The commercial real estate industry is becoming more and more popular. proptech adoption To find savings and business ideas… But companies need to be careful. Security and privacy are two pillars of a successful data analytics initiative. Ensuring that information is stored securely while adhering to a complex system of privacy laws will contribute to the success of a real estate organization with data. Why? If information is not kept secure or used in violation of the law or the obligations the business has made to consumers, companies face regulatory penalties, investigations and customer anger.
Who, how and where is safe
Companies need to understand who collects and stores its data, especially when this data contains personal information or confidential business information. How recent is loud data leaks and extortionist attacks on real estate have shown widespread data processing and storage. If a company does not know where its data is located, it cannot properly assess and reduce the risk of third parties gaining unauthorized access to this data.
Knowing who processes and stores the data is only the first step. Companies must also assess risk how this data is protected and where it is located. Before entering into a contract with a third-party technology provider, the company must ask (and the supplier must be able to provide a clear answer) about the provider’s storage solution. Is the data stored in an onshore or offshore data center? Is it stored in the cloud, and if so, can the provider commit to isolating data in certain cloud regions? Is data encrypted during transmission and at rest? What other safeguards are there to protect your data? Without a clear understanding of these issues, companies risk significant financial and regulating fall out.
What, Why, and How to Ensure Confidentiality
A real estate company must be careful about the information it collects. In the age of big data and sophisticated data analytics, many companies have a philosophy of “get it all and figure out what to do with it later.” But too much data collection can be Operatively overwhelming and even lead to immoral prejudice with careless use.
What kind will be collected, Why it is going, and how Whether the data will be used should be at the heart of every analytics conversation. Collecting data responsibly and using that data for appropriate reasons increases efficiency and builds trust with consumers and partners. Companies must maintain clear, accessible and up-to-date privacy policies. In addition to building trust and improving data analytics performance, robust privacy policies and procedures protect against regulatory risks. The patchwork quilt of regulations in the United States from state to state is complex, and Congress may be seeking to enact federal privacy framework also. International privacy laws strong and developing, too. It is vital that the real estate company has a complete understanding of the set of laws that apply to the use of data. Random errors here can lead to crippling financial sanctions…
At the end of the day, the last thing you want is to have all of the initial ideas and gains from your investment in proptech turned into a potential loss due to fines and loss of consumer confidence.