The General Data Protection Regulation (GDPR) is the most significant change to data privacy regulations in 20 years. Are you ready for the GDPR? This new set of rules is forcing organizations to redesign their processes, policies, and strategies to meet new standards regarding how personally identifiable information can be collected and stored, how users can control that data, and how it should be destroyed when it’s no longer needed. If your organization handles personal data on people – customers, suppliers, partners, or other individuals – then you need to know about the General Data Protection Regulation (GDPR). It goes into effect May 25th, 2018…
What is the General Data Protection Regulation?
The GDPR is a new set of data privacy regulations that apply to organizations handling data on EU citizens. If you have customers, suppliers, operations, or other ties to Europe, GDPR affects you. It replaces the Data Protection Directive of 1995, which was enacted before the internet even existed as we know it today. The GDPR is a regulation that applies to businesses in any industry that collect and store the personal data of EU citizens for any reason. It replaces the patchwork of national data protection laws currently in place across the EU, which have led to both confusion and significant fines for companies not complying with data privacy rules. The GDPR replaces the Data Protection Directive of 1995 and applies to the processing of personal data of EU citizens that happens in the EU. The GDPR applies to both controllers and processors. A controller has the responsibility to determine how and why personal data is processed, whereas a processor acts on the controller’s behalf and processes data.
Who does the GDPR apply to?
The GDPR applies to any organization that collects or processes personal data on individuals residing in the European Union. If you have customers, employees, or suppliers in the EU, then the GDPR applies to you, regardless of your company’s location. If your business has any ties to the EU, then the GDPR applies to you. For example, if you have an internet-based business and collect data from EU citizens, you must comply with the GDPR even if your company is based in the US. The GDPR applies to any organization outside the EU that offers goods or services to individuals in the EU or monitoring the behaviour of EU individuals.
What are the penalties for non-compliance?
If an organization fails to comply with GDPR, they could face significant financial penalties from regulators. Companies can be fined up to 4% of annual revenue or €20 million – whichever is greater. Since GDPR has such a large potential impact, organizations are working to comply as quickly as possible. The GDPR becomes enforceable on May 25, 2018, and businesses are scrambling to be ready. Unfortunately, many organizations are not ready for GDPR. It is clear that many businesses have not invested enough in GDPR compliance. It isn’t uncommon for organizations to discover that they are not GDPR-compliant even after attempting to audit their systems and processes. This is because it is nearly impossible to comply with GDPR in its entirety. To meet the requirements of GDPR, organizations must completely remake their data protection strategies, processes, and infrastructures. It’s not a simple matter of “adding a few clauses” to a pre-existing data protection plan.
How to become GDPR compliant
As we have mentioned above, the GDPR is forcing organizations to completely redesign their processes, policies, and strategies to meet new standards regarding how data can be collected and stored, how users can control that data, and how it should be destroyed when it’s no longer needed. Here are a few steps that can help you become GDPR compliant.
Bottom line
The GDPR will have a significant impact on businesses worldwide, but it has the potential to be a positive change. The GDPR is designed to protect the personal data of EU citizens and require businesses to provide better privacy protections. If your organization handles data on EU citizens, GDPR affects you. It is likely that your organization has not yet implemented the significant changes required to meet GDPR requirements. It’s important to begin taking steps to prepare for GDPR now, before it is too late.
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