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Do you know what GDPR is? Understand how it affects companies!

Do you know what GDPR is? Understand how it affects companies!

Since a series of scandals involving data storage has surfaced, the world has faced a serious problem related to the security of information accumulated on people.

The search for solutions to this threat has involved a number of measures to prevent what is known about people from being used in the wrong way. GDPR is one of those.

So, in this text, you’ll understand what GDPR is and how it affects the operation of companies. Check it out!

What is GDPR?

The General Data Protection Regulation (GDPR) is a European legislation developed in 2016 that came into force in May 2018.

Although it belongs to Europe, this regulation is global in scope, since many companies from other countries have European customers and, in order to serve them, they had to adapt to the measures proposed in the legislation.

The main idea of GDPR is to protect data from an identifiable natural person, which means that name, ID number, location and other factors must be preserved.

Before this initiative, there was already a simpler regulation known as the Data Protection Act (DPA), which was created in 1998 and aimed at defining how information stored on computers or documents could be used.

How can GDPR affect companies?

Here, we’ll present how the GDPR can change some activities of your enterprise. Learn about it.

Identify and document application and data storage systems

With GDPR, companies will now have to develop ways to identify and document the collections of customer information and where those data are stored, as well as for how long.

Distinguish between data processing interfaces

Data history will be a primary factor and should be closely monitored if the company intends to follow the GDPR. In addition to this monitoring, it will be necessary to determine what the purpose of collecting certain customer information is.

Here, it’s important to keep in mind that these data may be requested by the customer and that he should have easy access to them.

Report all information

In this case, it’s important to have a location where all these data will be stored for an eventual consultation. At some point the company will have to report them, and it’s important that it can do this in a way that everyone can easily attain it and anyone is able to understand it. Creating reports will probably be the best choice.

Why is good data management and governance important for GDPR?

As we showed at the beginning of the text, GDPR is a regulation of global impact, so a company that intends to expand its horizons must pay attention to this factor.

In addition, there is the financial issue: fines may be levied for companies that do not comply with the measure. According to the GDPR, 4% of the volume of annual businesses or 20 million Euros, whichever one is more valuable, shall be demanded.

Therefore, the company that intends to follow it must inevitably adopt measures for the correct application. For example, invest in data management technology, as well as tools, for reading and interpreting this information when needed. In addition, make your customers’ access to this data easier by investing in transparency and security.

It is interesting to point out that complying with such legislation can be an important characteristic for the company, as it indicates a concern for consumer welfare and, consequently, it’s a competitive advantage over other companies.

We hope this text has clarified what GDPR is and how it can affect your company. Did you like the article? So be sure to share it with your friends!