From: bizjourmals.com

People talk. The risks connected to confidentiality rationalize why many people avoid doing business with friends.

Unlike a badly installed patio, the problem can’t be resolved by redoing the project. This problem often occurs when financial data is involved.

On the other hand, certain professions are subject to a confidentiality threshold, such as priests, attorneys and physicians.

How can you communicate the same level of trust when talking with friends about business? Here are five approaches:

1. Don’t provide information inadvertently

When someone arrives for an appointment and is shown into your office, make sure there are no clues about the identity of other clients. For example, a financial advisor in Northern California puts code numbers on binders in plain sight.

You can say, “Many people are curious about other people’s business. That’s why you will never see the name of a client on a binder or folder in my office. No one will ever see your name on a binder either.”

2. Emphasize your history of confidentiality

Acknowledge you run in the same circles. Have you ever told tales out of school? No.

You can say, “We’ve known each other for 10 years. We know many of the same people. It’s probably occurred to you that some may be clients already. Have you ever heard me mention names? If I haven’t done so in the last ten years, it’s unlikely I’m going to start now.”

3. Keep identifying details guarded

People like to talk about friends in common as a means of establishing rapport. You are honest. Your friends know it. You wouldn’t lie. But if you feel that questions about how you know those connections would reveal any information, be as vague as possible.

For example, you can say, “We met downtown,” or “We both work out at the same gym.”

4. Emphasize confidentiality even with spouses

Often, spouses are considered unofficial partners in the “family business.” The doctor/attorney/minister is bound by confidentiality. The spouse is often included on the honor system. Dual-income couples often have their own issues of confidentiality, leading them to establish ground rules. They will talk about work but not go into specifics.

You can say, “You are wondering if my husband will talk about our real estate transactions. We have a house rule. I don’t tell him how to fly his passenger jet and he doesn’t tell me how to sell real estate.”

5. Compartmentalize information

In movies, spies talk about the “need to know” basis. This likely happens in your business too. Make sure that sensitive information is password-protected. Only people with a legitimate reason for access can view it.

You can say, “Your concern is who has access to your personal information. You are a client of our office. Although we store data at our parent company’s home office, the only people in the office able to access your account information are my assistant and myself, plus the managers legally responsible for account supervision. The data is password-protected. Someone at another desk can’t access another person’s accounts.”

Communicating client confidentiality primarily involves satisfactorily addressing “what if” situations. Once you understand their concerns, you can explain how their information is safeguarded. Ultimately your integrity is your most persuasive reason.