Definition of Data Breach
In accordance with the GDPR, a data breach is defined as the unauthorised access, disclosure or use of personal information. This data may include general personal information (common personal data) and/or special personal information (sensitive data), such as financial information, health information or any other type of information protected by privacy legislation.
Examples of Personal Data Breaches
The following are examples of data breaches that may occur in a business context:
- Unauthorized access: A third party gains access to company systems and accesses personal customer data.
- Data loss: An employee loses a mobile device containing sensitive information.
- Accidental disclosure: Personal data is accidentally sent to the wrong recipients via email.
Legal and Financial Consequences
The consequences of a personal data breach can be severe and include:
- Administrative penalties: The GDPR stipulates that organizations may be subject to penalties of up to EUR 20 million or 4% of global annual turnover, whichever is greater, in the event of a particularly serious breach.
- Notification obligation: It is the responsibility of companies to notify affected individuals and the
relevant authorities of any data breach within 72 hours of discovery, unless there are extenuating
circumstances. - Potential damage to the company's reputation: A loss of customer trust can have a lasting impact on a company's reputation. In the event of a breach, legal action may be taken. In the event of a data breach, individuals whose
data has been compromised may take legal action against the company.
Breach Procedures
To properly handle a data breach, it is essential to follow a number of steps:
- Identification and Containment: Identify the source of the breach and take immediate action to contain it.
- Risk Assessment: Determine the type of data compromised and assess the risk to affected individuals.
- Notification:Depending on the outcome of the review and risk assessment, it may be mandatory to notify the competent authorities within 72 hours of discovering the breach and the affected individuals.
- Remediation and Prevention: Implement measures to prevent future breaches, such as security updates and employee training.
Importance of Prevention and Proper Management
It is always preferable to prevent a data breach rather than having to manage it. It is vital to implement appropriate security measures, such as data encryption, controlled access and constant monitoring of systems, in order to protect sensitive information. Furthermore, a clearly defined and tested data breach response plan can significantly mitigate the impact of a breach.
Conclusion
In conclusion, data breaches present a significant threat to businesses, with potential legal, financial and reputational consequences. It is vital to implement preventative measures and have a clearly defined response plan in place to effectively manage a data breach. For further details on how to safeguard your company and effectively respond to data breaches, please visit Agile Compliance.
