The importance of cybersecurity in the modern business landscape

In today's digital age, the business landscape has become increasingly interconnected, with organizations relying heavily on technology for their day-to-day operations. As a result, cybersecurity has emerged as a critical aspect of modern business management. Cyber threats, data breaches, and attacks on IT infrastructure have become all too common, resulting in significant financial and reputational losses for affected organizations. Ensuring robust cybersecurity measures protects sensitive data and assets and helps maintain trust with customers, partners, and stakeholders.

The role of CFOs in ensuring cybersecurity compliance

As the Chief Financial Officer (CFO), you play a pivotal role in your organization's cybersecurity efforts. While the responsibility for implementing and maintaining cybersecurity measures often falls on IT departments, CFOs must actively understand the risks, navigate the complex compliance landscape, and allocate resources effectively. Your financial acumen and strategic insights can help align cybersecurity goals with overall business objectives, ensuring your organization remains resilient and adaptable in the face of evolving threats.

Overview of the guide's content and structure

This comprehensive guide aims to equip CFOs with the necessary knowledge and tools to navigate the cybersecurity compliance landscape. We will begin by examining the key regulations and standards your organization may need to adhere to, followed by a discussion on developing a cybersecurity compliance strategy. Next, we will delve into implementing controls and measures to protect your organization and the importance of monitoring and auditing compliance efforts. The financial aspects of cybersecurity compliance, such as budgeting and insurance, will also be addressed. Finally, we will explore managing third-party vendor relationships to ensure they align with your organization's cybersecurity standards.

Overview of major cybersecurity regulations and standards

General Data Protection Regulation (GDPR)

The GDPR is a comprehensive data protection regulation that applies to organizations operating within the European Union or dealing with the personal data of EU citizens. The regulation aims to ensure the privacy and security of personal data by imposing strict requirements on data processing, storage, and transfer. Non-compliance can result in significant fines of up to 4% of an organization's annual global revenue or €20 million, whichever is higher.

California Consumer Privacy Act (CCPA)

The CCPA is a data privacy law that applies to businesses operating in California or handling the personal information of California residents. The law provides consumers with specific rights regarding their personal data, including the right to access, delete, and opt out of the sale of their information. Similar to the GDPR, non-compliance can result in substantial penalties.

Health Insurance Portability and Accountability Act (HIPAA)

HIPAA is a United States federal law that regulates the handling and protection of protected health information (PHI) within the healthcare industry. Organizations that process, store, or transmit PHI, including healthcare providers, insurance companies, and their business associates, must adhere to HIPAA's privacy and security rules.

Payment Card Industry Data Security Standard (PCI DSS)

PCI DSS is a set of security standards designed to ensure the safe processing, storage, and transmission of payment card information. All organizations that accept, process, store, or transmit credit card information must comply with PCI DSS to protect cardholder data and reduce the risk of data breaches and fraud.

ISO/IEC 27001:2013

ISO/IEC 27001:2013 is an international standard that provides a framework for implementing an Information Security Management System (ISMS). Organizations that adopt this standard can demonstrate their commitment to maintaining a robust and comprehensive security program that protects sensitive information assets.

Identifying applicable regulations and standards for your organization

To ensure compliance, it is crucial for CFOs to identify which cybersecurity regulations and standards apply to their organization. This process may involve consulting with legal, IT, and security teams and thoroughly assessing your organization's data handling practices, geographical presence, and industry-specific requirements.

Staying updated with evolving cybersecurity requirements

Cybersecurity regulations and standards constantly evolve to address emerging threats and technological advancements. CFOs must ensure that their organization remains up-to-date with these changes by regularly monitoring regulatory updates, participating in industry forums, and collaborating with internal teams and external advisors. Maintaining a proactive approach to compliance will help your organization mitigate risks, avoid penalties, and adapt to the ever-changing cybersecurity landscape.

