Data is quickly turning into the lifeblood of the worldwide financial system. In the world of Big Data and synthetic intelligence, knowledge represents a brand new sort of financial asset that may supply corporations a decisive aggressive benefit, in addition to injury the fame and backside-line of people who stay unsuccessful at making certain the safety and confidentiality of important company and buyer knowledge.

Despite the extreme repercussions of compromised knowledge safety, till just lately, the fines for breach of knowledge safety laws have been restricted and enforcement actions rare. However, the introduction of a probably revolutionary European General Data Protection Regulation (GDPR) is probably going to rework the best way knowledge-pushed corporations deal with buyer knowledge by exposing them to the danger of hefty fines and extreme penalties within the occasion of incompliance and knowledge breach.

In this text, I’ve tried to summarise the implications of GDPR implementation for knowledge-pushed corporations, in addition to the measures companies can take to make sure the safety and privateness of shopper’s knowledge and keep away from the penalties related to non-compliance.

How Does GDPR Impact Data-Driven Organisations?

The General Data Protection Regulation (GDPR) stands out from all present laws due to its breadth of shopper knowledge safety. From circumstances on cross-border knowledge switch to the necessity to implement, assessment, and replace satisfactory technical and organisational measures to shield buyer knowledge, the GDPR introduces a number of new legislative necessities that may considerably influence the best way companies gather, handle, shield, and share each structured and unstructured knowledge. I’ve described a number of of crucial ones under.

Valid and Verifiable Consents — It might be argued that the GDPR is all about consent, it protects European residents by giving them the means to object or give permission to course of their private knowledge. The GDPR units out stringent new necessities for acquiring a consent for the processing of private knowledge from clients. According to the brand new laws, corporations ought to make the method of withdrawing a consent as straightforward as offering a consent. Furthermore, the consent must be specific and properly knowledgeable with full transparency on the meant objective and use.
Data Protection by Design and Default — Up till now, companies have been required to take technical and organisational measures to shield private knowledge. But implementation of the GDPR would require corporations to show that the info safety measures are constantly reviewed and up to date.
Data Protection Impact Assessment (DPIA) — DPIAs are utilized by organisations to determine, perceive, and mitigate any dangers which may come up when creating new options or enterprise new actions that contain the processing of buyer knowledge, corresponding to knowledge analytics and all knowledge-pushed purposes, together with BI, knowledge warehouses, knowledge lakes, and advertising purposes. GDPR makes it a compulsory requirement for all organisations to conduct a DPIA and seek the advice of with a Data Protection supervisory authority if the evaluation exhibits an inherent danger.

What are the Possible Consequences of Non-Compliance?

The GDPR topics knowledge controllers and processors that fail to adjust to its necessities to extreme penalties. These penalties, opposite to what most individuals consider, aren’t simply restricted to financial penalties. Instead, they will probably injury a enterprise’s fame and backside-line. There are three elements that collectively make the GDPR probably the most stringent regulation within the European knowledge safety regime.

Reputational Risk — The reputational dangers of any knowledge breach is all the time extreme. However, implementation of the GDPR with obligation to notify authorities in case of knowledge breaches is probably going to end in elevated enforcement exercise. This will consequently convey knowledge safety breaches to mild, compromising an organization’s market place and popularity.
Geographic Risk — All organisations providing items or providers to EU markets or monitoring the behaviour of EU residents are topic to the GDPR. This consists of all knowledge analytics corporations as nicely.
Huge Fines — Failure to adjust to the brand new laws will lead to vital fines of up to 20 million EUR or four % of the corporate’s international turnover, whichever is greater.
To keep away from the large fines and extreme penalties, companies want to have full and mature knowledge governance in place. From revising the prevailing contracts in place to getting a purchase in from the important thing individuals in organisations, companies shall be required to evaluate their whole knowledge course of administration strategy so as to develop into compliant and mitigate reputational and monetary dangers.

5 Questions to Address and Mitigate the Risk of Non-Compliance

1. How can I minimise dangers and shield my enterprise’s fame?

Taking the next measures may also help you guarantee your compliance to the brand new knowledge safety laws.

Define Personal Client Data — Document what kinds of private knowledge your organization processes, the place it got here from, and who you share it with to enhance documentation. For instance, when you’ve got inaccurate private knowledge and you might have shared with it one other organisation, you gained’t find a way to determine the inaccuracy and report it to what you are promoting associate until you already know what private knowledge you maintain. Therefore, start with a radical evaluation of your present database.

Manage Data Streams and Processes — Develop a roadmap to decide your sources for knowledge enter, knowledge processing instruments, methods, and methodologies that you simply use, and how the info you maintain is shared with different companies. Once you have got listed all of the inputs and outputs, consider their compliance to the brand new laws, and take satisfactory measures to guarantee good knowledge governance.

