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With reforms to Australia’s Privacy Act now in place, businesses large and small must “lift their data security standards”.
Consumer privacy and data security need to be core principles in the data strategies of every Australian business, according to one Australian data analytics expert.
With the long-awaited reforms to Australia’s Privacy Act finally passing into legislation, Dr Ian Tho – a partner at professional services firm RSM Australia – said businesses of all sizes need to be aware of both the reputational and legal aspects of the reforms.
“The initial amendment introduces a raft of changes to empower individuals, including a statutory tort that will provide a legal avenue to pursue compensation for privacy-based damage or loss against an organisation or individual,” Tho (pictured) said.
“While lower-earning businesses have been excluded from the updated legislation for now, this may not be the case for future reform tranches, of which at least one more is expected.
“In the meantime, the increased consumer powers and any resulting legal action will put pressure on businesses of all sizes and sectors to lift their data security standards.
“Even businesses that are not legally required to comply will likely experience increased consumer scrutiny, and those that don’t demonstrate respect for personal data autonomy, dignity and security could face customer distrust or rejection.”
Tho said that privacy by design and integrating security into every part of the data life cycle should be essential parts of every company’s data strategy.
“All businesses should regularly review the amount of information they collect, determine what’s actually being used, and move towards data minimisation wherever possible so they hold only the most necessary information,” Tho said.
“Documenting and implementing a data retention policy is also key, as well as training employees to make sure they can uphold compliance requirements and respond adequately to consumer queries, requests and concerns.
“Businesses, data analysts, advertisers and marketers should all be watching this space closely, as it is yet to be seen how future changes may further impact evolving areas like machine learning and predictive analytics relating to customer segmentation and A/B testing, for example.”
Speaking of RSM Australia’s recent report, Cyber storm rising: Navigating the path to resilience for Australian businesses, RSM Australia partner, security and privacy, Riaan Bronkhorst added that cyber preparedness was sorely lacking in large Australian companies.
“Most concerningly, the report showed that only 66 per cent of large firms and 55 per cent of mid-sized firms have run a response test to a cyber attack within the past year,” Bronkhorst said.
“With privacy and information security regulations only expected to strengthen, it’s critical businesses embed rigorous internal and external testing to identify any weaknesses and ensure they can appropriately defend against cyber threats and safeguard consumer data.”
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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