# 10 questions CFOs must ask themselves about privacy Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-07-14 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Why CFOs Can't Afford to Ignore Privacy Compliance Meta Description: Explore the risks of ignoring privacy compliance for CFOs from fines to reputational damage. Get solutions from Nigel Jones, Co Founder of The Privacy URL: https://financedigest.com/10-questions-cfos-must-ask-themselves-about-privacyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1313906054-1736815586218-compressed.jpg) ![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/nigel-jones-co-founder-pricacy-compliance-hub-1736815586135-compressed.jpg) Busy CFOs might see privacy as an unwanted burden on their schedules. But failing to invest in privacy is a false economy when it leads to fines and reputational damage. By NIGEL JONES, Co Founder of The Privacy Compliance Hub As the [Chief Financial Officer](https://www.financedigest.com/tips-for-choosing-the-right-chief-finance-officer-for-your-business.html "Tips for Choosing the Right Chief Finance Officer for Your Business") (CFO) of a growing business, we know you often find yourself wearing many hats. One of the most senior people in your organisation, you’re constantly juggling the reality of spreadsheets and budgets with the ambitious [business goals and vision of the CEO](https://www.financedigest.com/ceo-riggs-eckelberry-of-originclear-discusses-the-power-of-intuition-in-running-a-successful-business.html "CEO Riggs Eckelberry of OriginClear Discusses the Power of Intuition in Running a Successful Business "). You’re wary of costs, apprehensive about risk, and [need investments](https://www.financedigest.com/the-six-things-you-need-to-consider-before-starting-or-investing-in-an-ico.html "The six things you need to consider before starting or investing in an ICO") to pay off – quickly. The last [thing you need](https://www.financedigest.com/5-key-things-you-need-to-know-before-hiring-your-first-employee.html "5 Key Things You Need to Know Before Hiring Your First Employee") is a hefty fine from the Information Commissioner’s Office (ICO) because the organisation isn’t privacy compliant. We get it. Here are 10 questions for CFOs to consider: 1. **What have I done so far to address privacy?** This won’t be the first time you’ve heard about the importance of privacy compliance, or complying with the General [Data Protection](https://www.financedigest.com/finalised-pan-european-data-protection-laws-set-the-new-standard-for-a-privacy-friendly-business-environment.html "Finalised Pan-European data protection laws set the new standard for a ‘privacy-friendly’ business environment") Regulation (GDPR). But what have you done so far to [tackle this challenge](https://www.financedigest.com/how-can-financial-firms-tackle-the-challenges-that-lie-ahead-in-2021.html "How can financial firms tackle the challenges that lie ahead in 2021?")? Are you confident your organisation is on top of its responsibilities and is handling [data legally](https://www.financedigest.com/new-gleif-challenge-facility-extends-ability-to-trigger-updates-of-legal-entity-identifier-data-to-all-interested-parties.html "New GLEIF Challenge Facility Extends Ability to Trigger Updates of Legal Entity Identifier Data to All Interested Parties"), transparently, ethically and responsibly? 2. **Can I afford to ignore privacy?** We know you’re busy but you really [can’t afford to ignore](https://www.financedigest.com/accountants-cant-afford-to-ignore-making-tax-digital.html "Accountants can’t afford to ignore Making Tax Digital") this, if only because of the fines increasingly dished out by the ICO. Already in 2021, we’ve seen American Express fined £90,000 for sending marketing emails, and a £200,000 bill handed to a Leeds-based claims management [firm for making nuisance calls](https://www.financedigest.com/international-law-firm-calls-in-viato-connect-uk-and-us-offices.html "INTERNATIONAL LAW FIRM CALLS IN VIATO CONNECT UK AND US OFFICES"). Beyond the fines, there’s also the [cost of a security](https://www.financedigest.com/durham-county-council-reduces-data-log-analysis-costs-by-50-with-real-time-analysis-and-security-tool.html "Durham County Council reduces data log analysis costs by 50% with real-time analysis and security tool") breach itself. 3. **What’s the [risk to the business’s](https://www.financedigest.com/businesses-unaware-of-operational-risk-caused-by-spreadsheets.html "Businesses unaware of operational risk caused by spreadsheets") reputation?** A [data breach](https://www.financedigest.com/10-steps-to-stop-lateral-movement-in-data-breaches.html "10 Steps to Stop Lateral Movement in Data Breaches") or ICO fine won’t just hurt the business finances, it’s also damaging for its reputation. A third of UK organisations lose customers after a data breach, and four in 10 customers [say they’ll never return](https://www.financedigest.com/greece-britain-discussing-parthenon-sculptures-return-but-deal-not-close-athens-says.html "Greece, Britain discussing Parthenon Sculptures return but deal not close, Athens says") to a business after a security issue. 