Data is the lifeblood of any organisation, but managing and protecting it can be a daunting task, especially for membership organisations. With the increasing amounts of data being generated, it's crucial to implement effective data management strategies to minimise risks and maximise benefits. One such strategy is derisking data.
What is derisking data?
Derisking data is the process of reducing or mitigating the potential risks associated with the management and use of data. It involves identifying, assessing, and minimising the risks posed by data to an organisation, including security breaches, data loss, and non-compliance with regulations.
The goal of derisking data is to ensure that data is protected and used responsibly, while still allowing organisations to fully leverage its benefits. To achieve this, organisations must ensure that appropriate security measures and data protocols are in place. By implementing robust security measures and data protocols, organisations can protect their data while still being able to utilise its full potential.
The risk of data breaches is significant. The average global cost of a data breach has reached £3.6 million. This is a 12.7% increase from the previous year, and the highest ever recorded in the history of IBM reports.
To achieve derisked data, organisations must take steps to ensure best practices for security, privacy, and data governance are implemented. This can be accomplished through various means such as data cleansing, data encryption, access control, and backup and recovery processes.
Zhuangzi, a Chinese philosopher, wrote: “Your life has a limit, but knowledge has none. If you use what is limited to pursue what has no limit, you will be in danger.” By derisking data, membership organisations can not only mitigate their risks but also expand their knowledge. This will enable them to gain more insight and ultimately move beyond the limitations of their own lives.
Key benefits of derisking data for membership organisations:
- Improved data quality: Derisking data identifies and eliminates duplicates, errors, and inconsistencies, leading to better data quality. Improved data quality results in more accurate reporting and better decision-making. Businesses with low data quality lose an estimated 20% of their revenue.
- Increased data security: Derisking data eliminates sensitive information and reduces the risk of data breaches. This improves the overall security of the organisation's data and helps to protect the privacy of its members.
- Better compliance: Data derisking helps organizations comply with regulations such as GDPR, reducing the risk of fines and legal action. For instance, derisking data helps organisations identify and eliminate personal data such as names, addresses, and phone numbers from their databases. This ensures that membership organisations do not store more data than is necessary.
- Enhanced member experience: Derisking data enables organisations to segment their members based on specific criteria, such as location, interests, or preferences. This helps to tailor communication and offerings to the specific needs of their members, resulting in a better overall experience.
- Improved data insights: Organisations can better understand their members, their needs, and preferences by derisking data. This can lead to more effective marketing campaigns, improved product offerings, and a better overall understanding of the organisation's market.
In conclusion, derisking data is an essential aspect of data management for membership organisations. By improving data quality, increasing data security, enhancing compliance, and providing better data insights, derisking data can help organisations better serve their members and achieve their goals. These benefits make derisking data an important part of a successful membership organisation.