8.1.1- Confidentiality And Privacy Flashcards
Why is it important to keep information about employee salaries and benefits private and confidential?
It can lead to decreased morale, dissatisfaction, and resentment among employees, creating a toxic work environment.
Employees might seek better-paying opportunities elsewhere if they feel they are not sufficiently compensated.
Why is it important to keep client lists private and confidential?
They contain client preferences and purchasing history, giving competitors an unfair advantage if leaked, as it’s easier for them to gain insights into the organisation’s client base, and potentially steal their clients.
If client lists aren’t properly safeguarded against data breaches, it could lead to identity theft, fraud, and other cybersecurity threats , significantly harming both clients and the organization
Why is it important to keep trade secrets private and confidential?
They give companies a competitive edge and advantage over competitors as they include manufacturing processes, marketing strategies, innovative technology and more.
Violating trade secret confidentiality can severely impact a company’s reputation, as people will perceive it as irresponsible and untrustworthy, reducing customer trust
Why is it important to keep sales numbers private and confidential?
Publicly disclosing them influences how customers, investors, and stakeholders perceive a company, as lower sales figures may lead to negative perceptions about the company’s financial health, while higher sales numbers could attract unwanted attention from competitors or regulatory authorities.
Disclosing sales numbers can affect employee morale and motivation if they are lower than expected, making employees feel dissatisfied
Why is it important to keep customer information private and confidential?
To build stronger customer relationships and customer loyalty.
Customer information can be exploited by cybercriminals for identity theft and fraud if not properly safeguarded.
Why is it important to keep news about pending restructuring private and confidential?
Premature disclosure of restructuring plans may cause anxiety, decreased morale, rumors, and speculation among employees, disrupting the workplace and negatively impacting productivity.
It may also lead to increased turnover as employees seek more stable employment elsewhere.
What are the impacts of failing to maintain privacy and confidentiality for organisations?
Loss of trust among customers, employees, investors, and other stakeholders, causing significant reputation damage, which can be challenging and costly to rebuild, impacting the organisations long-term success.
Severe legal and regulatory consequences, including fines, penalties, lawsuits, and damage to the organisations finances and reputation.
Direct financial losses, including costs associated with investigating the breach, compensating affected parties, legal fines, and loss of business due to reputational damage
