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Data protection audits 'are key parts of risk management'
 
Making sure that the data stored in servers is secure and meets required protection standards should be a major part of managing risk for every firm, it has been suggested.

Failure to meet the requirements of regulations on personal customer information especially could lead to action from the Financial Services Agency if deemed sufficiently serious.

And law firm Denton Wilde Sapte highlighted that data protection issues are at the forefront of the agenda in the aftermath of the HM Revenue and Customs scandal in which the confidential details of 25 million child benefit claimants were lost in the post.

"Good data handling is very much a hot regulatory topic," said Martin Fanning, a data protection specialist at Denton Wilde Sapte.

He advised that checks to make sure that data storage systems meet the demands from government and business should be undertaken, with firms who conduct full data protection audits most likely to keep both themselves and their customers' data secure.

"Regular data protection audits are badges of good governance," Mr Fanning said.

"By including these review mechanisms within existing audit functions, organisations can optimise their use of these forward-looking risk management tools."


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