4. **Won’t this just slow the team down?** If anything, building confidence among the team by teaching them about [privacy compliance and how they should and should not handle data](https://www.financedigest.com/tesla-to-warn-of-data-privacy-risk-from-car-security-cameras-in-germany.html "Tesla to warn of data privacy risk from car security cameras in Germany") will have the opposite effect. By knowing exactly what data is being collected and for what purpose, your team will feel empowered to spot new [insights and create](https://www.financedigest.com/modernising-credit-assessment-for-mortgages-finding-real-insights-to-create-real-opportunity.html "Modernising Credit Assessment For Mortgages – Finding Real Insights To Create Real Opportunity") new solutions. 5. **Shouldn’t I just hire someone to delegate this to?** We’ve found the most effective way to make sure an organisation takes privacy seriously is by building a culture of [continuous privacy compliance across](https://www.financedigest.com/workday-continues-momentum-across-europe.html "Workday continues momentum across Europe") all departments – from legal and marketing, to finance and sales. Everyone [handles data](https://www.financedigest.com/crowdsourcing-of-data-to-drive-the-patient-handling-equipments-market.html "Crowdsourcing of data to drive the Patient Handling Equipments Market") in some shape or form and, with 90% of breaches down to human error, it’s definitely a good idea to get everyone involved. 6. **How do I make privacy** [cost effective?](https://www.financedigest.com/dash-blockcypher-combine-forces-to-drive-cryptocurrency-adoption-partnership-enables-faster-and-more-cost-effective-enterprise-integration.html "Dash &BlockCypher Combine Forces to Drive Cryptocurrency Adoption Partnership Enables Faster and More Cost Effective Enterprise Integration") As the CFO, we understand you want the numbers. The great thing about the Privacy [Compliance Hub is it’s a flexible solution](https://www.financedigest.com/compliance-and-traceability-solution-market-growth-future-prospects-and-competitive-analysis-2015-to-2025.html "Compliance and Traceability Solution Market Growth, Future Prospects And Competitive Analysis 2015 to 2025") with a fixed monthly price. Trust us, it’s much cheaper than those ICO fines and we can guarantee there won’t be any surprises waiting for you at [year end](https://www.financedigest.com/equity-markets-show-strong-end-of-year-performance-in-camradatas-q4-2017-investment-research-reports.html "Equity Markets Show Strong End of Year Performance in CAMRADATA’s Q4 2017 Investment Research Reports"). 7. **How do I keep up to date?** The world of privacy moves fast and we (kind of) understand that not everyone is as fascinated by it as we are. We’re constantly updating the Hub with new [tips and guidance](https://www.financedigest.com/security-backed-mortgages-essential-tips-and-guidance.html "Security-Backed Mortgages – Essential Tips and Guidance") on the latest updates and regularly refresh training modules so your employees will be kept up to date too. 8. **Are investors and other stakeholders interested in this?** Absolutely. If you’re eyeing an exit or expecting to open an investment round, part of the due diligence process will consider your approach to privacy and [data protection](https://www.financedigest.com/4-steps-you-should-be-taking-to-protect-data.html "4 Steps You Should Be Taking To Protect Data"). Compliance done right can positively affect a valuation, and demonstrate to all stakeholders that [you’re on top](https://www.financedigest.com/5-steps-hiring-top-talent-youre-just-start.html "5 steps to hiring top talent when you’re just a start-up ") of what can be a real risk to any growing business. 9. **How about clients?** Ignore privacy and you’re likely to be seen as too risky to do business with, particularly if you’re working with clients in heavily [regulated industries](https://www.financedigest.com/how-solvency-ii-transformed-itself-the-fund-industry-and-regulation.html "How Solvency II transformed itself, the fund industry and regulation") like fintech or healthtech. Being able to demonstrate good practice will [boost the confidence](https://www.financedigest.com/how-the-epa-plans-to-boost-confidence-in-the-uk-payments-industry-post-brexit.html "How the EPA plans to boost confidence in the UK payments industry post Brexit") of everyone who deals with your company. 10. **How do I solve this effectively once and for all?** Talk to us. The [Privacy Compliance](https://www.financedigest.com/sugarcrm-embeds-more-data-privacy-controls-in-its-products-for-gdpr-compliance.html "SugarCRM embeds more data privacy controls in its products for GDPR compliance") Hub is a simple-to-understand framework that teaches your whole organisation how to understand, care about, and commit to a culture of continuous privacy compliance. It’s easier than you might think. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---