12 Proven Steps to Nail GDPR Compliance: A Must-Have Checklist
12 Steps to GDPR!
In today’s digital world, the applications we use daily gather vast amounts of data through embedded trackers.
While this data can enhance user experience, it poses significant risks if misused, potentially leading to privacy breaches and cyber attacks.
Salesforce reports that 60% of its customers feel powerless over how their data is managed.
To address these concerns and safeguard user privacy, the European Union introduced the General Data Protection Regulation (GDPR) on May 25, 2018.
This regulation aims to modernize data privacy and security standards for EU citizens, imposing compliance requirements on both cloud-hosted companies (processors) and their clients (data controllers).
If you’re managing a growing cloud-hosted company and wondering whether GDPR applies to you, you’re in the right place.
We’ve created a comprehensive GDPR compliance checklist to guide you through the necessary steps to ensure your operations meet these crucial regulations and enhance customer and organizational security.
Understanding GDPR Applicability
The General Data Protection Regulation (GDPR) extends its reach to any organization that collects, processes or manages the personal data of individuals residing in the European Union.
This regulation is not confined to businesses operating solely within the EU; it also applies to companies based outside the EU if they handle data from EU citizens.
This broad scope ensures that organizations worldwide adhere to stringent data protection standards when dealing with personal information from the EU.
Data Controllers and Their Rights
Under GDPR, individuals whose personal data is collected are called data controllers.
Data controllers have significant authority and responsibility over how their personal information is handled.
They are entitled to determine the purposes for which their data is collected and how it is used, stored, and safeguarded.
This includes the right to access their data, request corrections, and demand deletion if necessary.
Data controllers must ensure that their data is protected according to GDPR guidelines, establishing clear protocols for data management and security.
Data Processors and Their Obligations
Organizations that process the data collected by data controllers are known as data processors. These processors play a crucial role in the data handling chain and are required to comply with the data controllers’ instructions regarding data usage.
GDPR mandates that data processors adhere to specific regulations to ensure data protection and privacy.
This includes implementing appropriate security measures to prevent data breaches and ensuring that all data processing activities are conducted by GDPR standards.
Data processors must also be prepared to demonstrate their compliance with GDPR requirements and assist data controllers in fulfilling their obligations under the regulation.
Compliance Responsibilities for Both Roles
Both data controllers and data processors have distinct yet interconnected responsibilities under GDPR.
Data controllers are responsible for establishing and enforcing data protection policies and practices, ensuring that their data management processes align with GDPR requirements.
Meanwhile, data processors must follow these policies, ensuring that their data processing operations meet the necessary legal standards.
Together, data controllers and data processors must work in tandem to ensure that personal data is handled with the utmost care and in full compliance with GDPR.
Why Compliance with GDPR is Essential
The General Data Protection Regulation (GDPR) represents a comprehensive framework established by the European Commission to safeguard the privacy and security of personal data for EU citizens.
This regulation empowers individuals with greater control over their personal information and imposes strict limitations on how organizations can collect, use, and store this data.
For cloud-hosted companies processing personal data from EU citizens, adhering to GDPR is not just a best practice — it’s a legal requirement.
This regulation extends beyond EU borders, meaning that even organizations based outside the EU must comply if they handle data from EU residents.
Additionally, GDPR governs the transfer of personal data across international boundaries, ensuring that data protection standards are upheld regardless of where the data is processed or stored.
The Consequences of Non-Compliance with GDPR
Failing to comply with the General Data Protection Regulation (GDPR) can lead to severe financial repercussions, with penalties ranging from €10 million to €20 million or up to 4% of your company’s annual global turnover.
In addition to these hefty fines, your organization could face scrutiny from EU regulators and potential lawsuits.
Beyond the financial impact, non-compliance can significantly damage your company’s reputation.
In an era where public concern about data privacy is on the rise, failing to protect personal information can undermine trust in your brand.
Adhering to GDPR not only helps avoid these penalties but also enhances your company’s image as a reliable and professional entity.
By implementing robust data protection measures, you reduce the risk of data breaches and demonstrate a commitment to safeguarding customer information.
12 Essential Steps for GDPR Compliance
The General Data Protection Regulation (GDPR) outlines key principles for data processors, emphasizing lawful data handling, transparency, and robust security practices.
It also stresses the importance of assigning accountability and governance while respecting the privacy rights of individuals.
To ensure compliance, businesses should follow a comprehensive GDPR checklist that incorporates these principles.
This checklist should outline specific processes and controls, providing clear guidelines for any organization involved in data collection.
Adhering to this checklist will help businesses assess their current compliance status and identify areas for improvement, ensuring they meet GDPR requirements effectively.
