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Risks and benefits of having adequate data protection in place

By: Cristina Antequera

June 22, 2023

As the world becomes increasingly digitized, it is important to understand both the risks and benefits of having adequate data protection in place.

Data protection is a fundamental right, but what happens to all the information we share? Sometimes, without even realizing it, we are sharing sensitive information, from photos and posts on social networks to location data or financial information, leaving more and more digital traces.

In many Latin American countries there are laws and regulations to protect our privacy and personal data. These regulations provide the advantage of allowing users to exercise their rights of access, rectification, cancellation and opposition to their data. 

For companies, a well-structured data protection policy includes significant benefits such as:

  • Better information management: including homogeneous processes for data collection, storage, processing and deletion, allows companies to optimize their operations.  
  • Generation of trust in customers and users.
  • Increased competitiveness: Compliance with specific regulations, such as the General Data Protection Regulation (GDPR) in the European Union, can provide international business opportunities.

However, the right to data privacy faces various challenges and risks, such as the lack of adequate legislation or legislative harmonization, and the misuse of data by public and private actors. 

In Latin America, the different countries are working on the harmonization of data protection standards to improve the existing regulatory dispersion and adaptation to the European legal framework.

Regarding data misuse, regulatory laws encourage transparency and accountability of companies that collect and handle data, forcing them to be clear about how they use and treat the information of their employees and customers. Companies thus face the challenge of bringing their data protection policy in line with the relevant regulations, as non-compliance can lead to various penalties and legal consequences, which may include:

  • Financial fines by data protection authorities.
  • Corrective measures and compliance obligations by the data protection authorities.
  • Civil liability and lawsuits against the company by the affected individuals.
  • In serious cases, prohibition of data processing: the company would not be able to use or access users’ personal data, which could have a significant impact on its business.

In short, data protection brings significant advantages, but it also entails certain risks.

If you are a company, ClarkeModet can be your perfect ally in the protection of personal data, adapting your data protection policy to the current legislation or preparing for the new legislation that will be approved soon; in this way, you will be able to avoid sanctions. 

Our extensive presence in Latin America provides our experts with a deep knowledge of data protection regulations.

Do not wait any longer and request your advice by sending an email to consultancy@clarkemodet.com to find out how we can help you.

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