Developing a Cybersecurity Compliance Strategy

Assessing your organization's current cybersecurity posture

Performing a risk assessment

A risk assessment is the foundation of an effective cybersecurity compliance strategy. This process involves identifying your organization's assets, systems, and data that require protection, evaluating potential threats and vulnerabilities, and determining the potential impact of breaches or incidents. By conducting a thorough risk assessment, you can prioritize efforts and allocate resources to address the most critical risks.

Identifying vulnerabilities and threats

To strengthen your organization's cybersecurity posture, it is essential to identify existing vulnerabilities in your systems, processes, and technology infrastructure. Regular vulnerability assessments, penetration testing, and security audits can help uncover weaknesses that attackers could exploit. Additionally, staying informed about emerging threats and attack patterns can help you prepare for and prevent potential incidents.

Establishing a cybersecurity compliance team

Roles and responsibilities

A dedicated cybersecurity compliance team is crucial for driving and overseeing your organization's compliance efforts. The team should consist of members with expertise in various disciplines, such as IT, legal, risk management, and data privacy. Key roles may include a Chief Information Security Officer (CISO), IT security specialists, data protection officers, and legal advisors. Clearly defining the roles and responsibilities of each team member will ensure accountability and effective collaboration.

Collaboration with other departments

Cybersecurity compliance requires a cross-functional approach, with close collaboration between the cybersecurity compliance team and other departments, such as finance, HR, and operations. This collaborative effort ensures that cybersecurity measures are integrated throughout the organization and that employees at all levels understand their role in maintaining a secure environment.

Creating a cybersecurity compliance roadmap

Defining objectives and milestones

Based on the findings from your risk assessment and the applicable regulations and standards, establish clear objectives and milestones for your organization's cybersecurity compliance efforts. These objectives should align with your overall business goals and address identified risks and vulnerabilities. Setting measurable milestones will enable you to track progress and demonstrate your commitment to cybersecurity compliance to stakeholders.

Prioritizing initiatives

With finite resources and a constantly evolving threat landscape, it is crucial to prioritize cybersecurity initiatives based on their potential impact on your organization's risk profile. Focus on initiatives that address the most significant risks, comply with mandatory regulations, and provide the greatest return on investment. This prioritization will help you allocate resources effectively and ensure that your organization makes steady progress toward achieving its cybersecurity compliance goals.

Implementing Cybersecurity Controls and Measures

Technical controls

Network security

Implementing robust network security measures is essential for protecting your organization's IT infrastructure. This includes deploying firewalls, intrusion detection and prevention systems, network segmentation, and regular vulnerability scanning. Ensuring that security patches and updates are applied in a timely manner can also help prevent attackers from exploiting known vulnerabilities.

Endpoint security

Endpoint security involves safeguarding devices such as laptops, desktops, and mobile devices that connect to your organization's network. Implementing endpoint protection solutions, regular software updates, and device management policies can help prevent unauthorized access and reduce the risk of malware infections.

Data encryption and protection

Encrypting sensitive data at rest and in transit is crucial for preventing unauthorized access and maintaining compliance with data protection regulations. Employ encryption technologies such as SSL/TLS for data transmission and encryption solutions like Advanced Encryption Standard (AES) for data storage. Additionally, ensure proper data backup and recovery procedures are in place to protect against data loss.

Access management and authentication

Implement strong access control measures to ensure only authorized personnel can access sensitive systems and data. This may include role-based access control (RBAC), multi-factor authentication (MFA), and single sign-on (SSO) solutions. Regularly review and update access permissions to minimize the risk of unauthorized access.

Administrative controls

Security policies and procedures

Develop and maintain comprehensive security policies and procedures that outline your organization's approach to cybersecurity and compliance. These documents should address topics such as acceptable use, incident response, and data privacy. Ensure that policies and procedures are regularly reviewed and updated to reflect changes in the threat landscape, regulatory requirements, and organizational objectives.

Employee training and awareness programs

Human error is a leading cause of cybersecurity incidents. Implementing ongoing employee training and awareness programs can help reduce the risk of breaches resulting from phishing attacks, weak passwords, and other common mistakes. Educate employees on cybersecurity best practices, company policies, and their responsibilities in maintaining a secure environment.