1. Raising Awareness and Ensuring GDPR Compliance
Achieving GDPR compliance is not just the responsibility of top management or the Data Protection Officer (DPO); it requires a company-wide commitment.
For a cloud-hosted company, this means taking a holistic approach to compliance that involves every employee, regardless of their role.
GDPR compliance isn’t just about adhering to regulations — it’s about embedding a culture of data protection and security within the organization.
Start by raising awareness about GDPR and its implications across all levels of your company.
Conduct regular training sessions to educate employees on the importance of data protection, the potential risks of non-compliance, and their role in safeguarding customer data.
This training should emphasize the need for vigilance and the shared responsibility of maintaining compliance. In addition to training, identify areas within your company that could lead to non-compliance.
This involves reviewing your risk register, assessing your data handling practices, and ensuring that physical security measures are in place for devices both within the office and those that employees carry with them.
It’s also crucial to control employee access to sensitive data. By limiting access, you reduce the number of potential exit points, making your data more secure.
Another critical aspect is evaluating your third-party suppliers and subcontractors. GDPR compliance extends to all parties involved in data processing, so if your partners aren’t compliant, neither are you.
Engage with these partners to ensure they meet GDPR standards. If they don’t, request that they take the necessary steps toward compliance, or consider finding new partners who are already compliant.
Formal data processing agreements should be established with all third-party suppliers to guarantee full compliance; verbal agreements or informal understandings are not sufficient under GDPR.
2. Documenting and Managing Data Processing Flows
One of the core principles of GDPR is accountability, which requires organizations to be transparent about how they handle personal data. To meet this requirement, your company must maintain detailed records of all data processing activities.
Understanding how customer data flows in and out of your organization is crucial for ensuring compliance and being able to demonstrate that compliance to regulators if necessary.
Start by mapping out the data processing flows within your company. Identify each department and document the types of personal data they handle, how that data is processed, and who is responsible for processing it.
For example, your marketing department might collect and store customer email addresses for newsletters, while your sales team may process contact information to manage leads.
Understanding these data flows helps ensure that each department complies with GDPR and follows the correct procedures for handling personal information.
Once you have mapped out these data flows, compile the information into a coherent, easily accessible document. This document should include:
- A detailed list of all departments involved in data processing.
- The specific types of personal data are handled by each department.
- The processing activities are carried out within each department.
- The individuals are responsible for managing data in each department.
It’s essential to regularly update this document to reflect any changes in data handling practices, such as the introduction of new software, changes in personnel, or updates to data processing procedures.
Keeping this document up-to-date not only ensures compliance but also helps your company quickly identify and address any potential data protection issues.
In cases where incorrect personal data has been shared with another company, GDPR requires that you notify the affected company so they can correct their records.
This step is crucial in maintaining the integrity of personal data and demonstrates your company’s commitment to GDPR’s principles of accuracy and accountability.
By taking these steps — raising awareness, securing data, ensuring third-party compliance, and meticulously documenting data processing flows — your cloud-hosted company can build a robust foundation for GDPR compliance, reduce the risk of penalties, and establish itself as a trusted and responsible custodian of personal data.
3. Update and Review Your Privacy Notices
With the introduction of the GDPR, organizations must provide more comprehensive and transparent information to individuals about how their data is handled.
Previously, you only needed to inform individuals about your identity and the general purpose of data collection. However, the GDPR requires you to go further, updating your privacy policy to address additional details in clear, straightforward language.
Your updated privacy policy should now include:
- How you collect personal data: Be transparent about the methods you use to gather data, whether it’s through forms, cookies, or other means.
- Why you collect personal data: Clearly explain the lawful basis for collecting the data, whether it’s for contract fulfillment, legal obligations, or consent.
- How you intend to use the data: Specify the purposes for which the data will be processed, such as marketing, analytics, or customer support.
- Duration of data retention: Inform individuals how long their data will be stored, and ensure this period aligns with the principles of data minimization and storage limitation.
- Users’ rights: Outline the rights individuals have regarding their data, including the right to access, correct, or delete their information, and their right to file a complaint with the ICO if they believe their data is mishandled.
Additionally, it’s essential to create a comprehensive cookie policy. This policy should clearly state which cookies are active on your website, their purpose, and how users can manage them. Using automated cookie tools can help you audit your site and keep your cookie policy current.
4. Ensure Compliance with Individual Rights
Beyond updating privacy notices, the GDPR strengthens individuals’ rights concerning their data.
It’s crucial to review your existing privacy and data protection procedures to ensure they fully address these enhanced rights.
