What occurs when data is shared with individuals outside of the organization?

The process of sharing data with individuals outside of the organization is accurately described as data sharing. This concept encompasses the transfer or dissemination of information beyond the internal confines of an organization to external entities, which can include partners, stakeholders, vendors, or the public. Data sharing is essential for collaboration, transparency, and operational efficiency, but it also introduces specific risks related to data security and privacy.

Understanding data sharing is crucial for organizations, as it involves considerations around data governance, compliance with regulations such as GDPR or HIPAA, and the implementation of appropriate safeguards to protect the shared data. Effective data sharing policies encourage responsible handling of information while maintaining the organization's security posture.