The EU is ramping up the focus on privacy with a new regulation that will be implemented into local legislations in the EEC area from 2018. The changes are huge for some countries, and in particular the sanctions the new law is making available to authorities should be cause for concern for business that have not adapted. Shockingly, a Norwegian survey shows that 1 in 3 business leaders have not even heard of the new legislation, and 80% of the respondents have not made any effort to learn about the new requirements and its implications for their business (read the DN article here in Norwegian: http://www.dn.no/nyheter/2017/02/18/1149/Teknologi/norske-ledere-uvitende-om-ny-personvernlov). The Norwegian Data Protection Authority says this is “shocking” and says all businesses will face new requirements and that it is the duty of business leaders to orient themselves about this and act to comply with the new rules.
Here’s a short form of key requirements in the new regulation:
- You need to do a risk assessment for privacy and data protection of personal data. The risk assessment should consider the risk to the owner of the data, not only the business. If the potential consequences of a data breach are high for the data owner, the authorities should be involved in discussions on how to mitigate the risk.
- All new solutions need to build privacy protections into the design. The highest level of data protection in a software’s settings must be used as default, meaning you can only collect a minimum of data by default unless the user actively changes the settings to allow you to collect more data. This will have large implications for many cloud providers that by default collect a lot of data. See for example here, how Google Maps is collecting location data and tracking the user’s location: https://safecontrols.blog/2017/02/18/physically-tracking-people-using-their-cloud-service-accounts/
- All services run by authorities and most services run by private companies will require the organization to assign a data protection officer responsible for compliance with the GDPR and for communicating with the authorities. This applies to all businesses that in their operation is handling personal data on a certain scale and frequency – meaning in practice that most businesses must have a data protection officer. It is permissible to hire in a third-party for this role instead of having an employee to fill the position.
- The new regulation also applies to non-European businesses that offer services to Europe.
- The new rules also apply to data processing service providers, and subcontractors. That means that cloud providers must also follow these rules, even if the service is used by their customer, who must also comply.
- There will be new rules about communication of data breaches – both to the data protection authorities and to the data subjects being harmed. All breaches that have implications for individuals must be reported to the data protection authorities within 72 hours of the breach.
- The data subjects hold the keys to your use of their data. If you store data about a person and this person orders you to delete their personal data, you must do so. You are also required to let the person transfer personal data to another service provider in a commonly used file format if so requested.
The new regulation also provides the authorities with the ability to impose very large fines, up to 20 million Euros or up to 4% of the global annual turnover, whichever is greater.This is, however, a maximum and not likely to be the normal sanctions. A warning letter would be the start, then audits from the data protection authorities. Fines can be issued but will most likely be within the common practice of corporate fines within the country in question.
Implications for cybersecurity
The GDPR has focus on privacy and the mechanisms necessary to avoid abuse of personal data. The regulation also requires you to be vigilant about cybersecurity in order to avoid data breaches. In practicular, Section 39 states (see text here: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2016:119:FULL):
“Personal data should be processed in a manner that ensures appropriate security and confidentiality of the personal data, including for preventing unauthorised access to or use of personal data and the equipment used for the processing.”
This means that you should implement reasonable controls for ensuring the confidentiality, integrity and availability of these data and the processing facilities (software, networks, hardware, and also the people involved in processing the data). It would be a very good idea to implement at least a reasonable information security management system, following good practices such as described in ISO 27001. If you want a roadmap to an ISO 27001 compliance management system, see this post summarizing the key aspects there: https://safecontrols.blog/2017/02/12/getting-started-with-information-management-systems-based-on-iso-27001/.
You may also be interested in the 88-page slide deck with an overview of cybersecurity basics: it is a free download if you sign up as a Safecontrols Insider.