Incident response planning

Prepare for potential cybersecurity incidents by developing a comprehensive incident response plan. This plan should outline the steps your organization will take to detect, respond to, and recover from security incidents, as well as the roles and responsibilities of various team members. Regularly review and update the plan, and conduct incident response exercises to ensure your organization is prepared to handle potential threats.

Physical controls

Secure facility access

Implement physical security measures to protect your organization's facilities and IT infrastructure. This may include access control systems, security cameras, and visitor management procedures. Regularly audit physical security measures to ensure their effectiveness in safeguarding your organization's assets.

Hardware security

Protect sensitive hardware such as servers, storage devices, and networking equipment by implementing physical security measures, including locked server rooms and cabinets. Additionally, ensure proper disposal procedures for obsolete or damaged hardware to prevent unauthorized access to sensitive data.

Monitoring and Auditing Cybersecurity Compliance

Establishing key performance indicators (KPIs) for compliance

Develop and track key performance indicators (KPIs) to measure the effectiveness of your organization's cybersecurity compliance efforts. KPIs may include the number of vulnerabilities identified and remediated, the time taken to detect and respond to incidents, and the percentage of employees who have completed cybersecurity training. Monitoring these metrics can help you identify areas for improvement and ensure that your compliance efforts remain on track.

Regular audits and assessments

Conduct regular audits and assessments to evaluate your organization's adherence to cybersecurity regulations and standards and the effectiveness of your security controls and measures. Internal audits should be complemented by periodic external assessments conducted by independent experts to ensure an unbiased evaluation of your compliance efforts.

Incident reporting and management

Establish clear procedures for reporting and managing cybersecurity incidents. This includes documenting incidents, analyzing their root causes, and implementing corrective actions to prevent recurrence. Regularly review incident reports to identify patterns and trends that may indicate weaknesses in your organization's cybersecurity posture.

Continuous improvement and adaptation

Cybersecurity is a dynamic field, with threats and technologies constantly evolving. Adopt a continuous improvement mindset, regularly reviewing and updating your cybersecurity compliance strategy, controls, and measures to address emerging risks and stay aligned with regulatory requirements.

Navigating the Financial Aspects of Cybersecurity Compliance

Budgeting for cybersecurity initiatives

Allocate sufficient financial resources to support your organization's cybersecurity compliance efforts. This may involve developing a dedicated cybersecurity budget, incorporating compliance costs into departmental budgets, or combining both approaches. Regularly review and adjust your budget to reflect your organization's evolving cybersecurity needs and priorities.

Evaluating ROI on cybersecurity investments

Assess your cybersecurity initiatives' return on investment (ROI) by considering factors such as reduced risk, improved compliance, and enhanced customer trust. While quantifying the ROI on cybersecurity investments can be challenging, it is crucial for CFOs to understand the value of these efforts to make informed decisions about resource allocation and prioritize initiatives.

Managing cybersecurity insurance coverage

Cybersecurity insurance can provide financial protection against the costs of cyber incidents, such as data breaches and ransomware attacks. Evaluate your organization's cybersecurity insurance needs and work with brokers or insurers to secure appropriate coverage. Regularly review and update your insurance policies to ensure they align with your organization's risk profile and compliance requirements.

Working with Third-Party Vendors and Partners

Assessing vendor cybersecurity risk

Third-party vendors and partners can introduce cybersecurity risks to your organization if they do not have robust security practices in place. Conduct a thorough assessment of each vendor's cybersecurity posture before entering into a business relationship. This may involve evaluating their security policies, certifications, and history of breaches or incidents. Additionally, consider the type and sensitivity of the data they will handle on your organization's behalf and the potential impact of a breach on your operations.

Leveraging industry-leading software tools like Panorays, numerous organizations streamline and enhance their assessment process, ensuring a more efficient and practical approach to managing cybersecurity risks.

Establishing cybersecurity requirements in contracts

Include precise cybersecurity requirements in contracts with third-party vendors and partners to ensure they adhere to the same standards as your organization. Specify the security controls and measures they must implement, the certifications they must maintain, and the incident reporting and response procedures they must follow. Also, establish the right to conduct audits or assessments of their security practices as a condition of the contract.

