4 Essential Areas of GDPR Every Business Owner Needs to Know
Managing a business comes with many positive and, at times, negative connotations. There are ups, downs and everything in between, but stability is achievable. An essential factor in the business world is keeping up with the varying rules and regulations. Seeing as fines are a harsh reality in the business world, doing all that you can to avoid them is crucial.
In light of this, one of the regulations that could have a direct impact on your business is GDPR. The crucial points below highlight some essential areas of GDPR that every business owner needs to be aware of.
The major shift with GDPR is simple. Consumers now have to consent to you using and keeping their data. Previously, this issue did not have to be approached by businesses as consent was not essential. This has changed, however.
All businesses are now required to explain to a consumer what their data is going to be used for. Businesses will also need to give them the option of opting out if consumers want to. It is also imperative that you are aware that GDPR applies to any organization that’s holding and processing the personal data of EU residents, irrespective of where they are.
Another critical area that to be familiar with relates to your obligation to keep customer data secure. It means that you have to put measures in place to mitigate the risk of data breaches. GDPR training is one effective way to do this. Training your staff should ensure they have accurate and updated knowledge regarding regulations. You can then focus on implementation and monitoring. You should also know that you now have to notify the necessary parties if a breach takes places within 72 hours of you knowing about the incident.
Improved Subject Rights
As a business owner, you should know that users have been given more power under GDPR. Consumers have a right to know what their data is being used for. They can now also choose to approve or disapprove. More specifically, they have the right to have their data erased after it’s been used for its original purpose. In addition to this, they should be able to access and modify their personal data. It should be given to them upon request and is something every business needs to be aware of.
As a business owner, it is imperative that you’re aware of the repercussions of not complying with GDPR. Not doing so could result in substantial fines, that could be detrimental to your business. Fine costs could be up to €10 million, or 2% of the company’s annual turnover, while the higher tier could be up to €20 million and 45 % of the annual turnover. It stands to reason that you should endeavor to make the necessary changes to ensure your business is compliant.
Managing a business inevitably involves responsibility. Continuously updating your own knowledge is essential, as is being familiar with how to operate in a way that’s ethical. With constantly changing regulations and laws put in place, it is imperative that you’re as compliant as possible if you want to avoid setbacks as a business.