Data governance in IT security: a crucial step toward compliance with Law 25

In business, you know it: decisions come quickly and priorities are constantly shifting. Between managing operations, following up with clients, and growing the company, it is easy to postpone certain obligations—especially when they seem complex or disconnected from day-to-day realities.

“This does not apply to us. We do not handle sensitive data. We are too small to be concerned.”

Law 25 obligations do not apply only to large companies. Any organization that collects personal information must comply. And even if you do not sell directly to consumers, you inevitably hold personal data such as:

• Your employees’ social insurance numbers
• The IP addresses of visitors to your website
• Your clients’ banking details

Protecting this information is essential to ensure your compliance with Law 25. That is where data governance comes in, as part of the strategic cybersecurity challenges for Quebec businesses.

This strategy is based on processes and policies designed to govern how you manage personal information. It includes, among other things, IT security measures to prevent unauthorized access and limit privacy incidents.

Without this clear framework, your business exposes itself to serious consequences.

In this article, we will explore how effective data governance, combined with strong IT protection practices, is essential to ensure your compliance with Law 25.

The role of cybersecurity in your compliance with Law 25

Law 25 imposes strict requirements for protecting personal information. To comply, you must not only establish clear data governance rules, but also implement robust IT security measures.

The Act requires you to take security measures to ensure the protection of personal information that is collected, used, communicated, kept, or destroyed.

Commission d’accès à l’information (CAI)

In practical terms, this means your SME must implement several measures to protect the personal information you collect. This may include:

• Implementing an access management strategy for your sensitive data.
• Encrypting critical data, both at rest and in transit.
• Training your employees on IT security best practices.

Failing to take these measures can lead to serious consequences, such as security incidents, fines, and legal penalties that can harm your organization’s reputation and long-term viability.

Ask yourself this question: is your business ready to handle the media crisis caused by a personal information leak on the Dark Web?

Well-structured data governance not only helps you comply with Law 25, but also strengthens your company’s resilience against cyberthreats. It is also part of a broader set of issues affecting the protection of Quebec SMEs.

The risks of poor personal information governance for your business

Ignoring Law 25 obligations represents a major vulnerability for your organization. In addition to exposing you to costly penalties, it can also affect trust-based relationships with your clients, partners, and employees.

Deficient data governance jeopardizes not only the security of your IT systems, but also your financial and operational stability.

Here are the main risks associated with poor management of personal information:

Costs and financial consequences

In addition to non-compliance fines that can reach up to 4% of your revenue, the costs associated with a cybersecurity incident can quickly add up. Here are some of these expenses:

• The costs to repair affected systems
• Costs related to business interruption
• Paying a ransom (if you decide to pay it)
• Crisis management costs
• Costs related to strengthening your IT security

These costs can quickly become overwhelming—for both your budget and your reputation.

The compromise of your personal data

A cyberattack or poorly controlled access can not only lead to financial losses, but also compromise your sensitive data, making it accessible to cybercriminals who could resell it on the Dark Web.

Loss of credibility with your stakeholders

You have built trust-based relationships with your clients, partners, and employees. Not being transparent about how you use personal information can affect them. This lack of clarity can create doubt and mistrust toward your business and jeopardize your business relationships.

Disruptions related to managing IT security incidents and internal processes

A data breach incident leads to far more than fines. It disrupts the entire internal operation of the business. Processes must be reassessed, employees trained, and communications with stakeholders must be managed urgently and transparently. Incident management becomes costly, both in human and operational terms.

Compromises caused by human error

Sometimes, a simple oversight is enough to compromise your organization’s personal information.

For example, accidentally sending an email containing sensitive information, such as client data, to an unauthorized recipient may seem harmless, but it is nevertheless a violation of the Act respecting the protection of personal information. Such an error can lead to significant financial penalties and undermine your clients’ trust.

And this type of negligence is far from an isolated case. Human error is one of the main security gaps within SMEs.

Data governance is part of your compliance with Law 25

To comply with Law 25, it is not enough to protect the personal information you hold. You must also structure its management to ensure its integrity, accessibility, and, above all, its security! In practical terms, you must establish rules and practices to manage and protect your information assets effectively.

Poorly managed or non-existent IT data governance exposes your business to multiple repercussions, human or otherwise.

A final reminder of the 4 fundamental elements of effective data governance

1. Identify and classify the personal data you collect

2. Define clear governance policies that include each person’s responsibility for managing sensitive information

3. Implement rigorous access controls

4. Use robust protection measures

Uncontrolled access to sensitive data can easily lead to a leak or compromise of critical information. To learn how to structure it and strengthen the security of your sensitive information, read our article on access management and securing sensitive data.

Does your business meet the requirements of the Act respecting the protection of personal information?

Managing personal information is a crucial issue your business cannot ignore. Rigorous data governance, supported by robust IT security measures, is essential to ensure your compliance with Law 25 and protect your organization from the risks of security incidents.

Protecting sensitive information must not be pushed to the back burner. It is at the heart of your compliance with Law 25 and your organization’s overall security. If you do not implement sufficient digital protection measures, you expose your business to serious repercussions that will affect both your reputation and your business relationships.

Acting now means protecting your business and preserving the trust of your clients and partners.

Access management is an important step in structured data governance. By controlling who has access to what, you reduce the risk of leaks and strengthen the protection of your sensitive information. Discover how to structure and secure this access in 4 simple steps.

FAQ – Your questions about compliance with Law 25 and IT security

1. What is Law 25 and why does my SME need to comply with it?

Law 25, or the Act respecting the protection of personal information, strengthens the security of personal data in Quebec. It requires businesses to take measures to protect the sensitive information they collect. If your business holds personal information (whether from employees, clients, or partners), you are required to comply with this legislation. Non-compliance can result in substantial fines and damage to your reputation.

2. What are the risks if my SME does not comply with Law 25?

• Significant financial penalties
• Loss of trust from your employees, clients, and partners
• Legal consequences
• Increased security and privacy risks

3. How does IT security help comply with Law 25?

Digital protection is essential to protect personal information in accordance with Law 25. It includes measures such as:

• Encrypting sensitive data during storage and transfer.
• Securing your systems and applications (antivirus, firewalls, regular updates).
• Implementing an access and identity management strategy.
• Training employees on best security practices and personal data management.
• Implementing a policy for using personal devices in a professional setting (BYOD)
• And much more!

4. Does my business need to comply with Law 25 even if it does not sell directly to consumers?

Yes. Even if your business operates strictly in B2B, the Act respecting the protection of personal information also applies to you. Think about it: you likely have access to sensitive information about your employees, such as their social insurance number or home address.