Businesses can no longer afford to focus only on their own privacy measures. With growing data privacy risks, organizations need to better understand the privacy measures of their third-party vendors, suppliers, and partners, as these sometimes represent some of the weakest links in their privacy framework. In fact, according to the Ponemon Institute, 59% of companies have experienced a data breach caused by a third party or one of their vendors with whom they have shared sensitive information. With regulations like GDPR enforcing stricter penalties, businesses must proactively assess and monitor privacy risks across their entire vendor ecosystem.
How confident are you that your third-party vendors comply with privacy standards and regulations? This is where a privacy risk rating solution steps in.
What is a privacy risk rating solution?
A privacy risk rating is a data-driven evaluation that assesses how effectively a company safeguards personal and sensitive information. This evaluation provides detailed scores and actionable insights across multiple dimensions, enabling organizations to better understand their privacy posture. A Mastercard working group found that 91% of companies intend to evaluate their vendors' compliance with privacy regulations and their ability to protect client data, which is precisely what a privacy risk rating solution accomplishes.
What does a privacy risk rating solution monitor?
A privacy risk rating solution provides insights across a wide range of critical factors, including but not limited to:
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Data Subject Rights: ensures that the required privacy rights for a specific privacy notice are included.
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Communication Encryption: examines if the data collected on websites is safely encrypted during collection and transit.
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Geolocation (Sanctioned Country Data Hosting): determines if personal information is sent or stored in the European Union, United Kingdom, United Nations, or an Office of Foreign Assets Control (OFAC) sanctioned country known to have comprehensive or import and export sanctions related to technology or telecommunications.
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Breach Events and Enforcement Actions: indicates whether there has been a public enforcement action regarding a company's mishandling of personal data.
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Consent Management System: determines if there is a consent management (opt-in/opt-out) system present for customers to specify how and with whom their personal information will be shared
How do privacy risk ratings help organizations stay ahead?
Privacy risk ratings provide businesses with a real-time view of vendor privacy risks, helping them make informed decisions about who to trust with sensitive data. Most importantly, strong privacy practices make an organization stand out from the competition and establish it as a market leader. Here are several benefits that privacy risk ratings provide:
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Maintain customer trust.
Privacy is the foundation of trust. By prioritizing the protection of customers' personal information, organizations can build trust, loyalty, and enduring business relationships, which ultimately enhance brand reputation and provide a competitive edge.
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Enhance data governance.
Privacy is an essential component of comprehensive data governance. By incorporating privacy into risk assessments and data management strategies, organizations can create a strong framework for identifying, mitigating, and managing potential risks. This proactive strategy helps protect businesses by maintaining the integrity and confidentiality of sensitive data.
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Gain a competitive edge.
In today's market, privacy serves as a key differentiator. As customers grow more concerned about data security, they tend to favor businesses that prioritize privacy. By making privacy a fundamental value, organizations can secure a competitive advantage, draw in privacy-aware customers, and explore new growth opportunities.
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Navigate the compliance landscape.
Gain insights into privacy regulations and standards, such as GDPR and CCPA, to better understand risks and potential penalties linked to non-compliance.
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Uphold ethical responsibility.
Valuing privacy rights demonstrates your dedication to treating customers with respect, dignity, and fairness. By adhering to privacy principles, organizations help create a safer and more equitable digital environment.
What makes RiskRecon's Privacy Risk Rating solution unique?
RiskRecon is uniquely positioned at the intersection of cyber and privacy: the first solution offering a broad view across multiple-risk dimensions. When it comes to assessing the privacy risk of your vendors - test, don't guess! Leverage RiskRecon Privacy Risk Rating to continuously monitor your third parties' privacy risks and eliminate the guesswork.
Click on the button below to schedule a demo of RiskRecon Privacy Risk Rating and to learn more about privacy risks.
