In the digital era, data protection has become a crucial concern, and the General Data Protection Regulation (GDPR) introduced by the European Union (EU) is at the forefront of this paradigm shift. Understanding GDPR is paramount for companies that offer services to European clients, as non-compliance can lead to substantial fines.

What is GDPR?

GDPR is a comprehensive data protection regulation set by the EU to protect the rights of data subjects, specifically European citizens whose personal data is collected and processed by companies. Its far-reaching scope extends not only to EU-based companies but also to foreign entities processing data of EU residents. This harmonization of data protection regulations across the EU aims to facilitate compliance for non-European companies. However, it comes with stringent data protection rules and the potential for severe penalties of up to 4% of their worldwide turnover for non-compliance.

“The proposed new EU data protection regime extends the scope of the EU data protection law to all foreign companies processing data of EU residents. It provides for a harmonization of the data protection regulations throughout the EU, thereby making it easier for non-European companies to comply with these regulations; however, this comes at the cost of a strict data protection compliance regime with severe penalties of up to 4% of worldwide turnover.” 

New draft European data protection regime

The Deadline and its Implications

Scheduled to come into effect in May 2018, GDPR mandates a new level of accountability for businesses handling personal data. One of the most significant challenges posed by this regulation is the requirement to report certain data breaches within a mere 72 hours. Failure to meet this tight deadline can have serious consequences for businesses.

The Challenge of Rapid Data Breach Response

Complying with the 72-hour reporting window demands an unprecedented level of preparedness and efficiency. Many companies struggle to respond to data breaches swiftly due to the lack of context surrounding the affected data. Traditional methods of investigation and analysis often take weeks, which is simply not feasible under GDPR’s guidelines.

Questions such as:

• Which data do we share with a hacked member company?
• Where did we get this data from?
• Who is responsible for dealing with the hack?
• What controls do we have in place and how have we limited the impact?

must be answered quickly and completely.

The Solution: Embracing Data Governance

To meet the stringent demands of GDPR, companies must prioritize data governance. Having a robust data governance framework is essential to maintain compliance and minimize the risk of data breaches. A well-designed data governance system ensures:

1. Contextual Understanding: Maintaining a register of sensitive data tagged with relevant indicators allows businesses to contextualize their data. Different lines of business may have varying contexts, and a flexible approach is necessary to cater to these diverse perspectives while still presenting an enterprise-wide view.
2. Data Usage Policies: Clearly defined data usage policies linked to specific data elements provide a roadmap for employees, ensuring responsible data handling and accountability.
3. Data Traceability: Businesses must track the origin, purpose, processing systems, and authorized access points of the data they handle. This traceability is crucial to meet GDPR’s reporting requirements promptly and accurately.
4. Breach Analysis: A well-implemented data governance system aids in quickly identifying data subjects involved in a breach, allowing for swift and efficient breach analysis and reporting.

Preparing for the Future

GDPR’s significance cannot be underestimated, and its influence extends beyond the EU’s borders. Similar data protection regulations, like the Protection of Personal Information Act (PoPIA) in South Africa, are also being implemented worldwide. South African companies with international operations can stay ahead of the curve by embracing data governance proactively.

In conclusion, GDPR is a landmark regulation that elevates the importance of data protection and privacy rights. By understanding and complying with GDPR, companies can build trust with their European clientele and enhance their global reputation while ensuring data integrity and security.