Privacy is “mission-critical” for 90% of organisations, Study

91% indicated that external privacy certifications are important in their buying process

Privacy is “mission-critical” for 90% of organisations, Study - CIO&Leader

Privacy has become a business imperative and a critical component of customer trust for organizations around the world. For the second year in a row, 90% of the respondents said they would not buy from an organization that does not properly protect its data, and 91% indicated that external privacy certifications are important in their buying process, according to a study published by CISCO.

The COVID-19 pandemic further strengthened privacy’s role, as 91% of organizations said their privacy teams have helped them deal with the many complex workforce personal data issues that have arisen in the past few years. Perhaps it is not surprising then that 92% of organizations said that respecting privacy is integral to their culture

“Privacy continues to rise in importance for organizations, regardless of their size or location,” said Fady Younes, cybersecurity director, Cisco Middle East, and Africa.

Privacy’s Return on Investment (ROI) remains high for the third straight year, with respondents estimating their ROI to be 1.8 times spending on average.

The report also showed that more than 60 percent of respondents felt they were getting significant business value from privacy, especially when it comes to reducing sales delays, mitigating losses from data breaches, enabling innovation, achieving efficiency, building trust with customers, and making their company more attractive.

Privacy legislation continues to be very well-received around the world, with 83 percent of all corporate respondents stating that privacy laws have had a positive impact, and only 3 percent indicating the laws have had a negative impact.

As governments and organisations continue to demand further data protection, data localisation requirements are increasing – 92 percent of survey respondents said this has become an important issue for their organisations, while 88 percent said that localisation requirements are adding significant cost to their operations.  

In terms of data usage, 92 percent of survey respondents recognise that their organisation has a responsibility to use data responsibly only, and 87 percent believe they already have processes in place to ensure automated decision-making is done by customer expectations.

However, Cisco’s ‘2021 Consumer Privacy’ survey showed that many individuals still want more transparency – 56 percent are concerned about the use of data in AI and automated decision-making and 46 percent felt they cannot adequately protect their data because they do not understand what organisations are collecting and doing with their data.

Key Takeaways From the Report Include:

  • Privacy has become essential to organizations’ culture and business practices, including their buying processes, management metrics, and employee areas of responsibility.
  • Privacy’s Return on Investment (ROI) remains high for the third straight year, with increased benefits, especially small-to-medium-size organizations, and higher ROI for more privacy-mature organizations.
  • Most organizations recognize their responsibility to treat data ethically, but many customers want more transparency and are concerned about the use of data particularly in Artificial Intelligence (AI) and automated decision making.
  • Data localization requirements are seen as important but costly.
  • Aligning privacy with security seems to create financial and maturity advantages, compared to other organisational models.

 


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