Is Your Business Ready for GDPR?
The rules on privacy and data are changing with the arrival of the General Data Protection Regulation in May 2018. The new legislation will change how businesses collect and use customers’ data, with financial penalties of up to €20 million or 4% of annual turnover for those that don’t comply.
To avoid a setback for your business, it’s essential to check whether your policies fall in line with these new rules. Read on for more on GDPR and how to make sure your business is compliant.
What is GDPR?
GDPR is a piece of legislation approved by the EU in 2016, which will be implemented on 25th May 2018. Despite ongoing negotiations to leave the EU, the UK government has confirmed that it will apply to UK companies. More specifically, it will affect any company that comes into contact with personal data.
The aim is to enforce stronger data security and privacy rules. Tighter regulations across the EU will create a new system for data protection, which is stricter on how data is collected, stored and used. It also removes any question of liability, with businesses responsible for data collected, stored and used on their behalf, whether that’s by their staff or external processors.
How will it affect UK businesses?
Replacing the existing Data Protection Act, the new and improved regulations are proof of a stricter cyber landscape. Moving forward, officials want businesses to be completely open about the who, what and why when it comes to data. It sets new standards for what is expected from businesses.
A lot of the content is similar to the DPA, such as only collecting information for a specific purpose. However, GDPR requires evidence of compliance across the board. Everything needs to be documented from staff training to customer consent. And there needs to be a clear system in place which protects the customer’s data along every step of the process.
More clarity, transparency and liability isn’t necessarily bad news for businesses though. Improving your data policies will ultimately improve your own business practices. Becoming GDPR compliant means you can revolutionise how you handle sensitive information. The stricter security policies could also enhance your organisation’s integrity, helping to improve customers’ trust.
So, is your business GDPR compliant?
With GDPR imminent, it’s essential that businesses act as soon as possible to check that they’re compliant. Familiarise yourself with your current data processes, from collection to storage and use.
After thorough reviews, you may find you need to revamp and rewrite your privacy policies as well as the software you use. Remember – you’re liable for any unauthorised access to customer data.
It’s also key that all employees understand what new regulations mean. If in doubt, it’s definitely worth seeking professional help to educate and guide your business and employees.
Get your business ready
With big changes ahead, it’s essential to stay on top of how your business manages data. If you’re looking to make sure your accounting systems are GDPR compliant, UWM Accountants can help. We are a team of expert cloud accountants, who have kept our clients up to date with the latest legislation for over 30 years.
To arrange a chat with our team of accounting experts, get in touch today.