Complying with the EU’s General Data Protection Regulation isn’t optional for companies that do business in Europe. But even though the GDPR has been in force for over seven years, many organizations still struggle to comply with its strict privacy laws. The purpose of this guide is to help enterprises overcome GDPR compliance challenges and avoid mistakes.
The Most Common GDPR Compliance Challenges
By learning more about common obstacles to GDPR compliance, your enterprise can develop a framework that simplifies the process.
1. Data Location and Storage
To comply with GDPR, your company needs to maintain accurate and organized records of personal data gathered. GDPR gives data subjects the right to request copies of all information you hold on them. Such precise file storage usually requires carefully designed automated workflows.
2. Ambiguous Language and Legal Uncertainty
Many articles of the GDPR use vague language that is open to interpretation, such as:
- “Data protection by design and default”
- “Appropriate technical and organisational measures”
- “Disproportionate effect”
- “In an effective manner”
- “A level of security appropriate to the risk”
- “Undue delay”
Without standardized definitions, controls, or compliance objectives, determining what security measures are “appropriate” is difficult. Predicting the opinion of regulatory bodies is especially difficult after a data breach.
3. Regulatory Complexity
In total, the text of the GDPR covers 11 chapters and 99 articles, ranging from data subject rights to third-party processing requirements. Not only do you need to meet these requirements consistently, but also cost-effectively. It’s not easy for employees to consistently remember the correct procedures, so ongoing training is essential.
GDPR challenges have a profound impact on the way businesses approach data gathering, records storage, deletion, analytics, and consent for processing. Successful implementation involves risk management, data policies, specific processes, cybersecurity safeguards, incident response plans, and audits.
4. Evolving Requirements and Interpretations
Each data protection authority can interpret GDPR requirements differently. There are 28 supervisory authorities in the EU, one for each member state. Businesses need to be aware of local court rulings and stay up to date with any GDPR changes.
5. Financial Resources
It can take significant time, money, and effort to implement a GDPR framework. For example, you have to hire or appoint a Data Protection Officer to create and coordinate your compliance program.
It’s also necessary to perform an in-depth data protection impact assessment (a GDPR-based risk assessment). Enterprises often need to devote resources from their legal team to minimize risks.
6. Elevated Cybersecurity Controls
GDPR doesn’t provide a specific list of technical security requirements, but organizations must implement appropriate safeguards that take into account “the nature, scope, context and purposes of processing as well as the risk” to data subjects.
The more sensitive the data, the greater the cybersecurity and organizational controls expected. Data encryption and/or pseudonymization are strongly suggested.
Of course, this challenge to GDPR implementation isn’t a bad thing. Stronger cybersecurity helps enterprises prevent devastating ransomware attacks and data breaches everywhere.
GDPR Challenges for Organizations in the United States
GDPR applies to any company that processes the data of EU residents, including businesses in the United States. This situation presents unique challenges for GDPR compliance.
7. Data Transfer Restrictions
Even after you create a GDPR-compliant privacy policy and get the consent of data subjects for processing, there are strict restrictions on transmitting this data to locations outside of the EU or UK. In some cases, you have to name a representative in the EU to authorize cross-border data transfers.
Companies storing or processing information subject to GDPR in the US usually need to participate in the Data Privacy Framework program. GDPR compliance challenges to third-country processing can restrict your options for cloud storage and data backups.
8. Consent for Analytics
The GDPR definition of personal data includes “an identification number, location data, an online identifier,” and similar analytics frequently used for digital marketing. To comply with GDPR, you must obtain consent before gathering protected data, which usually requires changes to normal website functionality.
9. Lack of Available GDPR Expertise
Finding workers who understand GDPR compliance is more difficult for US businesses. Instead of being able to name an existing executive as Data Protection Officer, you may have to hire a separate professional.
10. Executive Buy-In
EU-based businesses have a clear financial incentive to comply with GDPR, but the cost-benefit ratio in the US is usually lower. This can make it hard to persuade executives to assign sufficient resources. Still, if your organization wants to operate or expand into the lucrative EU market, GDPR compliance is mandatory.
GDPR Implementation Challenges for Enterprises
Enterprise-level businesses face additional hurdles to GDPR compliance, especially when operating globally. Adhering to GDPR can present significant technical challenges that go against how software platforms traditionally work:
- Right to erasure requirements: Your data storage must be configured to allow for locating and deleting data on request.
- Record of Processing Activities: All processing activities must be listed in detail, including a list of data recipients.
- Third-party GDPR compliance: Any third parties that process data for you must meet GDPR, including SaaS providers and marketing companies.
- IoT devices: GDPR also covers biometrics in images and videos. Complying with GDPR for data gathered by security systems and other IoT devices can be complicated.
- Workforce challenges: Employees in the EU have some rights to their personal data as well, potentially impacting your HR department and cybersecurity practices.
If GDPR compliance is necessary for your organization, you must take it into account for nearly all cybersecurity, organizational, and risk decisions. Even something as routine as using Microsoft 365 products requires special considerations due to GDPR privacy rights.
Comprehensive Solutions for Your Organization’s GDPR Compliance Challenges
GDPR compliance requires deliberate actions and focused efforts. At the same time, organizations should aim to build compliance into operations organically, avoiding the need for employees to memorize complex procedures.
Organizations can mitigate risks, increase uptake, and improve efficiency by automating data workflows. Compyl’s analytics tools reveal compliance progress on a granular level and help you identify areas and personnel that need additional GDPR support. These comprehensive insights help you avoid GDPR violations and costly fines.
It’s possible to overcome GDPR compliance challenges efficiently and cost-effectively. The right GDPR compliance solution is the key. Request a demo today.
