As per Statista, the data security market is expected to bloom by 11.28% between 2024 and 2029. Facts like this show us that data support as a career has a huge scope with advancements and technological developments expected in the near future. But the data defense industry itself is nothing without its foundations – strong ordinance policies and establishments to cater for them.
One such legislation set by the European Union (EU) is the GDPR. Abbreviation for General Data Protection Regulation, GDPR is a set of laws approved by the European Parliament back in April 2016 and enacted in May 2018. This unified batch of rules is mandatory to be followed by organizations dealing with the personal data of individuals and enterprises that fall within the EU, regardless of the premise of the organization.
Purpose of GDPR
The main goal of GDPR is the protection of the fundamental rights of individuals through data defense. As stated in the European Convention on Human Rights, every individual has the right to his privacy and freedom. To protect the freedom of EU residents from European organizations handling their private information, all such establishments must comply with the seven principles/rules of GDPR. Corporations outside of Europe that deal with information about EU citizens are also bound to obey the regulation, and this phenomenon is known as the ‘extra-territorial effect’.
Relevance of GDPR in Cyber Security
Unlike many cyber safekeeping measures that are a post-requisite of cybercrime, that order acts as a preventive tool or prerequisite. GDPR helps ensure the confidentiality, integrity, and privacy of information during storage, exchange, and official alteration stages. In short, under the General Data Protection Regulation, data is safely processed so that no criminal or hacker can get to it after breaching the walls or safekeeping protocols of the organization which is also the transferee party.
Principles of GDPR
The seven principles mentioned in Article 5 of GDPR are the core of its existence. These principles sum up the entirety of this law order, as they list down the main areas of focus. Even though these principles are majorly subjective, they brief establishments with a checklist to complete for compliance.
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Lawfulness
The first principle stated in the article as ‘lawfulness, fairness, and transparency’ mentions the data subject’s (individual) right to his data. The controller or organization handling the personal information must inform the subject in a clear, concise, and easily understandable format about the use of data.
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Purpose Limitation
The second principle mentions that information must be collected from individuals for specific purposes. The use of this data is restricted for the legitimate reasons previously specified to the individuals. Use of the information for further processing after original purpose fulfillment is strictly forbidden unless the individual is asked for permission.
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Data Minimization
For the security of data, it is necessary that minimum information is collected from individuals. Gathering additional data to act as a backup is not allowed as the more information is gathered, the more objects for risk are present to protect. Since the regulation doesn’t mention what amount of data is adequate, this principle is to be handled with attention.
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Accuracy
Individual’s personal information is inconsistent in nature, meaning it can change with time. It is the responsibility of the controller to keep the data up-to-date for future use. Hence, both the original and up-to-date data should be accurate and rectified (in case of incorrect data) after consulting the data subject.
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Storage Limitation
Holding the data for long periods after the fulfillment of the purpose is strictly forbidden by the GDPR. The reason being obvious is that information in foreign data systems, be it anywhere in the world, (including Europe) is not safe from white-collar criminals. That being said, some corporations are allowed to hold information for archiving purposes like scientific research or statistical reasons.
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Integrity & Confidentiality
Preserving the integrity and confidentiality of the data is the biggest challenge a controlling party can face. GDPR clearly states that the organization should protect the information against all accidental and deliberate harm. To do so, the controller must religiously carry out safety checks and encrypt each data set.
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Accountability
Compliance with the above principles is necessary but showing compliance is also important, which rephrases the last clause – accountability. The order requires establishments to have a Data Protection Officer (DPO) to ensure all Data Protection Impact Assessments (DPIA) are carried out regularly. The DPO acts as a supervisor on behalf of the order, ensuring all internal policies and processes are up to the standard.
Criticisms of GDPR
The benefits of GDPR are well-known, but what about the setbacks? Like all safety frameworks, this one also features its fair share of cons that oftentimes restrict organizations from reaching out to the EU customer base. Let’s see what these criticisms are about.
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Requirement of DPO
One recent criticism of GDPR is the requirement that compliant enterprises appoint a DPO. According to Person, 32% of American companies had appointed a DPO in the previous years, because of the last GDPR principle. For a corporation that runs on restricted funds, a DPO might prove to be a burden for the company.
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Expensive Operations
The safety standard set by GDPR is not only tough to establish but also hard to maintain. It requires the use of agencies and tools that are hefty and expensive. Companies dealing with EU data have to bear extra costs for facilitating the residents with their products or services in exchange for data, which seems like a bad trade on their part.
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Fines & Penalties
On infringements or breaches of rules, GDPR imposes extreme penalties on the controlling organization. For serious infringements, the regulation can charge the higher of Є20 million or 4% of the controller’s previous financial year net revenue. As a forbearing penalty, it charges up to Є10 million. The corporation might have to pay 2% of its previous year’s annual revenue if not the specified fine. Both tiers of fines are extreme and discourage companies from expanding to EU countries.
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Advanced Skill Set
For establishments that avoid dealing with international cyber security or risk agencies, regular IT enthusiasts are not suitable. To conduct safety practices as per GDPR standards, advanced skills and education on the topic matter are crucial. This leads companies with no option other than outsourcing the data operations.
Importance of GDPR in Cyber Security
As of today, personal data is the most sensitive and precious thing in dire need of defense. However, information travels at superfast speed with casual transactions that require frequent exchange of personal data handed over, willingly, by yourself to organizations.
Keeping this frequent transfer need in view and the sensitivity of the data, the EU came up with regulations and policies to protect its residents from the negatives of data breaches and various digital crimes.
GDPR is the strictest data defense order on the planet. In fact, the regulations are so strict that 9% of compliant organizations admitted that it takes more than a year to reach compliance standards.
This safekeeping protocol ensures any kind of data original in the EU stays safe worldwide. Secondarily, it acts as a measure to eradicate cybercrime from Europe, giving residents peace of mind.
Final Words
No matter where you are in the world, if you’re a resident of an EU country, your data is encapsulated safely, thanks to GDPR. It plays a crucial role in cyber computing and even acts as a role model for enterprises that have nothing to do with EU residents/client companies.
The General Data Protection Regulation is a complete framework to enhance and strengthen the barriers of your IT setup. It safeguards the root reason for most types of cyber crimes and that is why organizations that comply with GDPR enjoy high credibility.