Monitoring vendor compliance

Regularly monitor your vendors' and partners' adherence to the cybersecurity requirements outlined in your contracts. This may involve reviewing their security certifications, conducting audits, or requesting periodic security reports. Establish a process for addressing non-compliance, such as working with the vendor to remediate identified issues or terminating the contract if necessary. By actively monitoring vendor compliance, you can minimize the risk of security incidents and maintain a strong cybersecurity posture throughout your supply chain.

Conclusion

The ongoing journey of cybersecurity compliance

Cybersecurity compliance is not a one-time project but an ongoing journey requiring continuous monitoring, improvement, and adaptation. As the threat landscape and regulatory environment evolve, organizations must remain vigilant and proactive in addressing emerging risks and maintaining compliance with relevant standards and regulations.

The importance of CFOs as strategic leaders in cybersecurity

As financial stewards and strategic decision-makers, CFOs play a critical role in driving their organization's cybersecurity compliance efforts. By collaborating with cross-functional teams, allocating appropriate resources, and staying informed of regulatory requirements and industry best practices, CFOs can help ensure the protection of their organization's sensitive data and maintain a robust cybersecurity posture.

Key takeaways and next steps

To successfully navigate the cybersecurity compliance landscape, CFOs should focus on understanding applicable regulations and standards, developing a comprehensive compliance strategy, implementing effective security controls and measures, and continuously monitoring and improving their organization's cybersecurity posture. By taking these steps, CFOs can help their organizations mitigate cybersecurity risks, avoid costly penalties, and foster a culture of security and compliance that is critical to long-term success.

Why is Segregation of Duties Between IT and Cybersecurity Critical for Your Business?

Neglecting your cybersecurity means neglecting your business’s future.

It’s that simple. Every company has to take effective action to minimize its risk of a data breach, leveraging the latest, most effective measures to combat hackers. Software specialists Citrix is just one of the latest brands to come under attack: it’s believed as much as 10TB may have been stolen.

Furthermore, the criminals are said to have gained access to the system through ‘password spraying’, or simply guessing weak, common passwords.

It’s paramount to ensure your business is protected and prepared to deal with any serious cyberattack sent your way. One key aspect of safeguarding your company is Segregation of Duties between IT and cybersecurity. What does that mean and how do you do it?

SoD Defined

Segregation of Duties (or SoD) revolves around keeping multiple people involved with achieving a specific goal, whatever the task at hand may be. Though it started as a process to minimize the danger of mistakes or fraudulent activities, SoD has evolved into an important security issue.

All tasks covered require authorization from two parties to prove integrity and defend against breaches. All individuals involved in undertaking a process of any size would have to be in agreement before the task can be completed.

Segregation of Duties is so important because it takes absolute power out of the hands of any one person within your company, offering greater peace of mind and caution. SoD spreads the privileges for everyone’s benefit and makes cybercriminals’ ‘work’ a little harder

Key Benefits of Segregation of Duties

Segregation of Duties offers businesses numerous compelling benefits, including the following:

Reduce the risk of inside attacks

You trust your employees to work with your system every day. You expect them to be respectful, careful and loyal. You put your faith in them to help steer your company toward success.

And yet, inside attacks are a sad reality of cybersecurity breaches. Not only can an issue caused from the inside be more difficult to detect until it’s too late, but it can be particularly devastating on an emotional level if the attack was intentional.

Dealing with a mistake is one thing. But knowing that an employee you paid and supported facilitated an attack can leave you, and their colleagues, struggling to trust others in the future.

Oversights may cause accidental inside attacks too. This may be down to an employee downloading an attachment from a suspicious email, failing to follow standard practice when making company payments or something equally minor.

Segregation of Duties takes care of all this. For example, if one worker is preparing to download a new tool but requires another’s agreement first, they may discover a security risk before any harm is done. 

This reduces the danger of genuine accidents caused by ignorance and acts as a deterrent for insiders looking to sabotage the business.

