Manrique Hidalgo
Digital transformation is no longer a strategic option, but rather an operational reality for most companies in Costa Rica. The adoption of technologies such as cloud platforms, data analysis tools, automation, and digital customer service systems has had a major impact in terms of competitive advantages. However, it has also brought with it new risks, responsibilities, and regulatory expectations that companies cannot ignore, especially when it comes to personal data protection.
In this context, corporate governance plays an essential role. A solid governance structure not only organizes decision-making but also incorporates controls and policies that protect one of the most sensitive assets of any modern company, such as, but not limited to, the personal information of its customers, suppliers, employees, and business partners.
I- Regulatory framework applicable in Costa Rica
In our country, Law 8968, entitled “Protection of individuals concerning the processing of their personal data,” and its regulations (hereinafter the “Regulations”) establish the principles and obligations that organizations that collect and manage personal data must comply with. Although these are not new regulations, digitization has increased the amount and sensitivity of the information handled by companies, making their correct interpretation and application essential.
These principles, such as informed consent, data quality and accuracy, use for legitimate purposes, and the obligation to implement security measures, must be integrated into the very design and structure of corporate governance and not be considered solely as a formal compliance requirement.
II- Individual rights and corporate obligations
Data subjects have rights that are duly detailed in the Regulations, such as: accessing the information held about them, requesting corrections, objecting to certain uses, and even requesting the deletion of their data in certain cases. This implies that companies must have efficient internal mechanisms in place to respond to requests and ensure the traceability of the information lifecycle.
From a corporate perspective, this is not only a legal obligation, but also an element that strengthens the relationship of trust with its employees, suppliers, and customers, an intangible asset that is increasingly valuable in competitive markets.
III. Registration of databases and information transfers
Depending on the nature and purpose of the databases, some companies are required to register them with the appropriate authority, such as the Agency for the Protection of Residents’ Data (PRODHAB). Even in cases where registration is not required, it is recommended that companies implement contractual and administrative measures to ensure that third parties or internal company personnel with whom they share data comply with legal standards of security and confidentiality.
The mobility of data in digital environments requires reviewing contracts, internal policies, and information flows to prevent breaches that can lead to penalties, personal liability for administrators and their legal representatives, or even damage to one of the company’s most important assets: its reputation in the market in which it operates.
IV- Corporate responsibility in the digital age
Proper data protection governance requires appointing internal officers, documenting processes, managing risks, and keeping policies up to date. It is not just a matter of avoiding penalties, but also of ensuring operational continuity, mitigating reputational risks, and positioning the company as trustworthy in the eyes of investors, business partners, and/or customers.
Organizations that integrate data protection into their corporate governance strategy not only comply with regulations, but also strengthen their competitiveness and credibility in the market.
In addition to the above, data protection is no longer an issue exclusive to technology or a simple regulatory requirement, but rather an essential component of modern corporate governance. In this same vein, and in an environment where information flows faster and faster, in greater volumes, and where the data handled by companies is given greater value, companies must ensure that they adopt policies, processes, and controls that are aligned with legal requirements and best practices, including international ones.
At Consortium Legal, we assist companies in reviewing, designing, and implementing corporate governance models that adequately integrate personal data management. If your organization wishes to strengthen this area, assess risks, or update its internal policies, our team will be happy to advise you.