Keep a close reign on your confidential data

6 November 2008

As organisations continue to outsource confidential aspects of their business to third-party suppliers, the issue of data loss grows. This problem is particularly acute when it comes to marketing campaigns, many of which are handled by external suppliers.

Research by the Ponemon Institute of UK marketers confirms that third-party suppliers are 42% more likely to lose confidential data than their in-house counterparts. But here’s the real kicker: in 90% of these cases, the loss or theft went unreported since organisations were unsure whether they had to. This might explain why details of missing hard drives only come to light several months later — 18 months in the case of the lost hard drive containing details of up to 5,000 employees within the justice system, reported in September.

To maintain the integrity and security of confidential data, don’t give it away in the first place. This flies in the face of traditional marketing practices, especially for email campaigns, where the perception is that the expertise, knowledge and power is held by the service providers. Developments in technology have allowed large-scale email campaigns to be handled internally, however, often with better results and at a lower overall cost. By keeping confidential customer data internal to their business, companies can reduce the risk and associated brand damage of losing it.

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