However, as data consumption increases, concerns over data security, privacy, and compliance have come into sharper focus, grabbing both consumers' and authorities' attention. As a result, stringent laws like the GDPR and CCPA have been put in place to set requirements for businesses that want to operate both domestically and abroad.
While this indicates that more companies are taking data compliance seriously, many continue to ignore third-party suppliers' data privacy policies and track records of compliance, sometimes only giving them due consideration at the very end of the purchasing process. For organisations that still rely on their vendors' data compliance, this might be a bad surprise: a vendor's lack of compliance could jeopardise a business's own.
In other words, businesses cannot rely only on their own data compliance. They are obligated to guarantee the compliance of their suppliers. Here are some reasons why companies should investigate potential third-party providers before dealing with them.
The nature of vendor data compliance
Organisations' own adherence to data-related rules can be harmed by the data and compliance, or lack thereof, of third-party vendors, possibly having a severe detrimental impact on their business.
Exactly why? Regardless of where it originates from, incomplete, incorrect, or noncompliant data can swiftly result in poorly informed strategic and operational choices that can harm a company's productivity, reputation, and bottom line.
For instance, it becomes extremely simple to waste effort, lose time and money, and even harm a brand's reputation if your sales staff are working with inaccurate data and contacting customers who don't want to be reached, are no longer relevant, or have obsolete contact information. Additionally, it's critical to work with a reliable and compliant vendor because businesses may be punished for using data in violation of compliance laws and subject to fines.
What organizations can do about it
A company's compliance record is only as strong as its weakest link, therefore before working with any partners or suppliers, they must thoroughly screen and authorise them. They should also audit their current vendors to ensure that they are data compliant.
Organisations must achieve this by conducting the necessary research and taking the following safety measures:
First and foremost, confirm that your providers adhere to any applicable laws or certifications, such as GDPR, CCPA, ISO, TRUST-e, and IAPP, the more of which the better. This not only demonstrates that a business takes data privacy seriously, but it also expands the possible uses for data (GPDR compliance = EU reach).
After certifications have been verified, organisations need to know how a certain vendor utilises their data. Is it selling this data indefinitely or just giving temporary access to licenced data? Does it offer client information to outside parties? What sources does it use for its data, and how is it gathered and stored? A vendor can't be relied upon to be truthful or comply with compliance standards if they can't maintain their data sharing and usage practises legal.
Business as usual in the data age
Data privacy and security are necessities in the modern world. They are essential, particularly given the importance of data itself. Therefore, organisations must prioritise data-related challenges if they hope to function successfully and safely in the global economy. This is true of both their own internal data policies and the practises of their suppliers.
Organisations may get the confidence that their business operations are entirely up to standard and compliant by asking the proper questions and making sure that their partners are equally committed to data compliance as they are.
