Data, the gold of the 21st century
IBM’s Cost of a Data Breach Report 2023 highlights that the average cost of a data breach soared to USD 4.45 million in 2023. The costs of data breaches vary across industries and countries. Some are more prone to data and cyber threats than others; the earlier quoted IBM research identified the US as the country with the highest cost of data breaches, with losses totalling USD 9.48 million in 2023. See Figure 1.
Figure 1: Cost of data breaches by country, 2023 and 2022
On the industries front, the healthcare sector spent the most to tackle data breaches across the globe, the amount summed up to USD 10.93 million in 2023. See figure 2.
Figure 2: Cost of data breaches by industry, 2023 and 2022
The digital age has mandated data security and privacy to become paramount concerns for organizations worldwide, and Chief Information Officers (CIOs) bear the weight of safeguarding their company's most valuable asset—data, which includes data of customers, vendors, and its own people.
While data security across all kinds of data gives a CIO sleepless nights, people's data holds a special place. With the growth in volumes of data, cyber threats lurking around every corner, and privacy regulations like GDPR and CCPA demanding strict compliance, traditional security measures are no longer sufficient. CIOs and their teams must constantly think ahead of challenges and be ready to tackle any breach. However, there is a powerful tool that can help you fortify your defences and sleep soundly at night: an integrated Human Capital Management (HCM) platform.
Gold is always under threat
CIOs face several challenges when it comes to protecting employee data. The rapid shift to remote work due to the COVID-19 pandemic has only exacerbated the issue, expanded the attack surface, and made it harder to secure data across various departments and devices. Most CIOs have continuously worked to improve their business’ cybersecurity posture; however, despite the efforts, interestingly, 83% of businesses suffered some form of cyber hack in 2023. These hacks resulted in unscheduled downtime, loss of revenue and data, and regulatory fines.
Moreover, the regulatory landscape is constantly evolving, with new privacy laws emerging in different regions. Gartner predicts that by 2025, 75% of the world's population will have their personal information covered under modern privacy regulations. Keeping up with these changes and ensuring compliance is a daunting task for CIOs, who must navigate a labyrinth of legal requirements while maintaining the trust of their employees and customers.
The vault of a secure HCM – Darwinbox
Enter Darwinbox, an integrated HCM platform—an invincible shield in the battle for data security. The platform offers a comprehensive suite of features designed to enhance data protection, streamline compliance efforts, and foster a culture of security awareness. By leveraging the platform's power, CIOs can address their specific needs and transform their organizations' approach to data security.
Let’s review how Darwinbox’s capabilities can come in handy for a CIO to ensure the employee data is always secure, private, and compliant with local and global regulations:
- Robust Security Auditing and Monitoring:
One key advantage of integrated HCM platforms is their ability to provide robust security auditing and monitoring capabilities. With comprehensive audit trails, CIOs gain visibility into every user activity within the system, from data access and modifications to deletions. This level of granular tracking is essential for detecting and responding to potential security breaches in a timely manner.
According to a study by the Ponemon Institute, organizations that contained a breach within 30 days saved an average of $1 million compared to those that took longer. Darwinbox enables CIOs to act swiftly by integrating seamlessly with advanced cybersecurity tools such as Security Information and Event Management (SIEM) systems. This integration allows for real-time threat detection and response, empowering CIOs to nip potential breaches in the bud.
- Privacy by Design:
Privacy regulations are continually evolving, making it challenging for CIOs to keep pace. The European Union's GDPR, which came into effect in 2018, set a new standard for data privacy, with fines of up to €20 million or 4% of global annual turnover for non-compliance. The system is 100% compliant with Indonesia’s PDP, PDPA in Singapore, and Personal Data Protection Law in UAE, among many other country-specific data protection regulations.
