Definition
Encryption
In one sentence
Encryption is the process of converting readable data into an unreadable form using a cryptographic algorithm and key, so that only parties with the correct key can read it.
Data loss preventionReal risk of significant harmPersonal Information Protection and Electronic Documents Act
Encryption Explained
Encryption protects data in two main states. Encryption in transit, such as TLS for websites and email, protects data moving across networks. Encryption at rest, such as BitLocker on Windows laptops or FileVault on Macs, protects stored data if a device or disk is lost or stolen.
For Canadian businesses, encryption has direct privacy law consequences. Under PIPEDA, the probability that personal information will be misused is a key factor in deciding whether a breach creates a real risk of significant harm. A lost laptop with full-disk encryption and a strong sign-in is a very different event from an unencrypted one.
Key management is as important as the encryption itself. Recovery keys should be stored securely, for example escrowed in Microsoft Entra ID or Intune, so that IT can recover a device without leaving keys exposed. Practical baselines for SMBs include full-disk encryption on all laptops, encrypted backups, TLS on all websites and portals, and encryption for sensitive files shared externally.
General information for Canadian organizations, not legal advice.