With the deadline of the General Data Protection Regulation (GDPR) fast approaching, it’s a hot topic of conversation for businesses. GDPR is set to affect both the way in which businesses utilise and store client data, as well as help tighten up online security. But beyond this, many businesses are wondering how the impact of GDPR is going to affect them.
While the deadline of the end of May 2018 has encouraged many companies to rethink their strategies regarding the handling of personal data in order to comply with GDPR guidelines, it is thought that the impact of GDPR will also have an impact upon advertising standards within the EU.
Predicting the impact of GDPR comes with many challenges, as there are a number of external factors that could potentially have an effect on the new regulation. However, preparing your business for the GDPR deadline well in advance will help to ensure that you are equipped for what’s to come.
The importance of compliance with GDPR
Under GDPR guidelines, businesses can only utilise European consumer personal data with their consent. EU citizens will also have the right to request that all of their known personal data be deleted from company files at any time.
This means that businesses have had, or will have to, restructure how they currently collect and store the personal data of their clients, as they will need to have a clear audit-trail for how the data is stored. They will also need to be able to provide evidence that their security systems are an adequate resource for protecting personal data.
This has been a huge project for many businesses, but the penalties for non-compliance are severe and may include either a €20 million fine, or 4% of annual revenue, depending on which of the two values is higher.
While it could be argued that the impact of GDPR has put businesses under unnecessary pressure to re-work the safety and security of their online infrastructure, updating online resources to ensure that they are efficient, technologically sound and compliant with new GDPR policies is in many ways a positive thing. Restructuring online security systems will guarantee that they function proficiently, are well organised and kept up to date.
In this manner, the impact of GDPR has already had a positive effect on many businesses. It has facilitated the identification and replacement of inadequate systems with more appropriate, alternative security measures.
It has also identified that anyone involved with data handling will need to be trained on GDPR guidelines to ensure that they are adhered to. Therefore, the impact of GDPR will have a positive effect on job opportunities, creating and bolstering the role of the Data Protection Officer. It will also provide employees with the opportunity to receive further training to ensure that they are fully educated on the topic of GDPR and online security.
The impact of GDPR on handling personal data
The main impact that GDPR will have on businesses is the overhaul of current procedure by which client personal data is handled and stored. This will have a different impact on technology sectors depending on how much access or ownership they have to first-party data from their consumers.
This is why ad servers will be affected by the impact of GDPR. Ad servers often collect passive data through sources such as ad delivery, but now under GDPR rules, they will need to have consent from the consumer to access and use such information.
Not only does this give more power over the security of personal data to the consumer, but it provides businesses with the opportunity to seek innovative ways to update their security measures regarding personal data.
The positive impact of GDPR
While many people may think that the impact of GDPR will only be felt in Europe, it is predicted to have a global reach, and therefore a global impact upon the technology sector and beyond.
GDPR has provided businesses with a unique opportunity to address essential issues regarding data protection. This could potentially see an increase in collaboration and innovation in tackling technological issues in the future.
Although it will be a significant undertaking for businesses, the long-term impact of GDPR is set to improve the way in which personal data is consumed, stored and secured.
If you would like to discuss ways in which to prepare for GDPR ahead of the deadline at the end of May, call CBS today on 020 3355 7334 for guidance on ensuring the impact of GDPR is a positive one for your business.