Any business that collects personal data must have a system in place to manage it and ensure that it is used responsibly. A system for keeping people informed about what data is being collected and how it is stored is also required such a company. The chief privacy officer is in charge of coordinating these efforts. The chief privacy officer, or CPO, is a senior executive who is responsible for data management as well as customer relations. He or she is in charge of ensuring that the company’s data collection and storage complies with the law, and that customers continue to trust the company with their personal information.
The definition of “personal information” is changing all the time. Personal identification is defined laws and regulations in almost every country around the world, and rules for its use and collection are established, but the definitions are not always consistent. Personal information such as Social Security or tax identification numbers, as well as health records and information, must be protected almost everywhere. It’s much more debatable whether data like online web browsing history, purchasing patterns, and financial information should be considered private enough to be protected.
Laws such as the Health Insurance Portability and Accountability Act in the United States, as well as the EU Data Protection Directive, which has been implemented in all European Union member states, establish some guidelines for proper data protection practices. As technology advances, data protection laws are constantly amended and updated. The job of the chief privacy officer entails determining the company’s data protection practices and ensuring that they comply with the legal requirements of any jurisdiction in which the company does business. Many chief privacy officers are lawyers because their job entails a lot of regulation, but they aren’t required to be.
The chief privacy officer is also in charge of communicating with clients and customers to ensure that (1) their data is safe, (2) that the protection is adequate, and (3) that they should continue to provide data. Data collection has become just as important as data storage since the advent of the Internet and its penetration into everyday life. Originally, a company only needed a chief privacy officer if it stored sensitive information as part of its normal operations, such as a financial institution or a health-care provider. However, in the online world, information is frequently the most valuable asset.
Companies with online presences can keep track of who visits their sites and from where they came. They can place cookies on visitors’ computers to track where they go next, and they can create Internet advertisements based on user characteristics and data gathered over time. Client files and information are frequently stored online, which makes them searchable — but also more vulnerable to inadvertent exposure.
To stay competitive, it is generally in a company’s best interest to use archiving programs, Internet collection tools, and online tracking. The chief privacy officer is responsible for ensuring that the company’s privacy policies are sound and well communicated to the public. There must be oversight for a company to be protected, and trust must exist for the public to continue to share its data. The privacy officer’s primary responsibility is to satisfy both.