Confidential Data

Definition - What does Confidential Data mean?

Confidential data is information that is not available to the general public. In general, it is personally identifiable information (as opposed to aggregated data) that is considered private in nature, such as health information, addresses, prior work experience, and financial data. Businesses are required by federal and state law (varying by state), to implement and enforce policies and procedures intended to protect unauthorized retrieval of private information on the basis of legal responsibility. Essentially, confidential data can be subdivided into three categories known as employee information, management information, and business information.

WorkplaceTesting explains Confidential Data

Confidential data applies to personal documentation comprising of electronic and manual storage systems, which permit authorized members exclusive access to the source of private content. The main reason for preserving confidentiality is to safeguard undisclosed information from public knowledge given the prevalence of fraud and identity theft, which raises issues of mistrust, uncertainty, and dissatisfaction. Federal laws combined with state law(s), which vary by state, dictate regulatory policies and procedures for protection of confidential data such as personal identification, medical records, and company logistics details.

In essence, confidential data is a three-tiered construct, categorically defined as employee information, management information, and business information. Employee information can consist of address (home and email), social security numbers, and health information while management information includes employee disciplinary resolve, downsizing, dismissals and resignations, investigations into employee misbehavior, and lastly, business information containing projected profits/earnings, budget/expense reports, manufacturing and operational infrastructure, and personnel roster.

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