Recently, we endeavored to conduct a new major survey, sponsored by our internationally focused law firm McDermott Will & Emery and carried out by the Ponemon Institute (hat tip to the IAPP for helping with some question development). Quite simply, it has revealed that many companies are behind schedule to achieve General Data Protection Regulation compliance by the looming May deadline. The survey results show that 40 percent of companies only expect to achieve compliance with the regulation after May 25, when the Regulation comes into effect.
Our McDermott-Ponemon study surveyed companies across the U.S. and Europe on their understanding of the impact of GDPR and their readiness for it. Key findings of this important benchmark survey include:
52 pecent of the companies responded that they expect to be compliant on or before the May 25 deadline, and an additional 40 percent expect to become compliant after the deadline (note that 8 percent of companies were not sure when they will achieve compliance).
60 percent of respondents say GDPR will “significantly change” their organizations’ workflows regarding the collection, use and protection of personal information, with 71 percent acknowledging that lack of compliance could have a detrimental impact on their companies’ ability to conduct business globally.
Preparing for data breach notification, a cornerstone of the regulation, is viewed as the most difficult obligation according to 83 percent of respondents – with 68 percent saying that inability to comply with the notification requirement poses the greatest risk to their companies.
For Mark, what was most striking is that there is a lot more work to be done for GDPR readiness, as this study shows. These findings reflect the demanding nature of GDPR and the anxiety around complying with it. A key issue here is prioritizing what can be done in the remaining time before that May deadline and acting on those high risk areas.
The survey shows that companies are investing heavily in attempting to achieve GDPR compliance.
The survey shows that companies are investing heavily in attempting to achieve GDPR compliance. The average annual budget for compliance is $13 million according to the findings – a figure that one in three companies expects to review annually. More than one in five (22 percent) believe that a budget allocation will continue indefinitely in their organization due to a need to continue with investment in technologies, governance practices and staffing. Respondents believe that the majority of the budget will be spent on managed services (28 percent of spend), followed by personnel (19 percent of spend) and technology (17 percent of spend). The annual budget for GDPR compliance varies by head count but, of the companies surveyed, even those with 1,000-5000 headcount were investing on average just over $8 million for GDPR.
Examining the data, Larry noted the risks of failing to comply with GDPR have been most often reflected by organizations’ fear of the potential size of the financial penalties that non-compliance could bring about. The headline figures – fines of up to €20m or 4 percent of global turnover, whichever is the greater amount – represent a potentially massive fine for companies.