GDPR flouters will be in the majority, says Gartner

More than 50 per cent of firms GDPR affects won't be in full compliance by end of 2018, according to analyst

More than half of companies affected by the European General Data Protection Regulation (GDPR) won't have their houses in order by the end of 2018, according to Gartner.

When GDPR goes live on 25 May 2018, firms will face fines of up to €20m - or four per cent of turnover - for non-compliance.

Gartner today nailed its colours to the mast by asserting that more than 50 per cent of firms affected by the incoming rules - which will impact many firms based outside the EU - will not be in full compliance with its requirements by the end of 2018.

"The GDPR will affect not only EU-based organisations, but many data controllers and processors outside the EU as well," said Gartner research director Bart Willemsen. "Threats of hefty fines, as well as the increasingly empowered position of individual data subjects tilt the business case for compliance and should cause decision makers to re-evaluate measures to safely process personal data."

The market watcher consequently outlined five things businesses should do as a priority to get up to speed, namely:

1. Determine your role under the GDPR Any organisation that decides on why and how personal data is processed is essentially a "data controller." The GDPR applies therefore to not only businesses in the European Union, but also to all organisations outside the EU processing personal data for the offering of goods and services to the EU, or monitoring the behaviour of data subjects within the EU. These organisations should appoint a representative to act as a contact point for the data protection authority (DPA) and data subjects.
2. Appoint a data protection officer Many organisations are required to appoint a data protection officer (DPO). This is especially important when the organisation is a public body, is processing operations requiring regular and systematic monitoring, or has large-scale processing activities. "Large scale" does not necessarily mean hundreds of thousands of data subjects.
3. Demonstrate accountability in all processing activities Very few organisations have identified every single process where personal data is involved. Going forward, purpose limitation, data quality and data relevance should be decided on when starting a new processing activity as this will help to maintain compliance in future personal data processing activities. Organisations must demonstrate an accountable ground posture and transparency in all decisions regarding personal data processing activities. Outside parties must also comply with relevant requirements that can impact supply, change management and procurement processes. It is important to note that accountability under the GDPR requires proper data subject consent acquisition and registration. Prechecked boxes and implied consent will be largely in the past. A clear and express action is needed that will require organisations to implement streamlined techniques to obtain and document consent and consent withdrawal.
4. Check cross-border data flows Data transfers to any of the 28 EU member states are still allowed, as well as to Norway, Liechtenstein and Iceland. Transfers to any of the other 11 countries the European Commission (EC) deemed to have an "adequate" level of protection are also still possible. Outside of these areas, appropriate safeguards such as Binding Corporate Rules (BCRs) and standard contractual clauses (i.e., EU "Model Contracts") should be used. EU-based data controllers should pay specific attention to new mechanisms under the GDPR when selecting or evaluating data processors outside the EU and ensure appropriate controls are in place. Outside of the EU, organisations processing personal data on EU residents should select the appropriate mechanism to ensure compliance with the GDPR.
5. Prepare for data subjects exercising their rights Data subjects have extended rights under the GDPR. These include the right to be forgotten, to data portability and to be informed (eg, in case of a data breach). If a business is not yet prepared to adequately handle data breach incidents and subjects exercising their rights, now is the time to start implementing additional controls.