How to Create a DLP Policy? Steps & Best Practices
Learn everything about Data Loss Prevention Policies and how they could safeguard your business from possible cyber threats.
Learn everything about Data Loss Prevention Policies and how they could safeguard your business from possible cyber threats.
TL;DR
Data Loss Prevention (DLP) policies refer to a set of guidelines and procedures designed to protect sensitive data from disclosure, use, or access. To say otherwise, the primary function of a DLP policy is to prevent data loss, whether done intentionally or accidentally.
DLP policies, further, include implementing proactive measures and controls. These policies have a range of strategies and involve technological solutions, employee training, and ongoing monitoring to ensure the highest degree of security of valuable data assets.
Termed as “the new oil”, data across organizations now hold more importance than ever before. This includes data from purpose-centric organizations that work with sensitive customer information, proprietary trade secrets, and other crucial aspects of the business. In scenarios, such as this, businesses need to understand that data plays a pivotal role in driving operations and maintaining a competitive edge over others.
However, one cannot overlook the risk of data breaches and information leaks which have been at an all-time high. This has led to the creation and regularization of laws called the Data Loss Prevention (DLP) policies.
In this article, we at Strac help you explore what DLP policies are and why they are so important. Additionally, we find out how these policies work, along with the steps and best practices for creating an effective DLP policy.
Losing crucial information can lead to severe consequences. Substantial financial penalties and potential criminal repercussions are just two of it. Additionally, it can lead to inflicting significant harm on an organization’s operations and may even lead to its closure.
A notable example of this is the curious case of Equifax. In 2017 the company lost personal and financial data and records of more than 150 million people. The company’s failure to promptly address the vulnerability and the subsequent delayed breach disclosure compounded the damage. Consequently, in July 2019, Equifax was fined a staggering $575 million.
On the other hand, critical data losses also put executives at risk. For instance, executives could face dire professional consequences due to data loss incidents. One such notable incident involves top executives of Target who had to resign their way out.
Some of the important factors that qualify as the key driving force of DLP Policies are as follows:
Sensitive data, such as Personally Identifiable Information (PII) and financial records, are prime targets for cybercriminals. DLP policies play a vital role in safeguarding this information, mitigating the risk of data breaches, and protecting customers and organizations from potential harm.
Numerous industries face strict data privacy and security regulations. DLP policies help organizations adhere to these rules, such as the Health Insurance Portability and Accountability Act (HIPAA) in the United States or the General Data Protection Regulation (GDPR) in the European Union. Compliance not only prevents legal complications but also ensures the organization is handling sensitive data responsibly.
For many organizations, their intellectual property, including trade secrets, patents, and proprietary information, is their most valuable asset. DLP policies are crucial in preventing unauthorized access or disclosure of these materials, thus safeguarding an organization's competitive edge.
Data breaches can have severe reputational consequences, potentially leading to customer attrition, financial losses, and legal actions. With robust DLP policies, organizations can protect their brand reputation and maintain the trust of their stakeholders.
With the rising trend of remote work and BYOD (Bring Your Own Device) policies, ensuring secure data handling has become more challenging. DLP policies are essential in managing these evolving workplace dynamics without compromising on data security.
Not all data breaches are from external actors; sometimes, they can be due to careless or malicious insiders. DLP policies help identify and mitigate such insider threats by monitoring data usage and controlling access.
Usually, DLP policies involve the know-how of technology, processes, and employee awareness to ensure comprehensive protection of sensitive data.
Here are the primary components for the effective working of DLP policy.
The creation of an effective DLP policy involves a lot of careful planning and consideration. Following steps share the steps in detail:
The very first step in making an effective DLP policy is identifying and prioritizing data involved in the entire process. Diving deeper, the process involves conducting a comprehensive data inventory to identify and classify the data types within the organization. The data is prioritized based on protection efforts, data sensitivity, and value.
Once you are thorough about the type of information your database contains, it becomes crucial to establish security policies. These policies should be clear and concise while open to acceptable data usage norms, meet encryption requirements, and contain incident regulations and best practices.
Next, it comes to implementing technological solutions based on the established security policies discussed above. Some of the common practices include deploying data loss prevention software, endpoint security tools, network monitoring systems, and encryption solutions.
One of the most pivotal practices in data security and its policy development is educating and training the staff. The process begins with making them aware of the subject and stretches to how important documents are handled, recognizing potential threats, and the security protocols attached.
Establishing practices and making employees aware of the rigorous solutions is half battle won. The principles must be monitored while the activities should be thoroughly followed to identify vulnerabilities or policy violations. Monitoring and auditing activities ensure that the rules are tightly followed, identify flaws in the current guidelines, and make better policies in future.
Data breaches are unpredictable, so having a planned response outlining the steps is necessary for all aspects. Under such circumstances, clear roles and responsibilities should be assigned. Next, ensure communication channels for swift and effective responses.
Since the processes are monitored and audited continuously, DLP policies should be periodically updated to adapt to evolving threats and technologies.
To establish an effective DLP policy, organizations should consider the following best practices:
Most organizations miss out on having executive support and hence fail to respond to cyber threats in the best way possible. Experts suggest obtaining executive buy-in and support for the DLP policy. Further, ensure that senior management understands the importance of data protection and provides the necessary resources for its implementation.
Conduct a thorough risk assessment to identify potential vulnerabilities and prioritize focus areas. Notably, the assessment should not miss out on any possible threat (both internal and external) along with the vulnerabilities within the organization’s infrastructure.
This includes establishing cross-functional teams involving team members from IT, security, compliance, and legal to ensure collaboration and alignment in implementing the DLP policies. On the other hand, it is advised that regular communication channels should be established to share updates, address concerns, and provide training and support.
Implement encryption measures for sensitive data at rest and in transit. Encryption helps protect data even if it falls into unauthorized hands, providing an additional layer of security.
Establish clear policies and procedures for data retention and disposal. Regularly review and delete unnecessary data to minimize the risk of unauthorized access or breaches.
We at Strac ensure that a DLP policy is only as effective as the people who implement it. Regularly train employees on the policy's details, why it's important, and their role in supporting it. Ongoing education helps create a culture of security within the organization.
Use monitoring, auditing, and feedback mechanisms to regularly evaluate and update the DLP policy. The digital landscape is constantly evolving, and your DLP policy should adapt accordingly.
This comprehensive guide is all you need if you’re looking for data security solutions. It covers data loss prevention (DLP) policies and important aspects of data privacy. Strac eliminates the highest degrees of risks with its proprietary AI-based solutions and hence is loved and used by companies of all sizes. For more information on Strac, visit Strac DLP (Data Loss Prevention) - Redact (Mask) PII.
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