In what ways can companies effectively balance the need for collecting and utilizing customer data for business purposes with the responsibility of safeguarding that data from potential security breaches and unauthorized access?

Companies can effectively balance the need for collecting and utilizing customer data for business purposes with safeguarding that data by implementing strict data protection measures, such as encryption and access controls. They can also prioritize transparency and obtain explicit consent from customers before collecting their data. Regular security audits and updates to ensure compliance with data protection regulations can help mitigate the risk of security breaches. Additionally, investing in employee training on data security best practices can help prevent unauthorized access to customer data.