Your policies should clearly explain how your organization will manage requests to delete personal data, provide data electronically in a commonly used format, or correct any inaccuracies — all free of charge.
Additionally, your procedures should detail how you will handle requests to prevent direct marketing or automated decision-making and profiling.
For instance, if an individual requests that their data be deleted, your company must be prepared to respond promptly.
This means having systems in place that allow you to locate and erase the data efficiently.
It’s also important to designate someone within your organization who will make these critical data-related decisions.
By proactively updating your privacy notices and refining your procedures to respect individuals’ rights, your organization not only stays compliant with GDPR but also builds trust with your customers.
5. Enhancing Procedures for Subject Access Requests (SARs) Compliance
To ensure your organization efficiently manages Subject Access Requests (SARs) by updated regulations, it’s essential to review and refine your existing procedures.
The new rules introduce several significant changes that necessitate adjustments in how you handle these requests.
One major change is the removal of fees for processing SARs. This update underscores the importance of accessibility and transparency, allowing individuals to exercise their rights without financial barriers.
Additionally, the time frame for responding to SARs has been reduced from 40 days to just one month. This requires a streamlined process to ensure compliance with the new deadline.
There is also now an option to refuse requests that are deemed excessive or baseless. This response should be provided promptly, within the one-month timeframe.
When refusing such requests, you must provide a clear explanation and inform the individual of their right to complain to the supervisory authority and pursue legal action.
It is crucial to evaluate whether your organization can handle a high volume of SARs within the new timescales, especially if you operate on a larger scale.
Consider if your current systems are capable of delivering additional information, such as data retention periods and correcting inaccuracies, within the required timeframe.
To implement these changes effectively, start by developing GDPR-compliant response templates. These templates will help ensure that each SAR is addressed appropriately and in line with the new regulations.
Update your SAR policies and procedures to incorporate the enhanced rights of individuals, the revised response times, and the removal of fees. Ensure that these updates are reflected in your procedures to maintain compliance.
Additionally, it is important to enhance your technical procedures to process personal data quickly and in the appropriate format. This includes optimizing your systems to manage requests efficiently.
Establish new policies to promptly correct data inaccuracies and procedures to halt processing where necessary. These measures will help you maintain data integrity and adhere to GDPR standards.
By revising your procedures and taking these practical steps, you can effectively manage SARs and ensure that your organization complies with the latest regulatory requirements.
6. Identifying and Documenting the Legal Basis for Data Processing
To ensure compliance with GDPR, it is crucial for cloud-hosted companies to thoroughly review and document their data processing activities.
Start by determining the lawful basis for processing personal data. This involves identifying and recording the specific grounds under which you are processing data, such as consent, contractual necessity, or legitimate interests.
Once you have established and documented the legal basis for your data processing, update your privacy notice to reflect these details. This transparency is essential not only for compliance but also for building trust with your users.
Additionally, when responding to Subject Access Requests (SARs), you will need to provide a clear explanation of the lawful basis for your data processing activities.
Understanding the lawful basis is fundamental under GDPR because it influences the rights individuals have concerning their data.
For instance, if consent is the basis for processing, individuals will have a stronger right to request the deletion of their data.
This ensures that your practices align with GDPR requirements and that individuals’ rights are respected accordingly.
7. Revamping Your Consent Mechanisms
In line with GDPR requirements, cloud-hosted companies must ensure that their cookie consent banners are updated to meet new standards.
This means revising your banners to present information in clear, straightforward language that is both concise and specific.
Your cookie consent banner should include an easy-to-use opt-out option for users who choose not to grant consent. To streamline this process, consider using automated cookie management software that can generate tailored consent options for users.
Additionally, it is important to review all existing methods of obtaining consent to ensure they comply with GDPR standards. If your current consent practices are not up to date, seek fresh consent from users to align with the latest regulations. This approach will help maintain transparency and user control over their data.
8. Safeguarding Children’s Data
Ensure that your cloud-hosted company has appropriate measures in place to protect the personal data of children.
This involves implementing systems to verify the age of individuals and securing consent from parents or guardians when collecting data from minors.
Under GDPR, special protections are afforded to children, recognizing their vulnerability in online environments such as social networking platforms.
If your company offers “information society services” to children, you are required to obtain consent from a parent or guardian for any data collection.
This consent must be verifiable and communicated in a way that is easily understandable for both children and their guardians.
For children under 16 years old (or under 13 years old in the United Kingdom), the consent must come from someone with “parental responsibility.”
Implementing these measures ensures compliance with GDPR and helps safeguard the privacy and security of young users.
9. Managing Data Breaches: Detection, Reporting, and Investigation
Establish robust procedures for detecting, reporting, and investigating personal data breaches within your cloud-hosted company.
