With just over six months to go until the EU’s general data protection regulation (GDPR) becomes law, just 8% of businesses across Europe report they are prepared for the new measures, which include provision for fines of face fines of up to €20m for failure to comply, according to research from RSM
The firm’s poll of 400 business leaders found that only a tiny minority have made the necessary changes to be compliant with the regulation, while more than a quarter (28%) are completely unaware of the regulation they will have to adhere to.
In addition 26% of those familiar with their company’s GDPR strategy, admit their organisation will not be compliant by the May 2018 deadline.
Businesses that fail to comply before the deadline for the new measures, which include new requirements to protect customer data and to remove database details, could face fines of up to 4% of global turnover or €20m (£17.8m), whichever is higher.
The complexity of the GDPR regulation is starting to weigh on European businesses, RSM found. Of those that are looking at the regulation, 51% believe it is too complicated for SMEs and middle market businesses, while 41% of those involved in or aware of their organisation’s strategy believe the requirements of the GDPR regulation will significantly increase their business expenditure, including spending on consulting services.
The use of external expertise is increasingly prevalent, with 60% of businesses looking for external support in order to deliver their compliance project before the May 2018 deadline.
The survey findings suggest the process of preparing for GDPR is already impacting business operations, with a number of businesses cutting back in other areas including plans to create innovative new products (23%) or to fuel growth through international expansion (22%).
Despite the complexity of the regulation, businesses do appreciate the necessity of GDPR. Business leaders across Europe support the changes with the majority (52%) agreeing that regulation to monitor the use of personal data is necessary.
Jean Stephens, CEO, RSM, said: ‘We have seen an increase in clients asking us about GDPR consulting services, however, it is clear from this research that many businesses do not fully comprehend the hurdles they will have to overcome ahead of the fast-approaching deadline.
‘Business leaders need to understand that this is not a simple tick-box exercise. They will likely need to implement significant changes that could impact their organisation as a whole and so the sooner they begin to prepare, the better.’
Report by Pat Sweet
