the wiser as to whether your information has been compromised or tampered with.
Common Data Hygiene Issues Leading to Security Breaches
The link between poor data hygiene and cyber security vulnerabilities is undeniable. Here are some common data hygiene issues that open the door to security breaches:
- Outdated Software & Data Formats: Running unpatched software can lead to outdated data formats, creating compatibility issues and security loopholes. Think of it as having weak spots in your digital defences: your software needs to be updated to keep the ever-evolving cyber threats at bay.
- The Shadow IT Menace: We previously spoke about the dangers of shadow IT – where data is stored on networks and platforms not officially greenlit by your IT team. Going back to the issue of not knowing where all of your data is stored, shadow IT creates ungoverned silos of information. This makes it impossible to monitor and protect your data.
- Personal Devices as a Security Risk: While it’s convenient (and cost-effective) for employees to use personal devices to store company information, the rise of Bring Your Own Devices (BYOD) in remote working environments comes at a significant security cost. This is simply because these devices often don’t have the same robust security measures as company-managed systems.
- Data Retention Chaos: For those of you who take compliance seriously, you might be tempted to hold on to data longer than necessary. However, this increases your risk exposure (as you have more data to protect), and doing so might violate some regulations. So, it’s best to have clear data retention policies from the outset.
Beyond these, it's crucial to know if your data is correctly classified and if the right people have access to it. Just like your stock and physical equipment, your sensitive data needs to be protected with appropriate access controls.
Why Data Hygiene is the Bedrock of Regulatory Compliance
If you don't know where your data is and who has access to it, how do you know you conform to regulatory compliance policies? Compliance always enters the data hygiene conversation. This is simply because the UK has stringent data protection regulations like the GDPR (General Data Protection Regulation) that make robust data hygiene practices non-negotiable. The consequences of not complying range from hefty fines to legal penalties. Moreover, without knowing where your data is, you might already be a victim of a data breach without even realising it.
Many SMB owners genuinely want to protect their businesses and comply with data regulations, but usually don’t ensure that their employees understand their compliance responsibilities. And to be fair, this compliance stuff can get pretty complicated. (But that’s where partnering with a trusted advisor who has the specialised knowledge and resources comes in.)
Navigating Unknown Compliance Risks in M&A
Something else that could jeopardise compliance is business acquisitions. Let’s say a company is fully compliant with all the regulations under the British sun, and they acquire a company with lax data practices. This immediately – and unknowingly –introduces non-compliance.
Secure Your Business with a Data Audit
When it comes to securing the future of your business and maintaining data integrity, regular data audits are a must.
Neglecting data hygiene is no longer an option, as it leaves your SMB vulnerable to unseen breaches, reputational damage, and severe financial and legal compliance penalties.
As your trusted advisor, we understand these complexities and are here to guide you through achieving compliance and protection. Partner with us to implement a comprehensive data audit.
Don't wait for disaster to strike: start by understanding exactly where your data is and who has access to it. This proactive approach protects your business and ensures you conform to regulatory policies.
