Data Security Management: Risks, Controls, & Strategies

The average data breach in 2025 costs $4.4 million. In distributed operating models, costs often escalate because attack surfaces expand across locations, devices, and networks. A single compromised endpoint can cascade across systems and regions, creating security and compliance risks for enterprises operating globally.

In this article, we outline the fundamentals of data security management and practical strategies to support governance, auditability, and operational continuity.

What is data security management?

Data security management is a systematic approach that ensures that data stays protected throughout its lifecycle. It encompasses how you collect, store, access, share, and delete data while keeping it secure from unauthorized access, theft, or corruption.

Why data security management is important:

Establishing resilient and reliable data security management protects sensitive data, prevents data breaches, and ensures compliance with local regulations. 

• Protect data assets: This includes employee data, customer information, financial records, and intellectual property that support core operations and long-term value creation

• Prevents data breaches: Stops attacks before they succeed through standardized controls and continuous monitoring

• Maintain compliance with local regulations: Meet requirements of global data regulation laws, such as the GDPR in the EU, the California Privacy Rights Act in the US, and the Personal Information Protection Law in China.

Navigating data lifecycle states

Enterprises must secure data differently depending on how and where it is used. Each state of data introduces distinct risks, control requirements, and compliance considerations—especially in multi-system, multi-country environments.

• Data at rest: Information stored on devices or servers, such as laptops, cloud storage, databases, and backup systems. This data is vulnerable to loss, theft, unauthorized access, and ransomware if encryption and access controls are not consistently enforced across entities and regions.

• Data in transit: Information moving across networks, including data shared between users, applications, cloud platforms, and third parties. Without strong encryption and secure network controls, data in transit is exposed to interception, man-in-the-middle attacks, and leakage—particularly in distributed and remote work environments.

• Data in use: Information being actively accessed or processed, such as when employees view customer records, export reports, or work within applications. This is often the hardest state to secure, as it depends on identity governance, session controls, and real-time monitoring to prevent misuse or unauthorized access.

While cybersecurity protects your entire technology infrastructure, data security management focuses specifically on safeguarding sensitive data assets and applying controls based on data sensitivity, usage, and regulatory requirements rather than relying solely on network defenses.

For distributed teams, you can't rely on office perimeter security when employees work from home, coffee shops, and coworking spaces. Data moves across devices, networks, and applications outside traditional boundaries, making it essential that security controls travel with the data itself—regardless of location, device ownership, or network conditions.

See also: Endpoint Security Guide: How to Protect Remote Teams & Devices

Core elements of data security management

Effective data security management combines six key elements that work together to secure data.

Data classification

Start by identifying your data and how sensitive it is. Critical data includes:

• Personally identifiable information (PII), such as names, addresses, and social security numbers

• Financial data (payment information, bank accounts)

• Health records and medical information

• Intellectual property and trade secrets

Not all data needs the same protection level. Customer payment data requires stronger security than marketing materials. Classification enables risk-based controls, audit readiness, and regulatory alignment across regions.

Access control

Access control determines who can access specific data. Strong access controls operate on the Principle of Least Privilege (PoLP), which ensures nothing beyond the minimum access needed is granted. Other standard access controls include:

• Multi-factor authentication for sensitive data

• Regular access reviews to remove unnecessary permissions

• Automated deprovisioning when employees leave

• Session timeouts for inactive users

Since you can’t physically control who sits at each computer for distributed teams, identity and access governance becomes the primary control point.

See also: Authentication Methods: Types, Factors, and Protocols Explained

Data encryption

Data encryption protects information by converting it into unreadable code that only authorized users can decrypt.

To maintain data security standards, it’s best to encrypt the following:

• Devices (full disk encryption)

• Data in transit (VPNs, HTTPS)

• Data at rest (databases, cloud storage)

• Emails containing sensitive information

For remote teams working from home networks and public WiFi, encryption ensures that data stays protected even if networks are compromised. Modern encryption is transparent to users and protects automatically once configured.

Data masking

Data masking hides sensitive information in non-production environments. When developers test software, they don't need real customer PII. 

