By | Linda Carter
In a time where data plays such a big part of modern-day life, it is absolutely vital that businesses have a clear understanding of GDPR and take action to make sure that they are compliant. The General Data Protection Regulation (GDPR) is an EU regulation designed to strengthen an individual’s right and ability to control their personal data and privacy.
Fit for the Digital Age
Implemented in 2018, GDPR was designed to make Europe ‘fit for the digital age’ and aims to simplify the regulatory environment for businesses so that they and individuals can benefit from the digital economy. Under GDPR, businesses must ensure that personal data is collected legally as well as protected from misuse and exploitation.
GDPR increases the security of data because there are clear regulations for ways in which it must be obtained, managed and protected. In a time where cybercrime is an enormous issue and on the rise, it is helpful for people to know that organizations are taking measures to protect personal data. Additionally, the right to erasure empowers people to request that their personal data be removed when consent is withdrawn which gives people greater control over their data in a time where so much is collected online.
Fines for Non-Compliance
Failure to comply with GDPR can result in a fine, which will depend on the severity of the breach with a maximum of 20 million euros or 4% of worldwide turnover. There are a handful of factors that are considered when it comes to a fine, including the severity of the breach, whether it was intentional or negligent, if the company has had previous breaches and the type of data that is involved.
It is clear that a GDPR fine could be devastating for a business, but it is not the only reason that companies need to be taking GDPR extremely seriously. Brands can suffer significant damage in terms of their reputation if there is a breach or data has been obtained illegally. In fact, a report showed that 72% of people would boycott a company that disregarded data protection while 62% would blame the company and not the hacker.
Not only this, but there could be further financial ramifications as individuals also have the right to data protection breach compensation for damages which result from infringement. When you consider the fact that so many people could be affected by a breach, it means that the total compensation amounts can be staggering and difficult to manage.
As you can see, GDPR is incredibly important and businesses need to make sure that compliance is a priority. This is not only because a breach could cost the company a fortune, but also because data protection is so important in today’s day and age and vital for building trust with today’s consumer.