Most Intriguing Points You Need To Remember About GDPR Compliance
What is GDPR?
GDPR, General Data Protection Regulation, is a compliance regulation that requires businesses dealing with clients from European countries to protect personal data and privacy of EU citizens. Adopted by the European Parliament in April 2016, the GDPR covers stringent protection standards for transactions that materialize within EU member states, replacing an outdated data protection directive established in 1995. GDPR also covers the exploration of personal data occurring outside the EU.
The regulations and provisions under GDPR are consistent across all 28 EU member states, requiring companies to comply with one standard of data security. Any incident of non-compliance would cost a great deal to companies. Companies doing business with EU client have until May 25 to adopt the strict new rules under GDPR regulation.
Types of data GDPR protects
GDPR data security articles contain what organizations should perform and implement to ensure high data security for customers. It also suggests what to do in the case of data breach. The following are some data types GDPR supports:
- Basic identification such as name, ID numbers and address
- Online footprints like IP address, cookie data and RFID tags
- Biometric, genetic & heath related data
- Racial and ethnic data
- Sexual orientation and intimate choices
- Political opinions
Key takeaways from GDPR regulations
- Organizations must assess existing systems and processes for data handling tactics and perform gap analytics to discover the areas of improvement
- Companies must insist on security by design/by default to ensure the data security is considered from the planning phase itself, before the development begins
- Companies should consider risks involved while ensuring security with specifics like:
- 1. Encryption of personal data.
- 2. Timely restoration of personal data at the moment of security or technical issue
- 3. Integrity and confidentiality of data processing systems and services
- 4. Regular assessment of security practices and their effectiveness and solutions.
- Regular removal cleaning of unnecessary clutter
- Large organizations should emphasize centralized application data repositories for enhanced control over data
Companies to be affected by GDPR
Each company that does business with citizens of EU states and handles and stores their personal information needs to comply with GDPR. They should meet the following criteria:
- Operations/presence in an EU country
- Businesses processing personal data of European residents
- Having more than 250 employees OR
- Companies with fewer than 250 employees whose practices may affect the rights and freedom of data management or who handle sensitive personal data
Industries likely to be most affected by GDPR may include:
- IT and software technology
- Online retailers
- Online development platform services
- Financial services
The cost of GDPR compliance
According to PwC survey conducted in 2016, to meet the GDPR compliance of data security, 68% of US based companies are likely to invest up to $10 million whereas 9% expect to spend more than $10 million.
However, the recent Propeller Insights survey of this year shows that almost 36% of respondents will spend $50000 to $100,000, and 24 percent will probably go from $100,000 to $1 million. People interested in spending beyond $1 million are only 10%. As the deadline of 25th May comes closer, security expectations of companies alter.
The impact of GDPR on companies
If GDPR is creating regulation to protect data of EU citizens, it is also equally spreading alarm among business bodies globally. For instance, Ovum Report suggests that nearly 2/3rd of US companies are afraid they may have to rebuild their business strategy in Europe. According to them, GDPR may put them at a competitive disadvantage with European companies.
As consumer data privacy gets strict, companies will be compelled to invest more efforts to improve their systems and processes and offer immense protection for customer IP address and cookies data.
If you have not adopted sincere security and customer privacy standards yet, complying with GDPR regulations for your company may appear too massive. However, even though the process is a little demanding, GDPR is a comprehensive approach for data security. GDPR regulations are built to ensure highest customer safety, which eventually produce positive results for an organization.
If you are an organization or looking to carve strong online presence for your business, Spaculus is here to provide you a range of trustworthy talents and competitive resources to your satisfaction. We comply with the best security standards and harness industry-leading technology to weave digital solutions that are not only flawless but also have impenetrable security against vulnerability.