Should any attacks take place, it’s far easier to determine which party must have been responsible just by addressing those individuals with access. This is much more difficult when everyone in the company uses every aspect of the system without restraint.

Less power is up for grabs

Imagine if a hacker manages to gain access to your system by cracking an employee’s login details. Imagine if said employee has full access to every tool, every database, every service — a criminal could basically take control of your business and cause monumental damage before they’re shut down.

With Segregation of Duties, you can minimize the power any hacker would wield should they find a way into your network. Accounts are shared between a small group of people and only they have authorized entry. Any sign of unexpected activity within those accounts would indicate a potential issue.

Furthermore, all aspects of your company which require a different set of credentials to enter would be secure. This allows you to focus your attention on the problem areas rather than addressing the entire company.

Accounts and credentials are easier to manage

Businesses implementing SoD can manage access and credentials more easily in the event of a crisis.

Specifically, creating new logins for a compromised account is much easier with just two people to update. It’s a convenient, faster process with less room for error.

Segregation of Duties Between IT and Cybersecurity

Segregation of Duties between your IT department and cybersecurity specialists is vital for increasing your reinforcing business’s defense against hackers.

Your IT team may be experienced, well-trained and qualified, but they have to make sure they’re up-to-date on the latest risks, techniques and solutions in cybersecurity. Without this knowledge, they’re more likely to make mistakes when updating systems, maintaining your network or working with vendors.

Again, SoD means making sure your IT specialists are accountable and have to run their intentions by someone else. The smallest oversight could end up causing massive disruptions and effectively shut your business down on a temporary (or possibly permanent) basis.

Segregation of Duties demands a responsible approach: keep track of which individuals have access to specific accounts and which are authorized to perform certain tasks. Make sure to limit any crossover that could cause problems, such as putting the same person in two or three teams. This may lead to a conflict of interest and questionable choices.

Working with experienced cybersecurity experts is crucial for companies of all sizes, across all industries. Businesses have to take charge of their own protection and implement strategies designed to limit the damage a single attack is capable of.

All companies must stay organized and plan ahead when implementing a SoD strategy. Cybersecurity professionals can advise you on the major threats your business faces and how best to protect against them.

Cybersecurity experts will help you understand what that involves, how to implement Segregation of Duties and combat even the most creative cybercriminals.

Want to learn what The Driz Group can do for your company? Please don’t hesitate to reach out to our dedicated teamnow.

Top 10 Benefits of a Virtual CISO

No company can afford to underestimate the importance of airtight cybersecurity.

Cyber-criminals continue to develop evermore sophisticated ways to attack organizations and exploit weaknesses. Global corporations invest heavily in protecting theirs and their clients’ assets, and even smaller enterprises should do the same.

Chief Information Security Officers (CISO) can make a monumental difference to an organization’s defence against risks. They are responsible for handling cybersecurity, creating strategies to reinforce systems against the most cutting-edge external threats. They need to ensure that all essential policies and procedures are in place to reduce the organization’s vulnerability.

However, bringing an in-house CISO into your office may not be viable if you lack the space and / or available funds.

Virtual CISOs are an effective, affordable alternative for businesses of all sizes, from tiny startups to international chains. Here are 10 key benefits of hiring one for your company.

1. Low-Cost Expertise

First and foremost, hiring a virtual CISO tends to be far cheaper than employing one full-time.

There are no overheads attached, no benefits to consider, no overtime or sick pay. You don’t have to pay them even when they’re sitting at their desk with nothing to do. You essentially reap all the rewards of bringing an invaluable asset into your organization without paying for anything other than their best work.

2. VCISOs Offer More Diverse Knowledge

Most virtual CISOs will possess a wealth of industry experience, having worked with numerous clients across varied sectors.

They are constantly implementing strategies to protect businesses of different sizes against changing threats, gaining valuable knowledge they can apply to your company’s security needs.

This is much more effective and reassuring than hiring a full-time, in-house CISO who may have only worked within one business environment during their career.

3. A Tighter Focus for Better Value

Your virtual CISO specializes in cybersecurity and keeping systems continually protected, developing strategies to reinforce your infrastructure. This is their core focus, their day-to-day commitment.

