With the introduction of GDPR back in May 2018, organizations suddenly had to be more aware of their data and how it was handled and shared. However, there are many other frameworks you need to be compliant with, including cyber security, to ensure you remain reputable and profitable.
There are several reasons why organizations should respect and comply with the rules and guidelines when it comes to data and security. But one of the vital reasons is, you should want to care. By complying with all the guidelines set out you are showing customers you care about keeping their data safe, as well as keeping your employees and company secure. By ensuring your customers know their details will be secure with you and that they are safe to visit your site, it will help improve relationships as well as build up respect and brand loyalty.
But there are also several other answers to the question, why should I be compliant, which we will discuss now.
If you or your company is found breaching important rules and guidelines such as GDPR, you could be looking at a hefty fine, which has the potential to financially cripple you or at least take a large amount out of your profits. For example, the maximum fine you could be facing if you breach GDPR guidelines in the UK is anything up to £18 million, or 4% of your global turnover, whichever one is greater. This amount of money isn't easy to recover from.
Not only could a breach or failure to comply cause you a large financial loss, but you could also be looking at a severely damaged reputation. Data breaches and cyber-attacks are widely reported in the press. This means it is likely that your current and potential customers will see this.
Not only that, but if the breach involves their data, logins, or anything else, they would need to be informed. A simple breach or non-compliance could lead to your company getting a bad reputation and the loss of many customers as they may no longer trust you with their business. This means that you are likely to be experiencing further financial loss on top of any fine.
The loss of reputation would not only apply to the customers. You may also see your organization losing vendors or business partnerships due to a lack of trust and/or respect. This would mean a further loss of business as well as a potential loss of opportunities you received from those sources.
The restrictions and penalties don't stop there when it comes to failing to comply with guidelines and rules. If the breach or error was substantial, you might find privileges removed or restrictions applied to your company. You may even be banned temporarily or permanently from processing data. This makes business very complicated, and in some instances impossible, especially if you are in eCommerce. The guiding body may also revoke any rights to transfer data to another country, making it difficult for your company to conduct business overseas.
As you can see, there are several implications and damaging consequences if you aren’t compliant with the latest data and cyber security frameworks.