subject: Accountants Must Pay Attention To Data Security [print this page] Accountants Must Pay Attention To Data Security
Data security cannot be under estimated, whether you are in business on your own account or you are an accountant advising others. Be aware that the Information Commissioner, the ICO, is particularly interested in any breaches of security and can impose fines of up to 500,000 if anything is discovered. This could be a drop in the ocean as well, as the costs to fix this could be even more significant. Accountancy professionals and client companies should be aware of some new training modules that have been established to ensure that corporate governance and information security is treated with all due care. Interested parties should take advantage of a series of modules, which help to draw attention to the legislative risks and the cost potential associated. It's important to note, however, that you should not only view this as a threat, for an organisation that takes responsibility can realise enhanced customer loyalty and increased sales, as a consequence.With online sales rising inexorably despite the recession, represented by an almost 40% increase between 2007 and 2008 for example, the risks of fraud and theft to businesses cannot be underestimated. You must ensure that the data you are responsible for is secure and if you have an accounting practice you are legally obliged to do so. Information security training must be provided to all your staff, or a 500,000 fine and possible jail sentence may await you!Forward thinking organisations should be aware of the opportunities as well as the risks. While new legislation certainly means that you have legal requirements to keep up with, opportunities lie ahead as well. If you are seen to be proactive in this area you can enhance your reputation, improve customer loyalty and consequently boost sales, maybe as much as 20%.Did you know that a data breach can cost as much as 64 per compromised record, not including the hefty fines that we have talked about? If you have a very large number of records, sorting out all that mess can be so costly that it can put your organisation out of business, if you are not careful. These costs can include client loss, crisis management and ongoing investigations. If you are unlucky you could be forced to pay compensation if any financial losses are incurred by others due to theft of data. Your insurance company may be less than happy with you if it appears that you have not taken the necessary steps to protect the data that you are responsible for, as well.Small business can be as vulnerable as large business and nobody wants the attention of the Office of Fair Trading, the Serious Fraud Office or the Information Commissioner. It's vitally important that you be aware of the requirements and any developments in key legislative areas. Remember that your reputation is on the line, but you can also significantly enhance it, if you pay particular attention to these areas, with the potential of increased sales and new customers. Don't underestimate your liabilities and do your utmost to avoid fines and even a possible jail sentence!