This is in sharp contrast to bringing an IT specialist into your company who will no doubt be expected to help other employees regain access to their computer, recover forgotten passwords, and remove low-threat malware after someone downloads something they shouldn’t.

You pay for your virtual CISO’s security expertise only, and their time is dedicated to it entirely without less-important distractions.

4. Less Disruption to Everyday Tasks

Hiring a virtual CISO will free up your employees, allowing them the time to focus on their day-to-day tasks and responsibilities without worrying about compliance or related technical issues.

This helps to ensure every department concentrates on their respective goals, free of security-related worries or tasks beyond their technical knowledge.

5. Invaluable Flexibility

Hiring a virtual CISO offers far greater flexibility than a full-time, in-house employee.

For a start, you don’t have to find a place within your company and budget for a new long-term worker. The additional costs that come with that (salary, insurance etc.) are of no concern either.

Furthermore, though, virtual CISOs will generally create tailored services for your exact needs. Perhaps you only want to hire them for a few months to see how it improves your security before committing to a multi-year arrangement. Maybe you’re planning to train your own IT specialists but need the virtual CISO to protect your company in the meantime.

Bringing a virtual CISO aboard in either of these situations is much more preferable to hiring a full-time employee and letting them go once you feel they have served their purpose.

6. Bespoke Service for your Business

Virtual CISOs are familiar with adapting to suit different companies with unique needs. While a CISO with experience within one or two businesses may be stuck in their ways and expect you to work around them, virtual specialists are happy to offer more bespoke services.

They will provide the ideal solutions for your company and processes.

7. Vital Industry Contacts

Virtual CISOs are more likely to have wide-ranging industry contacts from across their career. They tend to maintain relationships with fellow cybersecurity specialists, gain exclusive information on emerging threats, and build networks of useful connections.

Such contacts mean they will be able to learn more and gain additional support if they encounter a technical issue they haven’t seen before, enabling them to get a handle on the situation with minimal delay.

This might involve making a phone call to a thought leader or a contact on the front line of cyber-crime – solutions that in-house employees with little experience may be unable to offer.

8. Independent Expertise without Bias

In-house CISOs may be susceptible to the same distractions, petty arguments, and office politics as the rest of your workforce. This can lead them to lose focus on the task at hand and potentially develop their own agendas.

Maintaining the highest levels of security could seem less important to a disgruntled employee who feels they aren’t getting the respect they deserve. Virtual CISOs, though, tend to be completely neutral, channeling all their energy into protecting your company no matter what.

9. Minimal Disruption to your Organization

Your virtual CISO can work independently and without supervision. They will no doubt need to learn about your business and your operations, but they certainly don’t require any training or input.

They will be able to work quickly and efficiently, identifying potential vulnerabilities and updating your system for the utmost protection. Your business will be able to continue as normal without any of the time-consuming training or administrative duties involved with hiring a new full-time employee.

10. Ongoing Commitment and Quality

A CISO working as part of your in-house team will end up leaving you at one time or another, whether they are headhunted by a competitor or simply want a change. This can leave you without their expertise if you wait too long to bring a new specialist aboard, and means you have to start afresh again.

You can enjoy greater continuity and seamless service with a virtual CISO. Even if the person(s) assigned to your business leaves the company you hire, there will be no disruption – you may not even realize a change has occurred at all.

Do you have questions about working with a virtual CISO? Our expert team is here to answer them!

6 Top Things to Do in Preparation for the GDPR Implementation

May 25, 2018 – is the full implementation of the General Data Protection Regulation (GDPR).

The GDPR is a European Union (EU) law that sets out the obligations of organizations in order to protect the personal data of EU residents. The law also sets out harsh penalties in case of failure to comply.

Even if your organization isn’t based in any of the EU states, the implementation of the GPDR will still impact your organization as this law has extra-territorial scope.

