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What does GDPR mean to SMEs?
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What does GDPR mean to SMEs?


Written by SRM

24th July 2017

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What does GDPR mean to SME

by Melanie Taylor, Information Security Consultant

“With less than a year to the deadline for compliance with the General Data Protection Regulation, all companies should have assessed what they need to do and should be working on that”. So says the Information Commissioner’s Office. Anyone wondering about their company’s preparedness should prioritise the appointment of a data protection officer (DPO) to ensure compliance from 25th May 2018.

When it comes to the appointment of a DPO there is no exemption for small to medium-sized enterprises (SMEs). In the final version of the GDPR, all organisations that carry out large-scale systematic monitoring of individuals, such as online behaviour tracking or large-scale processing of data, are required to appoint a DPO either in the form of an in-house employee or a contractor

While there is a general derogation for SMEs this only applies to record-keeping and processing activities, and does not apply if an organisation is processing personal data that could result in a risk to the rights and freedoms of an individual, or the processing of special categories of data or criminal convictions and offences.

In all companies good data governance is an issue which should be addressed at board level. It is not simply the task of the IT department to ensure compliance. Everyone in an SME needs to understand the importance of GDPR compliance; not least because it makes good business sense. Research by the ICO shows that 77 per cent of consumers are concerned about their personal data, 20 per cent would move their business elsewhere in direct response to a breach.

But for added leverage, it is worth pointing out the significantly larger fines that can be imposed for non-compliance under GDPR. It has been estimated that the ICO fines imposed after the implementation of GDPR in May 2018 will be 79 times higher than they were under the Data Protection Act.

The good news is that those companies that are already compliant with current UK data protection law will not have much to do to comply with the GDPR. But they will at least have to check that they are able to comply with what is new, such as the right to be forgotten, right to data portability and the new consent rules for processing

SMEs should also note that data breach notification is another important requirement to be introduced by the GDPR. Organisations need to ensure they have the procedures in place to detect, investigate and report personal data breaches. In fact, failure to report a personal data breach within 72 hours of identifying it will result in a fine as well as the breach itself.

SRM has operated in the data security environment for many years. With a wide range of knowledge and practical experience, our consultants are ready to help you understand the risks to your information and manage them effectively. Our specialist team provides a full portfolio of services which include data protection. We can assist companies to be in a more ready state for GDPR compliance when it comes into effect next year.

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