20% of businesses think GDPR non-compliance could shut them down

86% of businesses worldwide report the potential negative consequences of non-compliance with the upcoming EU General Data Protection Regulation (GDRP) as a major concern, according to Veritas Technologies.  

The Veritas 2017 GDPR Report surveyed 900 business decision makers and found that 20% think that non-compliance could end up putting them out of business.

The risks of non-compliance with the new set of regulations, due for introduction in 25 May 2018, are high. Businesses face potential fines up to the value of €20 million, or 4% of their annual turnover – whichever is greater.

GDPR will not only affect companies in the EU, but any company that offers goods or services to EU residents or collects data on them.

47% of the global oragnisations surveyed had serious doubts that they will be able to meet the compliance deadline.

Other potential consequences cited by respondents were high penalties leading to layoffs (21%), negative publicity leading to losing customers (19%) or brand value reduction (12%).

“There is just over a year to go before GDPR comes into force, yet the ‘out of sight, out of mind’ mentality still exists in organisations around the world. It doesn’t matter if you’re based in the EU or not, if your organisation does business in the region, the regulation applies to you,” said Mike Palmer, Executive Vice President and Chief Product Officer, Veritas.

Preparation issues

A major issue highlighted by the research appears to a lack of understanding of not only the data companies currently have, but where it is located and the relevance it has to operations. This is an important first stage of GDPR compliance.

32% fear that their current technological capabilities are unable to manage their data effectively.

39% claim that they cannot identify and locate data in an accurate way. A key part of GDPR is the requirement for businesses to be able to provide individuals with a copy of their data before deleting it with 30 days.

40% said that they did not currently have a mechanism in place for deciding which data should be saved or deleted. Only 31% believed that their organization is GDPR ready.

“A sensible next step would be to seek an advisory service that can check the level of readiness and build a strategy that ensures compliance,” continued Palmer.

“A failure to react now puts jobs, brand reputation and the livelihood of businesses in jeopardy.”

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