Why Your Business Needs Information Rights Management: The Consequences of a Poorly Set Up System
As businesses grow, so too does their need to manage the increasing amount of data and information they collect. Ensuring that this information is secure and accessible only to authorized personnel is critical to ensuring the success of any organization. Unfortunately, many companies fail to properly set up their information rights management (IRM) system or fail to recognize the need for one altogether. The consequences of such mistakes can be devastating. In this article, we will explore some of the reasons why your business needs IRM and what can happen if you fail to implement it correctly.
What is Information Rights Management?
IRM refers to the set of policies, technologies, and protocols used to control and protect access to sensitive or confidential information. These controls determine who can access, edit, copy, or distribute data within an organization, as well as how and where the data is stored. IRM is especially important for businesses that handle financial, legal, medical, or personal information, as the misuse of such data can have severe legal and financial consequences.
The Consequences of Poorly Managed IRM
A poorly set up or managed IRM system can expose your company to a range of threats, including:
1. Data Breaches
Data breaches occur when sensitive information falls into the wrong hands due to a lack of proper control or security measures. These breaches can lead to the theft of customer information, identity theft, and other types of fraud.
2. Loss of Intellectual Property
Intellectual property is any creation of the mind that is unique and has value, such as patents, trademarks, and copyrights. A poorly implemented IRM system can allow employees or outsiders to steal this information, which can be used to create unfair competition and harm your company’s reputation.
3. Legal Complications
Inadequate information management can lead to legal complications for your business. Lack of compliance with data protection regulations can result in hefty fines and legal actions, leading to reputational damage.
4. Damage to Reputation
A poorly managed IRM system can also harm your company’s reputation. Publicized data breaches or violation of customers’ privacy rights can lead to a lack of trust, potentially driving customers away and harming your business’s bottom line.
The Benefits of a Properly-Managed IRM
Properly implemented IRM can help your business in several ways:
1. Protects Sensitive Data
A well-designed IRM system ensures that only authorized personnel can access sensitive data, reducing the risk of data breaches.
2. Mitigates Legal Risks
An IRM system can help you comply with data protection regulations and avoid legal risks and penalties.
3. Prevents Intellectual Property Theft
By controlling access to your company’s intellectual property information, you can prevent theft and unfair exploitation, maintaining a competitive edge.
4. Boosts Business Reputation
Good information management practices help build the trust of customers and other stakeholders, who appreciate your commitment and competence in protecting their data.
Conclusion
In summary, information rights management (IRM) is an essential component of any modern business. Failing to properly set up and manage an IRM system can have severe consequences, from data breaches to loss of intellectual property, legal complications, and reputational damage. On the other hand, a well-designed IRM system can protect sensitive data, mitigate legal risks, prevent theft of intellectual property, and boost business reputations. By investing in an IRM system, you can ensure that your business maintains control over its data and protects its interests, even in an ever-changing digital landscape.
