The Rising Tide of Privacy Risks

In 2025, data is both a valuable asset and a significant liability. With privacy regulations tightening worldwide and consumer expectations at an all-time high, businesses must take privacy risk management seriously - or face the consequences. From consequential fines to reputational damage, the risks of mishandling privacy are growing. But how can organizations stay ahead in an increasingly complex privacy landscape?

The Growing Privacy Risk Landscape

Stricter Regulations Worldwide

One of the most pressing challenges businesses face today is the increasing number of global data privacy regulations. Laws such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States have set high standards for data protection, requiring organizations to handle personal information with greater transparency and security. Other countries have also introduced similar regulations, making compliance a worldwide concern. Failure to adhere to these laws can result in severe financial penalties. For instance, under GDPR, organizations can face fines of up to 20 million euros or 4% of their global annual revenue, whichever is higher.¹

Rising Consumer Expectations

In addition to regulatory pressures, consumer expectations around privacy are evolving. A study by Cisco (2023) found that 87% of consumers say they will not do business with companies they do not trust to protect their data. This shift in consumer sentiment underscores the importance of privacy as a competitive differentiator rather than just a compliance requirement. Businesses that fail to implement strong privacy protections risk losing customer trust, which can directly impact revenue and brand reputation.²

Increased Cyber Threats

Organizations that lack a robust third-party risk management strategy - which includes privacy risks - are particularly vulnerable to cyber threats and breaches as cybercriminals often exploit weaker security measures in a company's vendor ecosystem. The importance of this is seen in the rising cost of security breaches. According to IBM 2023 Cost of a Data Breach Report, the average cost of a data breach reached $4.45 million, the highest in the study's history. One of the most concerning threats is that over 60% of these breaches originate from third-party vendors, highlighting the growing importance of managing supply chain risks from all risk dimensions.³

How Organizations Can Take Control of Privacy Risks

To effectively navigate privacy risks, organizations need to invest in a comprehensive privacy risk solution to stay ahead. This is where RiskRecon steps in. RiskRecon is uniquely positioned at the intersection of cybersecurity and privacy, offering the first solution to provide a broad view across multiple risk dimensions. Analyzing six critical domains, we equip organizations with actionable insights to make informed decisions on their vendors' privacy practices, ultimately strengthening data governance and building customer trust.

Interested in monitoring the privacy risks of your vendors? Request a demo of RiskRecon Privacy Risk Rating today.