DID YOU KNOW: Approximately 75% of countries worldwide have implemented some level of data localization rules.
What is #datalocalization?
Data localization is a term used to describe the regulation of data storage in a specific geographical location, to prevent mismanagement of data and enhance cybersecurity within the state, to help promote the local economy of the location, and to address the rising concerns surrounding data and privacy.
A major driver of data localization came from globalization, as governments want to ensure their data is stored within their legal jurisdiction. Storing data in a specific location reduces the chances of unauthorized access and minimizes the risk of data breaches.
Implementing data localization can be a complex process. Challenges include:
- significant investment in infrastructure and technology, which can be costly for small and medium-sized enterprises (SMEs).
- storing data in one location can lead to slower data retrieval times, which can negatively impact business operations.
- data localization can make it difficult for companies to transfer data across borders, creating compliance issues for companies operating in multiple regions.
Despite the challenges, several countries have implemented data localization laws.
In 2018, Russia implemented a law that required companies to store the personal data of Russian citizens on servers within the country.
China requires companies to store their data within the country’s boundaries. These regulations have forced companies to invest in local data centers, which has boosted the local economy.
The General Data Protection Regulation (GDPR) in the European Union enables organizations to move personal information freely within the parameters of certain controls and requirements listed in the agreement.
How can you follow data localization regulations and minimize obstacles for your company?
- Regularly conduct audits of your compliance and the risks associated with data localization requirements of your business operation location.
- Read into the fine print of your cloud service providers to ensure they meet the data localization requirements of the area before choosing one.
- Implement strong data encryption and protect your data at all costs – from transit to rest.
- Create internal protection regulations for data storage to ensure that sensitive data is only accessible by authorized personnel.
- Conduct training and awareness programs for your employees to keep your company in the know about data localization rules and the associated risks. After all, knowledge is power.