Survey suggests two thirds of businesses ‘unprepared for GDPR’
A survey carried out by professional services firm EY has suggested that two thirds of businesses are ‘unprepared’ for the upcoming introduction of the General Data Protection Regulation (GDPR).
The GDPR is set to come into effect on 25 May 2018, and will strengthen the obligations on all businesses in regard to the safeguarding of individuals’ personal information. Firms have been urged to review their data privacy and security practices ahead of the introduction of the Regulation, to ensure that they are compliant.
Businesses who fail to take action in respect of the new Regulation will face severe financial penalties, with fines costing up to €20 million, or up to 4% of total annual worldwide revenue, whichever is the greater.
EY found that 78% of firms consider data protection and privacy to be a growing concern: however, only 33% of businesses stated that they have a plan in place for the implementation of the new GDPR.
Meanwhile, a report published by software technology company Senzing suggested that businesses are ‘sleepwalking towards a GDPR abyss’. Senzing believes that 24% of businesses should be deemed ‘at risk’ of receiving significant fines for failing to comply with the new Regulation, and a further 36% are ‘challenged’ when it comes to complying with the obligations.
Worryingly, Senzing’s report also found that 30% of firms believe GDPR fines and penalties ‘will have no impact at all’ on their business, and an additional 15% ‘don’t know’ if fines will have an impact.
Commenting on the findings, Jeff Jonas, CEO of Senzing, said: ‘The fines that can be levied for non-compliance will be potentially terminal to some organisations, and even the largest companies – and certainly their shareholders – will feel a significant impact.
‘A huge number of companies simply don’t understand the dangers of non-compliance, with smaller firms apparently particularly unaware.’
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