With nearly every facet of a person’s life existing online, particularly in the business world, data privacy is more important than ever. Arguably, the European Union (EU) is arguably the world leader in data privacy and protection, having adopted the General Data Protection Regulation (GDPR) less than ten years ago. The GDPR is a set of data protection laws were designed to keep sensitive online data safer for EU residents and maintain harsh penalties for violations or data breaches. Let’s explore the fundamentals of the GDPR, the ways it can impact your business, and how you can adopt better data security practices with your employees.
What is the GDPR?
The General Data Protection Regulation (GDPR) extends privacy and protection to any individual in the EU who can be identified by their online information (also known as data subjects) by imposing cybersecurity obligations on any international organizations that target or collect their data. The GDPR was adopted by the Council of the European Union and European Parliament in 2016 and was made applicable with enforceable penalties in 2018. According to the Framework Program of the European Union, which funds an informational website about the GDPR, it is “the toughest privacy and security law in the world.”
Basic Tenets of the GDPR
There are seven data protection and accountability principles that make up the GDPR. First, any processing of sensitive data must be lawful, fair, and transparent to the related data subject. Data may only be processed for legitimate purposes, which should be explicitly specified to each data subject upon collection. “Data minimization” is another basic tenet of GDPR, which refers to collecting and processing the minimum amount of data that is necessary for each specified purpose.
Sensitive or personally identifiable information should also be accurate and kept up to date, and it may only be stored as long as it is necessary to perform the explicitly stated purpose. Security, integrity, and confidentiality are also essential aspects of data protection and processing, with encryption being the most common method. Finally, each organization will be held accountable for being able to demonstrate their compliance with GDPR as it relates to each tenet above.
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What are the Benefits of Complying with Data Privacy Laws?
The benefits of following data privacy regulations like the GDPR are primarily to avoid violation penalties and hefty fines. Approximately 15 million data records were exposed in data breaches worldwide during 2022 Q3 alone, resulting in millions of dollars in fines for the companies at fault. However, there are additional benefits to businesses that follow the GDPR, such as the building of customer trust and the protection of human rights. As most would agree, consumers have the right to understand how their personal and sensitive data is being collected and used, both in person and online.
Children are an especially vulnerable population when it comes to comprehending how their private information is being used online, and so maintaining the requirements of the GDPR can help prevent predatory or even illegal behavior. Keeping up with mandatory training and updates to the software will also keep a business’ own confidential data safer from leaks or breaches, protecting both their employees and customers. GDPR and data privacy training from EasyLlama can provide employees with a greater understanding the importance of complying with the GDPR, so that your company can both stay in compliance and keep vulnerable populations and client data safer.
Penalties Involved with GDPR Violations
The penalties for not following the data privacy regulations of the General Data Protection Regulation include a number of steep fines. There are two tiers of GDPR fines, with the less severe infringements resulting in fines up to the higher of €10 million ($10,647,550 USD) or 2% of their previous financial year’s worldwide annual revenue. Companies that commit more serious infractions could expect fines ranging up to €20 million ($21,295,100 USD) or 4% of their annual revenue.
Keep in mind that the ultimate purpose of the GDPR is to protect data, not punish corporations arbitrarily. Issued fines are determined by a number of factors, including the business’ history with compliance, their cooperation in an investigation, the gravity and nature of the incident, and more.
Best Practices for Staying in Compliance with the GDPR
One of the best ways to ensure that your company is staying in compliance with the GDPR is by providing regular training. Data protection training is actually required by Article 47 of the GDPR, which states that corporations must provide, “the appropriate data protection training to personnel having permanent or regular access to personal data,” and that designated data protection officers are responsible for monitoring said training.
With EasyLlama’s mobile-first training, you can instill an understanding of the importance of data privacy in your workforce by presenting the latest trending information in personal data protection with Hollywood-produced videos and interactive knowledge checks. In addition to EasyLlama’s GDPR online courses, our Data Privacy & Cybersecurity suite includes training on HIPAA, CPRA, and Cybersecurity in the workplace.
Access your FREE course preview today to provide your employees with a new understanding of GDPR compliance. Our best-in-class, interactive courses are sure to keep your employees engaged and interested while learning about the best practices on data protection for maintaining GDPR compliance in the workplace.
