Data protection is no longer a 'nice-to-have'; it's a critical business function. With the implementation of the General Data Protection Regulation (GDPR), the stakes are higher than ever. In this blog, we delve into why data protection should be a cornerstone for small and medium-sized enterprises (SMEs).
Financial Repercussions
The financial ramifications of GDPR non-compliance are staggering. Fines can reach up to €20 million or 4% of your company's annual turnover, whichever is greater. But that's just the tip of the iceberg. Litigation costs, coupled with the expenses incurred to fix data breaches, can further deplete resources. It is a multi-faceted financial risk that every business should aim to mitigate.
Competitive Advantage
Interestingly, robust data management practices can become a business differentiator. Demonstrating strong data protection protocols not only instils customer trust but can also give you a competitive edge. In a survey by McKinsey, over 37% of respondents indicated they would switch to a competitor with better data protection practices. By investing in top-notch data security, SMEs can stand out in a crowded marketplace.
Global Implications
In a globalised world, SMEs often deal with international clients and suppliers. With GDPR having extraterritorial effects, it means companies in the UK, EU, and EEA are subject to these rules when dealing with EU citizens' data. Non-compliance can thus limit your business's growth and international reach.
Data Protection Takeaways
Data protection is a complex but essential area that SMEs cannot afford to neglect. The risks are multi-dimensional, encompassing financial repercussions, customer trust, and even your competitive stance in the market. That's why at Ilisi Expert Legal Compliance, our comprehensive services help SMEs navigate the complexities of data protection laws across the UK, EU, and EEA, making sure you stay compliant and that your data remains secure.
Ilisi Expert Legal Compliance can assist you in all matters of Data Protection in the UK, EU and EEA. Complete our contact form if you would like more information and a formal proposal in writing. "
