Everything You Need to Know About GDPR
Data protection is a priority for every business. Even with first-class hosting in place, it’s essential for organisations to acknowledge the risk of a data breach and take steps to protect the data they store.
For any business located or doing business in the European Union, adhering to GDPR regulations and security requirements is a must. Here’s what you need to know.
What is GDPR?
The General Data Protection Regulation, or GDPR, was approved by the EU Parliament in April of 2016. The regulations went into effect on May 25, 2018.
The goal of the GDPR is to protect consumers’ personal data and penalise enterprises that fail to adhere to regulations. It replaces the Data Protection Directive 95/46/EC. It:
- Standardizes data privacy laws across the EU
- Protects and empowers the data privacy of all EU citizens
- Sets regulations to ensure that organisations doing business in the EU respect data privacy
GDPR has implications for CIOs, who are now required to put strict consent management practices in place to ensure that data is collected only with a consumer’s consent. It also affects CMOs, who must oversee proper data rights management systems to protect the data collected.
Any organisation affected by GDPR must use superior hardware and superior software to safeguard stored data.
Who is Affected by GDPR?
GDPR protects personal data belonging to any citizen of the EU. The regulations apply to:
- Any company operating within the EU
- Any company outside of the EU that offers goods or services to customers or businesses within the EU
In other words, nearly every major corporation in the world must be aware of GDPR and ensure compliance with its regulations – or risk paying a substantial fine. The fines may be as much as 4% of global turnover or €20 million, whichever is higher.
Which Data is Protected by GDPR?
One thing that organisations must know is the types of data that are protected by GDPR regulations. The regulation specifies “personal” data – but what does that mean in this context? Under previous regulations, personal data was limited to names, addresses, and photographs. GDPR protects those, but it adds:
- IP addresses
- Genetic data
- Biometric data
- Financial data, including Social Security numbers and credit card information
GDPR makes some key changes from the previous legislation. In addition to protecting data, it also does the following things:
- Requires organisations doing business in the EU to use clear and understandable language in their consent management policies
- Requires businesses to disclose data breaches immediately, so consumers may take steps to protect themselves
- Gives consumers a “Right to be Forgotten” option
- Gives consumers the right to get a copy of their data upon request
- Imposes “Privacy by Design” regulations, meaning that organisations must build data protection into systems from the beginning of the design process
- Creates standards for appointing Data Protection Officers
The enactment of GDPR is likely to compel organisations doing business in the EU to prioritise first-class hosting on a superior network as part of their compliance.
How Does GDPR Affect Businesses?
We’ve already mentioned the fines that the EU may impose if enterprises fail to comply with GDPR, but are there any other ways in which the new regulations affect businesses?
The short answer is yes. As of January 2019, EU member nations had imposed fines on 91 companies. The largest was a €50 million fine on Google, which regulators said used personal data for advertising without proper permission. That fine was imposed by CNIL, the French data protection authority.
There have been more than 60,000 breaches reported, and it might be tempting for some organisations to assume that they won’t face penalties because regulators are overwhelmed. However, that’s a dangerous assumption to make.
In addition to potential fines, here are some things to keep in mind:
- GDPR may impact a company’s ability to use blockchain technology
- In addition to IT, a company’s officers and operations staff must be involved in compliance
- Hackers’ personal data (including names and IP addresses) is protected as well
- Some sites outside the EU may restrict access for EU visitors
Every enterprise doing business with EU citizens will need to be aware of GDPR changes and how they impact business.
To learn more about how Localnode’s first-class hosting can help you with GDPR, please click here now.