General Data Protection Regulation

Definition

The General Data Protection Regulation (GDPR) is a comprehensive data protection law in the European Union that came into effect on May 25, 2018. It aims to enhance individuals' control over their personal data and unify regulations across EU member states. GDPR sets strict guidelines on the collection, storage, and processing of personal information, significantly impacting how organizations manage data, especially in environments like cloud-based business intelligence systems.

5 Must Know Facts For Your Next Test

1. GDPR applies not only to organizations based in the EU but also to any entity that processes the personal data of EU residents, regardless of where the organization is located.
2. Under GDPR, organizations must obtain explicit consent from individuals before collecting or processing their personal data, making transparency crucial.
3. Organizations are required to appoint a Data Protection Officer (DPO) if they process large amounts of personal data or handle sensitive information.
4. Fines for non-compliance with GDPR can reach up to €20 million or 4% of a company's global annual revenue, whichever is higher.
5. The regulation emphasizes the concept of 'privacy by design,' meaning data protection measures should be integrated into the development of business processes and technologies from the outset.

Review Questions

• How does GDPR impact organizations that utilize cloud-based business intelligence solutions for data management?
  • GDPR significantly impacts organizations using cloud-based business intelligence solutions as they must ensure compliance with strict data protection rules. This includes obtaining explicit consent for data collection and processing, ensuring secure storage of personal data, and implementing robust measures for data protection. Additionally, organizations need to work closely with cloud service providers to ensure they also adhere to GDPR standards, as non-compliance could lead to substantial fines and legal consequences.
• Discuss the rights granted to individuals under GDPR and how these rights can affect data handling practices in businesses.
  • Under GDPR, individuals are granted several rights, including the right to access their personal data, rectify inaccuracies, erase their data (the 'right to be forgotten'), and object to processing. These rights require businesses to adopt transparent data handling practices and establish procedures for individuals to exercise their rights effectively. Organizations must be prepared to provide timely responses to requests and ensure they have clear policies for managing personal information while respecting individuals' autonomy over their own data.
• Evaluate the potential consequences of a data breach for an organization under GDPR and its implications for business operations.
  • A data breach under GDPR can lead to severe consequences for an organization, including hefty fines and reputational damage. Organizations are mandated to report breaches within 72 hours to relevant authorities and affected individuals if there's a risk to their rights and freedoms. This requirement not only puts pressure on businesses to maintain robust security measures but also necessitates clear incident response strategies. The implications extend beyond legal repercussions; businesses may face loss of customer trust and reduced competitiveness in a market increasingly concerned about data privacy.

Related terms

Personal Data: Any information that relates to an identified or identifiable individual, including names, email addresses, and identification numbers.

Data Subject Rights: The rights granted to individuals under GDPR, including the right to access, rectify, erase, restrict processing, and object to data processing.

Data Breach: An incident where personal data is accessed, disclosed, or destroyed without authorization, requiring organizations to notify authorities and affected individuals under GDPR.