GDPR the European Data Protection Regulation, becomes enforceable on 25th May 2018. Let’s see what are the possible gains from this legal framework that is going to replace the Data Protection Directive in UK, which already goes back to 1995.
To realize the benefits of the law we first need to understand it a bit. GDPR is a framework by which the Council of the European Union and the European Commission intend to strengthen and unify data protection for EU residents.
However, an important point that you need to consider here as a UK based business is that this framework extends the scope of the EU data protection regulation to all companies even outside the EU when they process data of EU residents.
Can Brexit overrule the ruling of GDPR? Well GDPR and Brexit are not happening at the same time, in fact the GDPR comes into effect before the UK officially leaves the European Union on 29 March 2019 and even after the Brexit an equivalent set of data protection regulations need to be in place to continue trading with the EU.
Businesses across the world have to gear up for this change and all the organizations within/outside EU must comply with the legislation by May 2018. Though the implementation of GDPR has a lot of challenges including budget, existing data movement analysis, data discovery, infrastructure changes, and awareness training, it has a lot of benefits in terms of confidentiality, Integrity, and Availability of Customer Consent.
1. Standardization of processing Customer Data: - Before the GDPR age, every company has their own data processing and data security procedures and methodologies to meet customer data security objectives. The GDPR implementation brings all of them to a common level by encouraging and guiding them to have similar processing of customer data.
2. Customer consent is compulsory: - GDPR compliance would provide a transparent operating environment. It is mandatory for every business to take lawful data protection consent from customer before they can process their data. This is going to boost the customer’s confidence about the business or enterprise’s systems processing their data because they are aware of the fact that the business or enterprise is sincerely considering data privacy.
3. Huge penalty provisions to protect enterprise reputation: - The huge GDPR fines for damage of customer data would force businesses to look at data security most seriously and sincerely. Any failure to protect customer Personally Identifiable Information may cost business reputation and loss of market.
4. Customer retention and loyalty: - Though GDPR has been designed to serve EU natives, but once businesses accept it as a standard, the same standards and processes would make every customer EU or non-EU to have great faith in the enterprise data protection policy. The gain in the customer trust by a business enterprise would allow retaining the existing customer and attract more customers into their business service.
5. Minimized Data Breaches: - Proper data protection training to the people who are accessing the personal data on a regular basis would minimize the security incidents.
6. Data breach impacts can be reduced: - Because GDPR as per Article 55 makes it mandatory for the Data Controller to inform authorities within 72 hours after the controller is made aware of any data breaches. When the degree of the risk of the data breach is high, the Data Controller informs the natural person so as to take necessary safeguard to mitigate the risks.
The primary objective of GDPR is to safeguard confidentiality, integrity, and availability of a natural person’s data. It encourages enterprises to take additional steps to protect their reputation, raise customer’s trust and loyalty and not getting into legal/regulatory complications and financial penalties.
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