We all know the age old saying “Fail to prepare, prepare to fail” as one that is consistently thrown around as a saying to live and work by. Here at DCA Accountants we are firm believers in planning ahead and the manner in which forward planning can have a tremendously positive effect on the day-to-day running of your business. Today we will be speaking about a new regulation, which won’t come into full effect until April 2018, but which will require thinking and planning ahead in order to ensure a smooth transition.
As of April 14th 2016, the EU has adopted the General Data Protection Regulation. This regulation is one by which is intended to strengthen and unify data protection regulations for all individuals within the EU. The regulation will also address the export of personal data outside of the EU, a clause which may have interesting repercussions for Ireland in the wake of Britain’s shock departure from the European Union. The EU aims to cut red tape for businesses in the EU by ensuring that there be one set of rules for all to follow. This new regulation will also aim to protect the data of all residents and workers of the European Union.
This regulation will require business owners to be aware and knowledgeable about its effects before finally coming into action in April 2018 following four years of negotiation. Under these new rules individuals will have more control over how their personal data is processed as data protection will now be as default and will require consent. What this means for business owners is that there will be a need for a higher level of vigilance in terms of dealing with the personal data of employees or clients as there will now be more accountability placed on companies regarding the use of personal data. The repercussions of a failure to comply can amount to a fine of up to 4% of the company’s global annual turnover, meaning that this is an issue which will need to be prepared for in order to avoid costly errors.
One highly recommended way to prepare for this incoming regulation would be to review the entire data protection plan for the business and create a new classification scheme in order to ensure that all personal data will be managed effectively and according to the new guidelines. This will also ensure a full and working knowledge about where this data is kept at all times. A risk-based approach is also recommended when dealing with personal data. This requires data sources to be separated into different risk categories in order to assess a better management system.
These new regulations have been a long time coming, and wont yet come into effect until April 2018, however it is important to have any possible data issues ironed out before this date in order to avoid penalties. Should you require any assistance or guidance on these or any other business matters, please don’t hesitate to contact us here at DCA Accountants, where we will be happy to assist and advise in any way possible.
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