Legal tech company Axiom informed that its study had demonstrated that Fortune 500 and FTSE 100 companies might end up paying about £800 million in order to scrutinize agreements, to make sure compliance with the General Data Protection Regulation (GDPR). This is clearly a big amount of expenses and one that several businesses are still in the course of scheduling for.
No doubt, getting ready for the launch of GDPR, in May 2018, will not charge every company, organization or business that sum of money. Charges very much rely on what procedures are presently in place, and what scope and scale of private data a business deals with.
What are the Concerns regarding Cost?
Among the main costs for any business is possibly to check the data that they presently possess, to ensure that it abides by GDPR laws. Based on the volume of data concerned, this might be a considerably expensive exercise, in terms of workforce. Companies with over 250 workers will also handle the cost of employing or coaching a data protection officer (DPO) if there isn’t already one ready. This is a requirement of GDPR.
The Charge of Non-Compliance
But high the cost of abiding by GDPR might appear, the charge of non-compliance might be considerably higher. There will be a method of penalties in position, including a maximum possible penalty of 20 million Euros, or 4% of the yearly transaction, whichever is more. There is also the charge of harm to status to take into consideration. Any business which suffers a data safety breach is in danger of experiencing this kind of reputational damage.
The truth is that any business which is cautious of investing in GDPR compliance or attempts to cut corners, is in danger of facing far more expenses, as a consequence of non-compliance.