The General Data Protection Regulation has been causing a bit of tension lately, with many businesses concerned about how they will meet the new requirements. Many are also concerned about the potential GDPR risks to businesses. We’ve already outlined the requirements for meeting the bar, but what are the potential risks and how can your legal chambers seek to overcome them?
The Main Points of GDPR
To summarise how GDPR could affect your business, these are the most important changes that will take place under the new regulation:
- Tough fines for non-compliance
- Accountability – think of this as a keyword in the whole process. Businesses will need to be able to provide evidence of permissions and all movement of private information, as well as providing evidence of how that information is protected.
- Data processors – GDPR outlines specific requirements for data processors, including the implementation of appropriate security standards.
- Consent – Changes in this area include allowing individuals as much ease in withdrawing consent as there is for giving consent. This will apply to a wider range of information, including IP-addresses for example.
With proper, systematic implementation, these changes should not be difficult to achieve. When considering the risks GDPR could pose to your business, non-compliance may be significantly more worrying than anything else.
GDPR Risks To Business
Although much of GDPR is already laid out in the current UK Data Protection Act, businesses are still having to put a lot of work into meeting the newly required criteria. Many are worried that they will not have everything in place by the time the new regulation comes into force, and the results could be very damaging.
Fines for non-compliance can reach 20 million euros, or 4% of total global revenue of the preceding year. For a large number of businesses, this could result in bankruptcy.
Following comprehensive professional guidelines on preparing for GDPR will help you get on top of things in time. This will greatly reduce the risk of fines being imposed. Some experts believe that the benefits of compliance outweigh the negative possibilities, with businesses being able to demonstrate a greater respect for personal privacy and rights of the individual.
At the same time, consumers are going to benefit hugely from the added protection of their rights and identities. Incidents of hacking and identity theft are constantly on the rise, and GDPR is a positive move in making this more and more difficult for cyber criminals to achieve.
Implementing GDPR will take a considerable amount of planning and preparation, but with careful management it is far from impossible.
From a business perspective, data privacy will have to play an important role in the day-to-day management of any business, from top to bottom. Whatever changes you’re planning to make to the running or management of your business in light of GDPR, the crucial point is to start now and not delay, ensuring that everyone is aware of the changes and requirements at all times.
It might be worth considering appointing a designated Data Protection Officer, who’s primary responsibility is to keep data safe and secure. That way, you have a better chance of ensuring your data is being used in a conformative manner. GDPR compliance is almost certain to bring added costs, and increased workloads, but the risks of non-compliance greatly outweigh anything GDPR compliance could throw at you. The important thing to remember is that you have time to get it right if you start now.
The final impact to consider are the increased costs which come with extra employees, training requirements, and the possibility of updated systems and technology. Research by Veritas Technology has found that companies could end up spending an average of 1.3 million euros purely in their efforts to comply.
There may also be savings involved, however, with the European Commission estimating that the new system could save companies up to 130 million euros a year. The process of data protection will be centralised to your own business, reducing the administrative and cost burdens of accessing new markets. As GDPR will be implemented across Europe, it will also make it easier for businesses to expand across borders.
For step-by-step guidance on GDPR compliance and implementation, contact CBSIT today. Out expert IT professionals can help you to manage new additions to your worries and workload, reducing the potential GDPR risks to your business.