Protecting sensitive company information is possible only through proper data management. Companies are responsible for creating, storing and protecting sensitive data like financial information, transactions and personally identifiable information. Companies have legal obligations to protect sensitive data. This is in addition to their moral and logical responsibility. A Data Destruction Policy is essential for any company that is reputable. This policy will allow all parties to know how to deal with sensitive information they find during their work.
Let’s first discuss the common laws and regulations that govern data destruction within corporate & business settings. Each law & regulation will have its own guidelines.
Health Insurance Portability And Accountability Act, (HIPAA).
HIPAA (or the Health Insurance Portability & Accountability Act) is the US privacy law. It protects patients’ medical information from fraud and theft by those who are not authorized to see it. According to the law’s text, “Failing to implement reasonable safeguards for PHI in relation to disposal could result in impermissible disclosures” (45 CFR 164.310(d),(2)(i) & (ii). You would be violating HIPAA if you incorrectly destroy this sensitive data. Although the law doesn’t specify a specific disposal method, partnering with eCycle Florida, a Data Destruction specialist, will ensure your compliance and protect your patients’ sensitive information with proper data management.
Sarbanes-Oxley Act (SOX)
Sarbanes-Oxley Act of2002 is a federal law which sets the standards for domestic public companies’ board of directors to follow in order that they can properly manage financial information. A public company must create an internal control committee within its company in order to establish and enforce policies. Compliance with SOX ensures that financial information and reporting related to an organization are secure, both while it is stored and when it is destroyed.
Gramm-Leach-Bliley Act sets out the consumer privacy laws financial institutions must comply with. The Financial Privacy Rule & Safeguards Rule are two major components of the law. These rules, along with the development of a written plan for information security that your company must follow when storing or destroying consumer data, are key elements. eCycle Florida can help you comply with the GLB Act by ensuring that your sensitive consumer data is properly disposed of and providing the complete chain audit required by law.
Fair And Accurate Credit Transactions Act
Fair and Accurate Credit Transactions Act provides consumer protections that all financial service providers must comply with. Lenders are Insurers, Employers and Landlords. Government agencies, Mortgage brokers, Automobile Dealers, Attorneys and Private Investigators are also required to follow FACTA. FACTA requires that all companies dealing with consumer information must comply with this list.
FACTA stipulates that paper can be disposed of in the following ways: destruction by electronic means (e.g., files cannot be read, reconstruction or destroyed), and the diligence of hiring a document destroyer to ensure compliance.
Establish A Data Destruction Policy
Examine the regulations in your industry to ensure compliance. Your workplace and company should be designed so compliance is second nature to your employees.
Ensure Records Are Digitized
Keep a digital record wherever possible of all your paperwork. Although many laws and regulations require that hard copies be kept for a certain time, it’s easier to manage long-term preservation of these records by having them digitized in a secure way and keeping them long after they are destroyed. With most professional records management software, digital records are less likely to be lost.
Use Records Management Software
Records Management Software allows organizations and groups to manage their data in a systematic way. They make it easier to keep accurate records and reduce human error by creating an organizational system that makes retrieval and destruction of data predictable and repeatable. It is important to invest in good Records Management Software to protect your data.
Train & Inform Stakeholders
Although this may seem obvious, it is important to ensure that all stakeholders in your organization are trained on how to manage data. Each point person in the organization should be educated on data regulations. Although tools can reduce human error, they are still used by humans and must be understood for their importance in protecting data. This is a crucial step in reducing your liability while remaining compliant.
Reliable Data Destruction Companies Like eCycle Florida Are A Good Partner!
Data destruction is essential in any data plan. A company certified by R2-RIOS or a member of eCycle Florida is a good partner. You can trust your sensitive data to a partner in data destruction by obtaining certifications or industry membership.
Contact eCycle For Proper Data Management
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