Eighty-six percent of organizations worldwide are concerned that a failure to adhere to the upcoming General Data Protection Regulation (GDPR) could have a major negative impact on their business, reveals a global study from Veritas Technologies.
Key findings reveal that many companies are struggling to solve compliance issues because they lack the proper technology to address compliance regulations.
Nearly 20 percent said they fear that non-compliance could put them out of business. In Singapore, the numbers are higher than the global average, with 92 percent of all local organizations expressing concerns over the potential GDPR fallout, along with 20 percent who fear that their business could shut down due to non-compliance. This is in the face of potential fines for non-compliance as high as USD21 million (or SGD 29.8 million) or four percent of annual turnover – whichever is greater.
Intended to harmonize the governance of information that relates to individuals (“personal data”) across European Union (EU) member states, the GDPR requires greater oversight of where and how personal data—including credit card, banking and health information—is stored and transferred, and how access to it is policed and audited by organizations.
GDPR, which takes effect on May 25, 2018, will not only affect companies within the EU, but extend globally, impacting any company that offers goods or services to EU residents, or monitors their behavior, for example, by tracking their buying habits. The study indicates that a whopping 47 percent of organizations globally have major doubts that they will meet this impending compliance deadline. In Singapore, the number beats the global average, sitting at 56 percent.
The research findings from The Veritas 2017 GDPR Report, which surveyed more than 900 senior business decision makers in 2017 across Europe, the U.S. and Asia Pacific, also found that more than 20 percent (21%) are very worried about potential layoffs, fearing that staff reductions may be an inevitable outcome as a result of financial penalties incurred as a result of GDPR compliance failures. Similarly, Singapore faces the same sentiments, with 19 percent fearing potential loss of jobs.
Companies are also worried about the impact non-compliance could have on their brand image, especially if and when a compliance failure is made public, potentially as a result of the new obligations to notify data breaches to those affected.
In Singapore, 20 percent surveyed fear that negative media or social coverage could cause their organization to lose customers, slightly above the global average of 19 percent. An additional one in ten (10%), similar to the global average of 12 percent, are very concerned that their brand would be de-valued as a result of negative coverage.