It became clear during our discussions that with regulations tightening, the data landscape changing, and consumer trust withering, the role of a Data Privacy Officer (DPO) has
never been more essential.

In
this article, I’ll explore why DPO is a business-critical role, dissecting its
key responsibilities and how DOPs safeguard the trust of customers and
stakeholders. You can also view the video above, where I explain some of the key highlights from the article.

Understanding the data landscape

As
digitization increases, the volume of data processed by businesses is
skyrocketing. The volume of data created, captured and consumed worldwide has more than
doubled since 2020, reaching 147 zettabytes in
2024—one zettabyte equivalent to a billion trillion bytes.

This
data flows through organizations like a digital circulatory system and
encompasses everything from personal information to financial records. If it
isn’t handled correctly, businesses and individuals alike are at great risk,
especially in a world where cyber threats loom large.

While
there are three main types of regulated data (health, financial and consumer
data), the rise of AI is creating new classes and subcategories, like biometric
data. To keep satisfying regulatory requirements, organizations need to keep up
with these developments.

The evolution of data privacy

With
high-profile data breaches making headlines and regulatory bodies imposing
hefty fines for non-compliance, your organization can’t afford to overlook the
importance of data privacy.

Governments
worldwide have responded to growing privacy concerns with new regulations aimed
at safeguarding individuals’ data rights. Examples include the European Union’s
General Data Protection Regulation (GDPR), California’s Consumer Privacy Act
(CCPA) and Brazil’s General Data Protection Law (LGPD).

Most
recently, on February 28, 2024, The White House issued Executive
Order (EO) 13873, which seeks to prevent certain
countries from accessing Americans’ sensitive personal and government data.

With
new regulations constantly cropping up, unprepared organizations could be at
risk of non-compliance. When speaking with Annmarie about this issue, she told
me, “With AI and IoT, there are mountains of new data that are being
collected and processed. These impact many legal obligations and could leave
organizations feeling blindsided. A good example is how this boom of
information means that previously unprotected data types will likely become
mandatory to protect in the near future. This could include anything from
photographs to search data—but whatever it is, businesses must be able to keep
up.”

In
this ever-changing regulatory minefield, the DPO has become a cardinal role,
overseeing organizations’ data privacy efforts and guiding them toward
compliance and accountability.

Understanding the role of a DPO

At
its core, the role of a DPO is to ensure that an organization’s data-handling
practices comply with relevant laws and regulations. This involves:

• Developing and implementing policies
• Conducting risk assessments
• Monitoring compliance across all aspects of data
  processing

Your
DPO also serves as a point of contact for regulators and data subjects,
handling inquiries and facilitating communication regarding privacy matters.
With that in mind, there are six key things a DPO does that make them
business-critical.

1. Identifying data points

One
of your DPO’s key responsibilities is to identify and classify the various data
points within an organization’s ecosystem. This entails conducting
comprehensive data audits to map out the flow of information across different
departments and systems.

By
understanding what data is collected, how it’s processed, and where it’s stored,
a DPO can assess potential vulnerabilities and implement appropriate measures.

2. Managing stored data

Effective
data management is essential for maintaining privacy and security. But with new
rules and regulations occurring all the time, it can be difficult to manage
this stored data.

Your
DPO ensures that data is handled in compliance with all current regulatory
requirements. This includes implementing robust encryption measures, access
controls and data retention policies to mitigate the risk of unauthorized
access or data breaches.

Additionally,
a DPO oversees data
lifecycle management, ensuring that data is handled
properly at every stage, from creation to deletion. Not only does this maintain
data quality, it also improves processes and efficiency.

3. Ensuring compliance

Compliance
with data protection regulations is non-negotiable in 2024. Your DPO acts as a
conduit between your organization and any regulatory authorities, ensuring that
all requirements are met and that any breaches or incidents are promptly
reported.

This
involves staying up-to-date on regulatory developments, conducting regular
audits and carrying out measures to address any compliance gaps. By staying
abreast of evolving regulations and industry standards, your DPO helps you
navigate the complex terrain of data privacy.

4. Implementing privacy by design

Privacy
by Design is the principle that privacy
should, by default, be seamlessly integrated into technology, products and
services. It advocates that protecting customer data is as fundamental as the
functionality of the product itself.

A
DPO maintains Privacy by Design by integrating privacy considerations into
every stage of a product’s or service’s lifecycle. This involves:

Collaborating with cross-functional teams to
identify potential privacy risks

Putting privacy-enhancing measures and controls in
place from the get-go

Ensuring that data protection principles are
fundamental aspects of all systems and processes

5. Fostering a culture of data
privacy

Beyond
regulatory compliance, a DPO is pivotal to fostering a culture of data privacy
within organizations. The latter is as important as the former because people
are your first line of defense.

Alarmingly,
82% of
data breaches involve human error, like
clicking on a phishing link. If your employees aren’t aware, it won’t matter
how many regulations you follow.

By
raising awareness among employees about the importance of safeguarding
sensitive information, DPOs encourage privacy-conscious behavior and instill a
mindset of accountability and responsibility across the entire organization.

6. Building trust and reputation

It’s
important to recognize that as data collection is escalating, the trust people
have in businesses is eroding. 81% of
Americans say that the risks they face
from companies collecting data far outweigh the benefits, and a further 79% are
concerned about how these companies are using their data.

Building
trust with consumers is crucial to assuaging their fears. Enter your DPO,
skilled at preserving the reputation and integrity of your organization. By
helping you demonstrate a commitment to transparency and data privacy, a DPO
enhances your ability to gain customer trust.

In
turn, this gives you a competitive edge. According
to McKinsey, organizations that build
digital trust outperform ones that don’t, being more likely to see a 10% annual
growth rate. Additionally, 40% of consumers have stopped buying from a business
after learning it had poor data privacy, once again highlighting the importance
of a DPO’s work.

A final thought

In
2024’s digital economy, there’s no getting away from data-driven innovation and
the new regulatory requirements it precipitates.

Rather
than facing this ever-changing landscape alone, businesses must recognize the strategic importance of Data Privacy
Officers and invest accordingly to mitigate risks and boost opportunities.

If
you’re looking to hire top DPO talent or pursue a DPO role, I’m happy to help. I specialize in placing mid to senior-level talent insurance and risk professionals into roles within various organizations, and I’ve had the pleasure of connecting several successful clients with outstanding candidates who find their homes in them.

Contact the hanover team and let’s set up a time to chat
about your needs.