In our data-driven world, handling and sharing personal data is an inevitable part of business operations. When personal data is involved, data protection laws and best practices loom over one’s head. However, while data protection compliance may seem daunting and onerous, it ensures that personal data is handled carefully so that customers are not endangered, and the security of data is ensured. Moreover, there are considerable benefits which underline the importance of establishing and maintaining good data protection practices across the organisation.
Let’s have look at the different benefits to data protection compliance.
Avoiding breaches of data protection laws and fines
First of all, not complying with data protection laws means that you are in breach with the UK General Data Protection Regulation (UK GDPR) and the Data Protection Act 2018 (DPA 2018). A breach with your obligations under the UK GDPR can have significant consequences in form of fines that can be as high as 4% of your annual global turnover or £17.5 million, whichever is higher.
Favourable considerations in ICO investigations
The Information Commissioner’s Office (ICO) is an independent authority which ensures that data protection laws are upheld. If warranted, the ICO can launch investigations and audits into your organisation to determine whether you are complying with your data protection obligations. These investigations can be based on complaints that the ICO receives or reports in the media.
If an investigation is launched, being compliant and able to demonstrate good data protection practices will be crucial. In fact, it is considered favourably by the ICO and is counted as a mitigating factor in their assessment, especially if those practices go beyond the minimum requirements set out by law.
Good standing and reputation
The ICO publishes its enforcement actions and reprimands online. The risk of being publicly named and shamed is intended to act as a deterrent so that organisations refrain from breaching data protection laws. The public will be able to see the organisations that have been in breach with data protection laws. This might even be picked up by the media. Inevitably, this would lead to significant negative publicity and reputational damages. Good data protection practices show the public that you are committed to data privacy and security and that you handle personal data with care. This is good for your reputation and your brand.
Building trust with customers
Probably the most crucial benefit to consider is the one of building trust with your customers. Good data protection practices and data protection compliance will help you in maintaining the trust that customers place in you and show them that you care about their information. This will enable you to maintain the loyalty of your customers and will help you in building on your already existing customer base.
Competitive edge in the market
Under the UK GDPR, Organisations that may want to work with you are obliged to check whether you are compliant with the UK GDPR and that you offer sufficient guarantees to protect the personal data they may want to share with you (Article 28 UK GDPR). Therefore, being data protection compliant will remove any obstacles in your way of working with other organisations within the UK and European Economic Area.
Essentially, this will ensure that you remain competitive in the market. You can stand out through your data protection compliance and great data protection practices, and you can attract customers who are more careful when choosing with whom they want to share their data.
Effectiveness
Data protection compliance contributes to the streamlining of data management processes. It requires you to set up procedures for handling personal data. For example, the UK GDPR requires you to keep a record of the personal data that you use. Those records capture important information on what personal data you are processing, where it is held, who the responsible parties are and on which lawful basis you are relying. By keeping records and setting up data management procedures you are ultimately improving the efficiency of your business and the quality and accuracy of your data.
Risk management
Data protection laws require you to keep the personal data you handle secure by implementing measures tailored to the risks involved. Being compliant will help you in mitigating security risks and reducing the chances of any data breaches from occurring. Furthermore, in the event of a data breach, you will have procedures in place which help you in effectively detecting and mitigating it. Having those procedures in place will enable you to contain the data breaches and thus reduce the potential damages that you and your customers might otherwise have faced.
Conclusion
There are numerous reasons why you should understand your obligations under the UK GDPR and know what ICO’s expectations are. It is crucial to maintain good data protection practices across your organisation both from a legal and business standpoint. Adverse publicity should be avoided at all costs so that trust in your organisation can be fostered. This trust will enable you to grow and build on your existing customer base and will ensure that you remain competitive in the market.
If you have any questions or want expert support in helping you comply with data protection law, check out our services or send us an enquiry at info@informationgovernanceservices.com.