The Primary Advantages of General Data Protection Regulation 2018
The new General Data Protection Regulation came into effect on May 25th, 2018, and transformed the way businesses used to process and handle vital data. The EU GDPR guidelines allow individuals to gain more control over their private data and its usage. However, businesses are considering GDPR a major setback as they are struggling to ensure compliance. Additionally, the huge fine that comes with the failure of compliance has also become a matter of concern.
[Pull Stat]- “As per a recently published report, around 60% of European companies are still struggling to get in compliance with the GDPR.”
Apart from reputation damage and massive fines, the introduction of GDPR 2018 is certainly beneficial for the companies. Its compliance allows companies to optimize their cybersecurity and become more efficient within the global marketplace. Below are key benefits that come along with EU GDPR compliance: -
- Efficient Data Management
Data is undoubtedly one of the important assets of any company; hence it is paramount that the management is able to assure that the information they hold is used within legal boundaries.
With GDPR in effect, companies will have to execute an extensive audit to evaluate their existing data management process to ensure if changes are needed to be made. They will need to look at the type of data they are holding, where it is used, what was the source, retention length, its actual use, right to access, and the way it is shared. By such thorough auditing, businesses will be able to identify and eliminate data that is no longer valuable to the business, hence reduce the risks involved with the data breach.
2. Stronger Cyber Security Management
The increasing rate of cyber security threat has been alarming companies all around the world. As the scale of these attacks is growing exponentially, GDPR offers an opportunity for the companies to re-evaluate their data security strategy and implement the necessary changes that will further prevent the personal data of individuals.
[Pull Stat]- “As per the recent report of Microsoft, the speculated cybercrime cost to the global market is USD 500 Billion. Furthermore, the data breach will cost approximately USD 3.8 Million.”
The EU GDPR ensure that only a few designated people within an enterprise have the access to data, hence reduce the chances of data falling into the wrong hands. Moreover, it necessitates that in case of data breaches, supervisory authority must be informed within 72 hours of identification.
These requirements will allow companies to reduce the risk of being attacks and lay a strong bedrock for an optimized data security and compliance.
3. Optimized Return on Investments
With GDPR in effect there are various improvements and cost savings in the IT management department. The thorough evaluation of existing strategies allows companies to focus more on securing the personal data rather than hastily reacting to a security attack and the cost incurred after that.
Additionally, GDPR allows business to enhance their ROI on marketing. The new legislation requires companies must have a data subject’s complete consent before processing the data. Once the database is streamlined, it will be easier for them to determine and communicate with customers that are genuinely interested in the business. This will further make marketing campaigns focused, defined, and budgeted.
4. Positive Changes in the Organization
The introduction of the General Data Protection Regulation has provided many opportunities to the companies to become more transparent, accountable, and responsible for using personal data. Companies have become more aware of data security than ever and consumers are also well aware how their personal data is being processed.
Today organizations need to show their customers that they are taking the necessary steps to protect their personal data and ensure effective information governance. If companies manage to successfully demonstrate that, then this can generate a high level of trust, transparency and provide a competitive advantage.
The GDPR implementation will evidently revolutionize how companies handle their data processing. Irrespective of various challenges that can come with the transition, it can bring a lot of opportunities for companies to grow and strengthen their stand within the market.