Begin by conducting a thorough GDPR assessment to understand the types of data you hold and identify which data categories require notification in the event of a breach.
Under GDPR, all cloud-hosted companies are obligated to report specific data breaches to the Information Commissioner’s Office (ICO) and, in some cases, directly to affected individuals.
For instance, if a breach poses a significant risk to individuals’ rights and freedoms — such as financial loss, reputational damage, loss of confidentiality, or discrimination — you must notify the relevant supervisory authority within 72 hours of discovering the breach.
Moreover, if the breach presents a high risk to individuals’ rights and freedoms, you are also required to inform those affected without undue delay.
Implementing these procedures will help ensure timely and compliant responses to data breaches, protecting both your organization and the individuals whose data you manage.
10. Embracing a Privacy and Data Protection Approach
For cloud-hosted companies, adopting a “privacy by design” philosophy is essential.
This involves integrating privacy considerations into the design and operation of your systems from the outset.
Start by conducting Data Protection Impact Assessments (DPIAs) in scenarios that present high risks, such as when deploying new technologies or engaging in activities that could significantly affect users, like profiling.
These assessments help identify potential privacy risks and guide the implementation of measures to mitigate them.
Utilize pseudonymization or anonymization techniques to enhance data security, as these methods are recommended by GDPR.
Additionally, make sure to regularly delete data that is no longer needed or relevant, including obsolete information from backups, to minimize the volume of data that requires protection.
Ensure your data centers are located in regions known for strong data security standards, such as the US or Europe.
Implement robust IT security measures, including double authentication for employee access and TLS/SSL certificates for secure communications. Encrypt system passwords and secure any personal devices employees use for work.
Regularly conduct vulnerability scans on your devices, systems, and networks to identify and address potential security weaknesses. Adopting these practices will help ensure that your organization maintains a strong focus on privacy and data protection.
11. Designating a Data Protection Officer (DPO)
Cloud-hosted companies need to appoint a data protection officer(DPO) to oversee data protection compliance.
This role should be clearly defined within your organizational structure and governance framework. Evaluate whether a formal appointment of a DPO is necessary based on your company’s activities.
According to GDPR, a DPO must be designated in certain circumstances, including when your organization is a public authority, engages in regular and systematic monitoring of substantial amounts of data, or processes special categories of data, such as health records or data on criminal convictions, on a large scale.
These criteria are particularly relevant for many cloud-hosted companies, given their extensive data processing and monitoring activities.
The Article 29 Working Party guides the appointment, responsibilities, and positioning of the DPO.
If your company meets the criteria, you should appoint a DPO, either as an internal staff member or an external consultant, to ensure compliance with GDPR.
If the DPO is appointed internally, they may require training to fully understand GDPR requirements and their responsibilities in the role.
Properly designating and equipping your DPO is crucial for maintaining robust data protection practices and ensuring regulatory compliance.
12. Selecting Your Lead Data Protection Authority
For cloud-hosted companies operating across multiple EU member states, or those with a single EU establishment affecting data processing in various member states, it is crucial to designate a lead data protection supervisory authority.
This choice should be documented and aligned with the guidelines provided by the Article 29 Working Party.
To determine your “main establishment,” map out where your company makes its most significant decisions regarding data processing.
The supervisory authority in this location will act as your lead authority, overseeing compliance and regulatory matters.
If your company is based outside the EU but offers services to or monitors the behavior of EU citizens, you must also adhere to GDPR requirements.
Ensuring you have a clear lead authority will help streamline compliance efforts and manage data protection responsibilities effectively.
Designating Your Primary Data Protection Authority
For cloud-hosted companies operating in several EU member states or with a primary EU establishment that impacts data processing across multiple states, it is essential to designate a primary data protection supervisory authority. Document this selection by the guidelines from the Article 29 Working Party.
To identify your “main establishment,” assess where your company makes its key decisions about data processing activities.
The supervisory authority in this primary location will serve as your lead authority, responsible for overseeing compliance and addressing regulatory issues.
For companies based outside the EU, compliance with GDPR is also required if you offer services to EU citizens or monitor their behavior within the EU.
Appointing a lead authority will facilitate smoother compliance and help effectively manage your data protection obligations.
Conclusion
The GDPR is one of the strictest privacy regulations globally, encompassing 99 Articles and 88 pages. To simplify compliance, use our data protection checklist.
Ensure adherence if your cloud-hosted company operates in or targets European customers to avoid severe penalties and damage to your reputation.
After completing the checklist, conduct an audit with Sprinto for streamlined compliance. Sprint provides a framework-specific health report and an automatic evidence collection system for auditors.
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