Data masking replaces sensitive data with realistic but fake information, reducing exposure risk while supporting development and testing at scale.

Monitoring and auditing

Track who accesses data, when, and what they do with it.

What to monitor:

• Access attempts (successful and failed)

• Changes to sensitive files

• Permission modifications

• Unusual patterns (mass downloads, off-hours access)

The General Data Protection Regulation (GDPR) requires documented evidence of data protection practices. Monitoring and audit logs support investigations, regulatory reporting, and internal controls.

Backup and recovery

Protect against data loss through regular backups of critical data. Common data backup strategies include:

• Regularly testing recovery procedures

• Storing backups separately from production

• Following the 3-2-1 rule (3 copies, 2 media types, 1 offsite)

• Automating backup processes

• Encrypting backup files

Store backups separately from production systems, so ransomware attackers can't encrypt both. This strengthens operational resilience and business continuity.

See also: Certified Data Erasure For Secure & Compliant Device Offboarding

Major data security risks

Data breaches

Data breaches involve external attackers targeting customer data, financial records, and intellectual property.

Now, the proliferation of AI presents increasing risk. According to IBM’s 2025 Cost of a Data Breach Report, 97% of organizations that experienced an AI-related security breach lacked adequate AI access controls.

Impact:

• Financial costs (averaging $4.4 million globally)

• Decline in customer trust

• Regulatory fines

• Legal liability

Breaches often start with compromised devices or credentials. This propogates across systems, vendors, and regions across a distributed workforce.

Ransomware attackers

Ransomware encrypts your data and demands payment to restore access. This threat is highly profitable for cyberattackers and highly disruptive for organizations. Attackers infiltrate networks through phishing or vulnerabilities, spread to as many systems as possible, encrypt files, and demand payment for restoration.

Distributed operating models increase exposure due to varied network security and device configurations, with remote workers on public networks providing easy entry points.

Insider threats

Not all threats are external. Insider threats include accidental exposure and intentional theft. Employees accidentally leak data by sending sensitive files to wrong recipients, losing devices, falling for phishing scams, or misconfiguring cloud storage as public.

Malicious insiders deliberately steal customer lists before leaving, sabotage systems, or abuse their access. Without strong access governance and timely offboarding, organizations face elevated data leakage and liability risks.

Compliance violations

Regulations require specific data protection practices. Violations trigger substantial fines.

Financial penalties are just part of the cost. Compliance violations damage reputation, trigger lawsuits, and create regulatory scrutiny.

See also: IT's Biggest Compliance Gaps: Are You Breaking the Law Without Realizing It?

Insufficient access controls

When access controls are ineffective, sensitive data exposure becomes a systemic risk rather than an isolated failure. Delayed deprovisioning allows former workers to retain access beyond their engagement, increasing the risk of data misuse or theft. Over-privileged accounts enable unauthorized access across multiple systems and datasets.

Shared or unmanaged credentials further compound the issue by eroding accountability and audit trails. Without consistent identity governance and access reviews, organizations face heightened exposure to data breaches, compliance violations, and internal control failures.

Unsecured devices

Devices accessing company data without proper security create major risks.

Common problems:

• Personal devices without security software

• Unencrypted laptops

• Devices on unsecured public networks

• Outdated software with vulnerabilities

Each unsecured device increases risk exposure.

See also: How to Cut Device Security Costs and Risks with Mobile Device Management

Strategies for maintaining data security

Implement strong access control

Require multi-factor authentication for all accounts accessing sensitive data. Review access permissions quarterly and remove access that's no longer needed. 

Additionally, automate deprovisioning so departing employees immediately lose system access. This reduces access gaps that frequently create downstream risk.

Use comprehensive data encryption 

Encrypt data at every stage. Enable full disk encryption on all devices so lost laptops don't expose data. Use VPNs to encrypt data across networks. Encrypt sensitive data at rest in databases and cloud storage.

For distributed teams, this is essential. You can't control the networks employees use. Encryption ensures that data stays protected even on compromised networks.

