The Top 5 Privacy Risks Canadian SMEs Overlook
Most privacy problems in small and mid-sized businesses aren’t malicious. They’re accidental. And they usually come from simple gaps that compound over time.
Here are five of the most common privacy risks Canadian SMEs overlook, and how to fix them without turning your business into a compliance bureaucracy.
Risk 1: You don’t actually know what personal data you have
If you can’t answer “what data do we collect, where is it stored, and who can access it,” you’re operating blind.
What this looks like
- Customer data scattered across tools, inboxes, spreadsheets, and file drives
- No clear owner for “systems of record”
- Old exports living forever in shared folders
Fix
Start with a lightweight data inventory and vendor map. If you want a structured baseline, start here: Minimum Viable Privacy (MVP)
Risk 2: Vendor sprawl without clear boundaries
Your privacy posture is only as strong as your tool stack. Analytics, CRMs, support platforms, marketing tools, and AI add-ons often touch more personal information than you think.
What this looks like
- Tools receiving data “by default” without review
- No written rules for which vendors can handle sensitive data
- No deletion or exit plan if a vendor needs to change
Fix
Create a simple vendor checklist and require it for new tools. If you’re unsure where to start, a Privacy Impact Assessment (PIA) is often the fastest way to clarify data flows and risks.
Risk 3: Access control is messy (and off-boarding is slow)
Most real-world incidents come down to access. Too many people have too much access for too long.
What this looks like
- Shared logins and “everyone is admin”
- MFA not enabled everywhere
- Contractors still have access months later
- No access reviews
Fix
Implement MFA, least privilege, and a clean off-boarding checklist. If you want security leadership to tighten this across your environment, consider a Virtual CISO (vCISO)
Risk 4: Retention is undefined, so you keep everything forever
Keeping data “just in case” increases your exposure and makes incidents more costly.
What this looks like
- Old customer records kept indefinitely
- Support tickets and call recordings stored without a plan
- Backups or exports retained without limits
Fix
Define retention rules by data type and purpose, then implement deletion workflows. If you need policies written in a practical way, explore Policy Development
Risk 5: Incident response is vague and untested
When something goes wrong, speed and clarity matter. If you’re figuring it out during the incident, you’re already behind.
What this looks like
- No clear roles (who decides, who investigates, who communicates)
- No escalation triggers
- No checklist for containment and evidence
- No practice runs
Fix
Create a simple incident response plan and run a tabletop exercise. For a quick reality check, try the Security Incident Calculator
Want the fastest way to reduce these risks?
If you’re an SME, you don’t need perfect compliance. You need a repeatable baseline and clear next steps.
Start with Minimum Viable Privacy (MVP)
Or talk to us first: Book a call