Regarding GDPR, company leaders are in two minds. Non-compliance is going to cost 4 percent of the total revenue or 20 million euros, quite a large sum to ignore. If you also look at the brighter side of GDPR implementation, more transparency will come in the data relationship between the consumers and data controllers or processors. In this article at InformationWeek, Dimitri Sirota talks about how GDPR can drive tangible benefits for companies.
The Beneficial Side of GDPR
As per the International Association of Privacy Professionals, Fortune 500 companies are going to spend $7.8 billion to keep up with the GDPR rules and regulations. In the initial phase, the operational cost may soar high. However, you will derive benefits if you evaluate the outcomes from a strategic standpoint. At first, know what data your company is collecting. Based on that, you will be prepared to address areas like access privileges, permission, breach redressal, and data handling and storage. If you can provide satisfactory answers, you will see tangible benefits when it gets implemented on May 25, 2018.
- More Customer-Centric Business: GDPR will enable companies to understand their customers better. Instead of just collecting data, you would want to be selective about the data you collect, process, and store to derive value.
- Reduction of Insurance Costs: By 2020, cyber insurance costs are expected to grow up to $7.5 billion. However, if you are following the GDPR mandates from the tee, you will see a huge reduction in cyber insurance costs. Also, GDPR would allow companies to be careful about the data they handle and analyze the associated risks. As a result, you will optimize your data collection ability, redirect hackers with data tokenization, and be proactive about understanding the data requirements.
- Reduction of Response Expenses: Ponemon Institute’s “2017 Cost of Data Breach Study,” reveals that a breach can incur an average global cost of $3.6 million on you. GDPR compels you to inform the affected within 72 hours. This rule enforcement will decrease data breach response time significantly. As you will already have a better knowledge of the data source, you do not have to set aside a budget to find the affected consumers.
- Building a Lasting Relationship: Since the company is accountable for the data you use, you will strive to structure better processes, security, and infrastructure to enable business efforts. This would build a relationship of trust with customers.
To view the original article in full, visit the following link: https://www.informationweek.com/strategic-cio/security-and-risk-strategy/gdpr-a-cost-vs-benefit-analysis/a/d-id/1331616