Designate a Data Protection Officer — Designate a Data Protection Officer who has the information, help, and authority to assess and mitigate non-compliance dangers.

Ensure Swift Response to Withdrawal Requests — Respond to the purchasers’ requests of consent withdrawal in an environment friendly method and replace the system to flag that the consumer has withdrawn consent to forestall additional direct advertising.

2. How can my enterprise shield private knowledge?

The new knowledge safety laws apply to knowledge that permit direct or oblique identification of a person by anybody. As a outcome, cookie IDs, on-line identifiers, system identifiers, and IP addresses are categorised as private knowledge underneath the GDPR. To make sure the safety and confidentially of the brand new outlined classes of private knowledge, companies can use the next measures:

Adopt a Protection by Design Approach — There are sure ‘protection by design’ methods that companies can use to shield the private knowledge of their clients. These embrace:

Pseudonymisation — Pseudonymisation (similar to encryption, tokenisation, hashing) is a way that includes categorisation of the private knowledge of consumers into two varieties in such a fashion that one sort can not be attributed to a person until accompanied by the second sort of data which is stored individually and is topic to numerous knowledge safety measures.
Data Minimisation — As the identify implies, knowledge minimisation is about making certain that solely the info that’s crucial for a selected function is processed, used, or saved.

three. How can my firm implement technical infrastructure that may guarantee optimum governance of shopper knowledge?

GDPR not solely requires companies to implement a nicely-constructed and foolproof infrastructure to acquire, retailer, and course of knowledge, but in addition directs them to constantly assessment and replace the infrastructure. Here are a couple of methods companies can guarantee their compliance to these new legislations.

Align Data & Analytics Strategy with Policies — Businesses ought to concentrate on creating a knowledge and analytics infrastructure that’s CONTROLLED, PORTABLE, and COMPLIANT. To guarantee this, knowledge assortment must be objective pushed, i.e. solely knowledge that’s required to fulfill a selected requirement or objective ought to be collected and processed. Data assortment must be compliant. Customers ought to be supplied with a proper to object to knowledge assortment and processing for direct advertising processed. Data collected with the consent of shoppers ought to be stored in self-managed storage and processed in accordance to all relevant knowledge safety laws.


Manage Data Lineage — Certain knowledge governance options organised by main tech corporations may also help companies streamline their knowledge dealing with processes and train larger management and get improved visibility all through knowledge lifecycle. They assist companies undertake a standardised strategy to discovering their IT belongings and outline a standard enterprise language to guarantee optimum coverage and metadata administration, create a searchable catalogue of data belongings, and develop some extent of entry and management for knowledge stewardship duties.

four. How can my enterprise uphold these new laws and outline shopper knowledge assortment and storage?

To improve the compliance of their shopper knowledge assortment and storage processes, companies ought to search assurance from a knowledge safety officer who can inform and recommendation the enterprise about its obligations pursuant to the regulation, monitor the implementation and software of sufficient knowledge safety insurance policies, and guarantee optimum coaching of employees concerned in knowledge assortment and processing operations. In addition to this, designating a knowledge safety officer may also assist companies monitor their incoming knowledge streams and how they need to be handled.

5. How can my enterprise deal with several types of knowledge streams?

To guarantee their compliance to the GDPR and keep away from the extreme penalties of non-compliance, companies will not be solely required to guarantee optimum management and privateness of static batch knowledge, but in addition develop means to acquire, categorise, and course of knowledge offered by excessive-velocity knowledge streams. Data stream administration software program is a viable answer to this problem. A knowledge stream supervisor permits companies to:

Collect and distribute knowledge in a personal and compliant approach
Reduce prices and complexity in knowledge life cycle administration
Have actual-time entry to all structured and unstructured knowledge by way of the cloud or on premise
Centralise all knowledge sources for improved visibility and management
Develop a managed setting for knowledge-pushed operations
With a knowledge stream supervisor, Data Protection Officers can outline privateness ranges, handle consumer rights, get an perception into how their information is being collected or used, and extra.

Manage Data Streams by Data Protection Officers Source:

Many of the GDPR’s rules are a lot the identical as the present knowledge safety laws. Therefore, if your enterprise is working in compliance to the present regulation, you should use your present strategy to knowledge safety as a place to begin to construct a brand new, extra strong and safe GDPR-compliant knowledge safety infrastructure.

To study extra about GDPR compliance, *subscribe to watch the recording of the tutorial webinar* (, hosted by BrightTalk and introduced by Ronald van Loon.


Janus de Visser

Janus is Data Privacy Officer and Data Governance Consultant at Adversitement. Feel free to join with Janus on *LinkedIn* ( to study extra about GDPR, Data Govenance, Risk & Reputation.

Ronald van Loon

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