Data privacy vs. data security | TeamMate
Data privacy vs. data security | TeamMate
https://www.wolterskluwer.com/en/expert-insights/data-privacy-vs-data-security-internal-auditors
Publish Date: 2026-04-29 03:00:00
Source Domain: www.wolterskluwer.com
The strategic impact of data privacy vs. data security
The lines between data privacy and security are blurring, and today’s business environment isn’t making it any easier. Cloud migrations. Rapid digital transformation. The sudden integration of artificial intelligence (AI). Companies are collecting more data than ever before, and it is very hard to keep track of it all. To put this in perspective, Statista and IDC did research that showed the world created and consumed 181 zettabytes of data in 2025.
When a breach occurs, the strategic impact hits hard. Failure in data security leads to ransomware attacks, intellectual property theft, and operations grinding to a halt. On the flip side, failure in data privacy results in massive regulatory fines and a profound loss of customer trust. In the financial services sector, where consumer confidence is the currency that matters most, a privacy misstep can be just as fatal as a breached firewall.
Let’s look at this from the boardroom perspective. Ten years ago, the audit committee might have been satisfied with a simple check-the-box exercise stating that the firewalls were active and antivirus software was up to date. Today? The conversation has entirely changed. Board members are asking pointed questions about data lineage, third-party handlers, and the financial exposure associated with a potential privacy breach. They recognize that a fractured approach to data privacy vs. data security is a massive, unmitigated risk. In the financial services sector, where consumer confidence is the currency that matters most, a privacy misstep can be just as fatal as a breached firewall. Rebuilding a server takes days; rebuilding customer trust takes decades.
Stakeholders view data privacy vs. security not as back-office IT problems but as non-negotiable pillars of organizational health. In fact, The Institute of Internal Auditors’ (The IIA) Risk in Focus Report 2026 found that cybersecurity continues to hold the…
