Why does the company or organization have to abide by data, Computer Network Security

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Why does the company or organization have to abide by data

Problem

Some states (U.S states) define a data and security breach as the loss and exposure of citizen privacy data in an unencrypted manner. If a state encountered a data and security breach, but no citizen's privacy data was compromised given that it was encrypted in a steady-state within a database, does the company or organization have to abide by the data and security breach notification law?

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Computer Network Security: Why does the company or organization have to abide by data

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