Darwinbox has adopted a Privacy by Design approach to navigate this complex regulatory landscape. This means that data privacy is not an afterthought but is embedded into the system from the ground up. For instance, Darwinbox employs Role-Based Access Control (RBAC) frameworks to ensure that data access is restricted based on job responsibilities. This minimizes the risk of unauthorized access and helps maintain compliance with privacy regulations.
Furthermore, customizable validation and visibility options for data fields provide CIOs with granular control over data privacy. By tailoring these settings to match the specific requirements of different regulations, CIOs can ensure that their HCM platform remains compliant as laws evolve.
- Continuous Compliance Updates:
Staying informed about the latest changes in data privacy laws is a full-time job in itself. CIOs need a reliable source of information to navigate the ever-shifting regulatory landscape. This is where partnerships between HCM platforms and leading professional services firms come into play.
Darwinbox collaborates with EY to receive continuous feedback on global data privacy regulations. This partnership ensures that the platform remains up to date with the latest legal requirements, thus giving CIOs peace of mind. Regular updates and audits based on this expert guidance help organizations maintain high standards of data protection and avoid costly penalties.
By leveraging the expertise of professional services firms through their HCM platform, CIOs can mitigate this risk and demonstrate their commitment to data privacy to customers and stakeholders.
- Empowering Employees through Training:
While technological safeguards are essential, the human element remains a critical factor in data security. A 2024 Verizon study found that 68% of data breaches involved a human element, such as falling victim to a phishing scam or using weak passwords. To combat this, CIOs must empower their employees with the knowledge and skills to protect data effectively.
HCM platforms serve as transformative tools for delivering comprehensive training programs on data security best practices. Through Learning Management Systems (LMS) and Learning Experience Platforms (LXP), employees can access engaging content that educates them on data privacy rights, regulatory requirements, and secure data handling techniques.
Darwinbox seamlessly integrates with 8+ third-party learning platforms, all available on our marketplace, with options for additional custom integrations. The beauty of these platforms lies in their ability to provide customized learning paths for different roles within the organization. This ensures that each employee receives targeted and relevant training based on their specific responsibilities. For example, IT staff may require in-depth technical training on network security, while HR personnel may need to focus on data privacy regulations related to employee records.
By investing in employee training through HCM platforms, CIOs can create a culture of security awareness and accountability. A well-informed workforce is better equipped to identify and report potential threats, reducing the risk of data breaches caused by human error.
- Encouraging Open Communication and Feedback:
CIOs must create a culture of trust and transparency around data security. Employees should feel comfortable voicing their concerns and reporting incidents without fear of retribution. HCM platforms provide the tools to establish open communication channels and encourage feedback from employees.
Grievance management solutions and employee helpdesks, integrated into HCM platforms, offer a structured way for employees to report data leakage incidents or raise privacy-related issues. These channels allow CIOs to address concerns promptly and take corrective action when necessary. By demonstrating a commitment to listening and responding to employee feedback, CIOs can foster a sense of trust and collaboration around data security.
Moreover, social interaction features within HCM platforms, such as Darwinbox's Vibe, provide a space for employees to engage in discussions about data privacy and security. These forums allow for the sharing of ideas, best practices, and real-world experiences, promoting a culture of continuous learning and improvement.
Get started with secure HCM
In today's world, where cyber threats are constantly increasing, and privacy regulations are always changing, CIOs have a critical job: protecting people's data. The key to this is using integrated Human Capital Management (HCM) platforms. These platforms let CIOs build a strong data security strategy that includes thorough auditing and monitoring, designing with privacy in mind, keeping up with compliance, training employees, and maintaining open communication.
CIOs are the guardians of data privacy and security, carrying a huge responsibility to their organizations and employees. But with the right tools and strategies, they can handle this challenge and lead the way in creating a secure and compliant digital workplace. By utilizing HCM platforms, CIOs can revolutionize their data security methods, promote a culture of trust and accountability, and help their organizations thrive despite the ever-changing landscape of cyber threats and privacy demands.
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