There are several reasons why it is a good practice to implement a data sharing agreement in your company:
Legal Compliance: Considering the privacy laws in place today, such as the GDPR in Europe, it is prudent for entities that carry out some data sharing activities to have a DSA in place. This helps to regulate data sharing and be compliant with the relevant privacy legislation.
Data Security: A robust data sharing agreement also protects your data’s integrity by setting out guidelines on how the data should be transmitted, mitigating the risks of data breaches.
Trust & Privacy: By having an explicit agreement, you’re establishing trust with your partners and customers by showing them that you are implementing privacy-friendly practices for protecting the data shared. Transparency in data handling is a critical factor in establishing and maintaining this trust.