The General Data Protection Regulation (GDPR) was approved in May 2018 to strengthen citizens' privacy in the face of the increasing use of personal data in various processes.
This regulation has numerous implications for any company that, in any of its processes, accesses or processes personal data in any way. In a context where data has become one of the most important assets for business success, this means that practically all companies must consider the GDPR in one way or another.
But what implications does the GDPR have in a software development context, and how can GDPR software tools help manage these processes? While the impact on businesses is significant, the regulation also presents an opportunity to improve data protection practices and build customer trust. Here's how.
What is the General Data Protection Regulation?
The General Data Protection Regulation (GDPR) is a law approved by and applicable within the European Union, aimed at protecting the personal data of European citizens.
In effect since May 25, 2018, and adapted to Spanish legislation through the Personal Data Protection Law, it establishes a series of requirements for companies and organizations that process personal data of EU citizens.
Some of the obligations for companies under the GDPR include:
- Obtaining explicit consent from citizens for the processing of their personal data.
- Obligation to inform individuals about the use of their personal data.
- The right of individuals to access, rectify, and delete their personal data, including the right to be forgotten.
- Obligation to notify authorities and affected individuals in the event of a data breach.
In essence, the GDPR sets requirements for all stages of data handling (collection, use, and security) and mandates the establishment of default or by-design security protocols to ensure data protection and the right to erasure in information systems.
Software Development within the Framework of the General Data Protection Regulation
To understand the implications of the GDPR in software development, one must start with the requirement mentioned above: data must be protected by design, both in production and non-production environments.
In other words, in software development, companies must consider data security from the outset (design or development phase) of any of their operations.
This means companies need to think about:
- How they will test applications during development.
- How they will manage the software deployment concerning data.
- What type of migration processes will be carried out to ensure security (if replacing an existing application).
- How that migration will be tested.
- How to test the maintenance and evolution of the software.
- What tools will be used to support the fulfillment of individuals' rights under ARCO (Access, Rectification, Cancellation, and Opposition) as stipulated by the GDPR.
What is GDPR Software?
GDPR software arises in the context of these mentioned obligations. These are tools designed to help companies comply with the requirements set by the GDPR.
Functions of this type of software include processing, storing, and protecting personal data following GDPR guidelines and in an automated manner.
Solutions Provided by GDPR Software
Solutions provided by GDPR software include:
- Facilitates companies in complying with ARCO rights. It's important to note that not all GDPR software tools execute these rights (some only manage them). However, tools like icaria GDPR facilitate their execution.
- Manages data in accordance with the GDPR. This includes actions such as data extraction, storage, dissociation, restoration, and deletion. This process is known as "seed management" or the data structure of a data subject. It automates operations like the blocking period (data extraction, repository storage, and data access only in legally permitted cases); it also handles the deletion of information in the blocking repository at the appropriate time and in accordance with the law.
- Initiates anonymization processes. Anonymization is an effective strategy for complying with GDPR requirements while leveraging the potential of data for businesses. GDPR software allows the application of masking techniques, replacing sensitive information with synonyms or pseudonyms, or suppressing these parts.
- Identifies the impact of security breaches: analysis of affected individuals and which of their data has been compromised.
How Can the General Data Protection Regulation Affect Companies?
As mentioned above, the GDPR establishes a series of obligations for companies. If not complied with, there are at least two significant consequences:
- Fines: Non-compliance with GDPR rules results in fines imposed by data protection authorities of each nation, which can be substantial. The regulation states that these fines can reach up to 4% of a company's annual global turnover or 20 million euros (whichever is higher).
- Reputation Impact: Beyond fines, non-compliance with the GDPR can damage a company's reputation and the trust customers place in it. Whether due to a fine or a data breach, the impact on a company's reputation and corporate image can be significant.
Do you want to learn more about the GDPR and the role of GDPR software in meeting legal requirements? At icaria Technology, we can help. Check out our icaria GDPR software or contact us to speak directly with our team.