See also: ZTNA vs VPN: A Practical Buyer's Guide for Global Teams

Standardize security measures

Security measures only work when applied consistently. Use mobile device management to enforce security policies automatically. These policies include required password strength, mandatory encryption, automatic screen locks, and approved software.

Keep all software updated with security patches. Attackers exploit known vulnerabilities in outdated software. Automate updates, so they happen consistently.

Equip employees on data security

Your security is only as strong as your least informed employee. Train employees to recognize phishing emails, handle sensitive data properly, use strong passwords, and report security incidents quickly. Ongoing, practical training reduces human risk across distributed teams.

Secure all endpoints

There are a few key ways to secure all your endpoints. Use endpoint protection software that detects and blocks malware. Implement mobile device management that gives you visibility and control over devices. Enable remote wiping of lost or stolen devices to prevent data breaches.

Endpoint governance strengthens your overall security posture.

See also: Remote Device Management: A Practical Guide for Modern IT Teams

Conduct regular security assessments

Test your defenses regularly. Run vulnerability scans monthly to identify security holes. Conduct penetration testing annually where experts try to break into your systems. Perform security audits quarterly reviewing policies and practices.

These assessments help you improve security postures by catching problems early.

Maintain data backups

Protect against data loss through regular automated backups. Test backups to ensure you can recover when needed. Follow the 3-2-1 rule: 3 copies, 2 media types, 1 offsite.

Store backups separately from production so ransomware can't encrypt both. Use immutable backups that can't be modified once created.

Set up real-time monitoring

Configure monitoring that alerts you to suspicious activity. Watch for unusual data access, login attempts from unexpected locations, mass downloads, and security setting changes.

Develop an incident response plan to stay prepared. Efficient detection and response materially reduces breach impact. 

Manage third-party risk

Third-party vendors accessing your data create security risks. Assess vendor security practices before sharing data. Require vendors to meet your security standards. Use data sharing agreements that specify required protections.

Review vendor security annually. Consolidating through vendor rationalization can also reduce risk and improve operational efficiency.

See also: How to Create a Secure IT Policy: A Complete Guide

The impact of reliable data security management

Traditional security models were built around centralized offices, controlled networks, and managed devices. Employees worked on corporate hardware inside defined perimeters, allowing IT teams to enforce security through physical controls, network boundaries, and direct oversight.

Distributed work dismantles those assumptions. Data is accessed from thousands of locations, across a mix of corporate and personally assigned devices. Each user, device, and connection increases the attack surface, while ransomware actors increasingly target home networks and unmanaged endpoints as easier points of entry.

When teams operate across borders, organizations must comply with overlapping data protection regimes. Compliance obligations vary by location, data type, and usage, increasing enforcement and audit risk.

Effective data security management addresses these challenges by applying consistent, policy-driven controls wherever data is accessed or processed. Encryption protects data regardless of network conditions. Identity-based access controls limit exposure across systems and geographies. Automated policies and monitoring reduce reliance on individual behavior while improving auditability.

The result is lower risk exposure without constraining how teams operate. Employees can work from anywhere. Meanwhile, security, governance, and compliance remain centralized, consistent, and resilient.

See also: How to Create a Secure IT Environment For Hybrid Teams: A Complete Guide

Secure distributed data with Deel IT

Data security management ensures that data stays protected across your distributed workforce. It requires combining access control, data encryption, monitoring, and backups into a cohesive security framework.

Deel IT supports effective data security management through comprehensive device and security controls:

• Full disk encryption on all devices to protect data at rest
• AI-driven endpoint protection that detects and blocks malware
• Real-time threat detection to stop ransomware attackers
• Identity provider integration to control who accesses devices
• Automated provisioning and deprovisioning to eliminate access gaps
• Remote device locking and wiping to prevent data breaches from lost devices
• Detailed audit logs supporting investigations and compliance reviews
• Automated security policy enforcement demonstrating due diligence
• GDPR compliance tracking across 130+ countries
• 24/7 threat monitoring built for a distributed workforce

Book a demo with an expert to see how Deel IT protects critical data for global enterprises.