A new study conducted by the Ponemon Institute has shown that General Data Protection Regulation preparations have only been made by a small minority of companies, with almost half of surveyed organizations unsure where to even start.
The General Data Protection Regulation was approved by the EU Parliament on April 14, 2016. Companies have been given until May 25, 2018 to comply with GDPR. When the new regulation comes into force, any company discovered not to be in compliance can face a heavy fine. The maximum fine for non-compliance will be €20 million or 4% of global annual turnover, whichever is the highest.
Many companies started their General Data Protection Regulation preparations as soon as the new legislation was approved. According to the Ponemon Institute survey, only 9% of companies have made the necessary changes comply with GDPR. 59% of surveyed organizations haven’t even started their General Data Protection Regulation preparations and don’t even know how to comply.
Interestingly, the threat of fines and the difficulty complying with GDPR has put many companies off doing business in the EU. 34% of surveyed companies have said their General Data Protection Regulation preparations have involved shutting down their European operations. However, that does not mean they will not need to comply. Compliance with GDPR is mandatory for any company doing business in the European Union, even if they do not have a physical base in one of the European member states.
Even the threat of fines has not convinced many companies to start preparing. Only 38% of companies said their senior leadership viewed compliance as a priority.
The changes for many companies to ensure compliance will be considerable. 89% of respondents said GDPR will have a significant impact on their data breach protection practices. However, there is considerable doubt about how effective GDPR will be. Only 41% of companies believe the new regulation will improve privacy protection practices while 70% said they don’t believe the new regulation will benefit victims of a data breach.
If you have yet to start preparing and updating your policies and procedures you don’t have long. The compliance date may be months away, but for many companies, preparations will take some time. If you are keen to avoid a fine for non-compliance, now is the time to start your GDPR compliance preparations.
If you are unaware of what GDPR means for your business or whether you need to comply with the regulation, you can find out more on this link.