This means that even if your organization is based, for instance, in Canada, this European law still applies if your organization processes personal data of EU residents. For example, if your organization offers goods or services (regardless of whether payment is made) or monitors the behavior of EU residents, your organization is covered under GDPR. And even if your organization is a small one, that is, it only employs fewer than 250 people, it’s still covered under GDPR.

The personal data referred to by the law refers to any information that can be used to identify a person either directly or indirectly, including name, email address, photo, medical information, bank details, posts on social networking websites and computer IP address.

Here are the 6 top things to do in order to prepare your organization for the upcoming implementation of GDPR:

1. Make Consent Process User-Friendly

In GDPR, your organization will no longer be allowed to use long and legalese terms and conditions to request for personal data consent.

Under the EU law, request for consent must be presented in layman’s terms and the purpose of the data processing must also be presented in clear and plain language. There must also be an easy way for customers to withdraw their consent. In the case of minors, parental consent must be given.

2. Delete Data that No Longer Serves Original Purpose

Under the GDPR, the right to erasure, also known as the right to be forgotten, is enshrined. Article 17 of the EU law provides that data should be deleted when the data no longer serves the original purpose of processing and when the data subject withdraws his or her consent. The law, however, provides that the right to be forgotten must be weighed against "the public interest in the availability of the data".

3. Implement Data Protection as Precautionary Measure, Not as an Afterthought

The GDPR calls for “privacy by design” – a concept now made into law that requires organizations to make data protection as part of the preventive measure, instead as an afterthought or reactionary measures.

The law specifically requires organizations processing personal data to implement appropriate technical and organizational measures in order to protect personal data that it processes.

Organizations, under the law, are required to hold and process only the personal data that’s necessary for the completion of its functions. The law also requires organizations to limit the access to personal data only to those who are necessary for carrying out the data processing task.

4. Be Transparent to Affected Individuals

Part of the expanded rights of EU residents under the GDPR is the right to obtain confirmation from organizations as to whether or not their data is being processed, for what purpose and where. Organizations are also required under the law to provide free digital copy of the personal data being processed to the affected individuals.

5. Determine if Your Organization Needs to Appoint a Data Protection Officer (DPO)

Appointment of a Data Protection Officer (DPO) is mandatory under GDPR only if your organization engages in large-scale systematic monitoring or large-scale processing of sensitive personal data. If your organization doesn’t engage in any of these functions, then there’s no need to appoint a DPO.

6. Be Transparent About Data Breach

Under GDPR, there will be no more concealing of data breaches. Notification is mandatory under this law in case where the data breach is likely to “result in a risk for the rights and freedoms of individuals”. This law requires that data breach notification to the concerned agency must be done within 72 hours after first having become aware of the breach. Notification to affected customers, meanwhile, has to be done “without undue delay” after first becoming aware of a data breach.

Penalties for Non-Compliance

Several factors are taken into consideration in calculating the fine under GDPR. These factors include:

• Nature, gravity and duration of non-compliance, for example, the number of people affected and damage cost
• Whether the non-compliance of the law was intentional or as a result of negligence
• Whether the organization took steps in mitigating the damage
• Technical and organizational preventive measures that had been implemented by the organization
• Prior record of non-compliance
• Types of personal data involved
• How the non-compliance was discovered

The maximum fine that can be imposed for a breach of this law is 4% of the annual global turnover or €20 Million, whichever is higher. The maximum fine is imposed for the non-compliance of key provisions of GDPR such as violating the core of Privacy by Design concepts and failure to get sufficient customer consent to process data.

The penalty of 2% of the annual global turnover or €10 million, whichever is higher, meanwhile, can be imposed in case of non-compliance of technical measures such as failure to report data breach and failure to give affected individuals access to personal data being processed.

"Rapid technological developments and globalisation have brought new challenges for the protection of personal data,” the law states. “The scale of the collection and sharing of personal data has increased significantly. Technology allows both private companies and public authorities to make use of personal data on an unprecedented scale in order to pursue their activities. Natural persons increasingly make personal information available publicly and globally. Technology has transformed both the economy and social life, and should further facilitate the free flow of personal data within the Union and the transfer to third countries and international organisations, while ensuring a high level of the protection of personal data.”