By Protecting Client Data, Consultants Protect Themselves

In consulting, information is everything. But if that information is not protected, HR consultants and their clients could experience huge losses. In addition, lawsuits and liability claims might threaten the viability of a consulting business.

HR consultants can take steps to protect the consultancy’s data and assure clients that their data and competitive information is safe and confidential. However, while most consultants are aware of the value of back-up systems and virus scanning software, those are just starting points for ensuring the safety of the consultancy’s and the clients’ information.

At the outset, HR consultants should be thoughtful about the information they gather and store on computers.

Brian Lapidus, chief operating officer of Kroll Fraud Solutions in Nashville, Tenn., says there are several simple rules to keep sensitive data from falling into the wrong hands:

While consultants need to secure the information in their possession, they also need to ensure that the data they have is really needed, and not extraneous, says Lapidus. “Thieves can’t steal what you don’t have,” he says.

Savvy consultants can use data protection as a competitive advantage, says Chris Dittus, PHR, founder of August Communications Consulting in Austin, Texas. A consultant can be a much more valuable commodity to a potential client, says Dittus, by telling clients, “this is how I protect your information, this is what I provide to my clients so they feel comfortable that their information is going to be secure and that it’s not going to be lost or used for other purposes.”

While technology offers protection for data, HR consultants are most at risk in terms of the simple, everyday actions they take, or fail to take, when working with client information.

Susan Stockton, senior vice president and managing director of Corporate Growth Consultants in Wylie, Texas, says, data protection “is a hot topic with my clients.” To provide the best possible data security to clients, Stockton uses the same approach to information security she used while working for larger companies. These common-sense approaches do not call for expensive technology:

But technology can play an important role in responsible client-data protection. John Livingston, a security expert and CEO of Absolute Software, based in Vancouver, Canada, says a combination of written policies, business processes and technology are necessary to protect data from being compromised:

Laptop computers present additional problems in terms of security. Their very portability and convenience makes them subject to theft or loss, which puts data at risk.

Leo Bletnitsky, president of Desktop Valet, a division of LBA Networking Inc. in Las Vegas, has been involved in information technology management and security consulting for more than 13 years. “HR consultants travel to numerous client offices, often plugging their personal laptops into the networks of their clients,” he says. “Due to this activity and the confidential nature of the information they access, computer security is a major concern.” Desktop Valet employees’ laptop computer security practices are as follows:

Ultimately, a heightened awareness of the value and sensitivity of the information that HR consultants maintain on clients is the first step in developing systems and processes to protect that information.

Lin Grensing-Pophal, SPHR, is a Wisconsin-based business journalist with HR consulting experience in employee communication, training and management issues. She is the author of Human Resource Essentials: Your Guide to Starting and Running the HR Function (SHRM, 2002).