Why GDPR is good for business
The General Data Protection Regulation puts a huge responsibility on businesses to ensure that they have sufficient Data Protection policies in place. Although it may be a considerable time and financial burden at the start, in the long run it may save your business money.
Data Breaches can be disastrous for business. Most recently, companies such as Facebook, Uber, MyFitnessPal and Sears have been the victims of malicious data breaches. Iit is estimated that Facebook has lost upwards of 70 billion US dollars in 10 days as a result of the breach announced in March of this year, with continuing financial losses and controversy.
Here are Five reasons why the GDPR is good for business.
1) Increased Customer Trust
Businesses must be clear about the reasons that they use the consumer data. This means that if businesses can demonstrate their compliance with the GDPR, customers will have more trust and confidence in the businesses. If your business has sufficient data protection policies in place, then the risk of data breaches are minimised significantly and customer confidence will increase. Data breaches in the digital era are a growing concern for customers and it is critical for businesses to comply with the GDPR to ensure that customer concerns are addressed.
2) Transparency, Accountability and a Risk Based Approach
The GDPR requires companies to take a risk based approach in all of their activities. The aim is for businesses to consider the potential impact of all of their business activities before embarking on any changes or new projects.
In addition, businesses must be able to accurately demonstrate what data they have on file and their reasons for holding the data. The Transparency and Accountability requirement should ensure that businesses think about what data they hold and why. Companies should not request any excess personal data and carry out regular data purges to ensure that no excess data is on file.
This risk based method should ensure that most risks can be mitigated before a breach occurs, saving your business reputation and money.
3) Legal certainty
There has been a great deal of uncertainty with regard to data protection regulation in recent years. Particularly with recent rapid developments in technology, most countries have not updated their data protection legislation accordingly. This had caused a great deal of uncertainty for businesses, the data protection authorities and the courts who are faced with disputes and no clear legal guidance.
The GDPR provides clear guidance and grants Data Protection Authorities administrative power to deal with data breaches, which will ensure swift redress for disputes and reduced legal costs.
4) EU wide ride regulation
Many businesses operate across the European Union and previously, there was not a great deal of uniformity with regards to data protection legislation. The GDPR brings all countries in the EU under the same regulations which is of particular benefit to businesses which operate across multiple Member States. It also introduces the “One Stop Shop” for businesses which will mean that you can report to and work with primarily with the data protection supervisory authority based in the Member State of your main establishment.
5) Accurate Consumer Targeting and Marketing Efficiency
The GDPR tightens up regulations with regard to how customer data is used in particular for marketing purposes. Although it may seem counterproductive, it will actually mean that marketing is better targeted at customers that are interested in your product. Unwanted marketing emails are seen as a nuisance by consumers and may discourage them from purchasing your product. The GDPR requires that you obtain consent for any marketing emails that you send. If a customer gives their consent, then they are interested in your product and there is a greater chance that they will make future purchases.
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