GDPR: A QUICK OVERVIEW

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1 GDPR: A QUICK OVERVIEW 2018 Get ready now. 29 June 2017

2 Presenters Charles Barley Director, Risk Advisory Services Charles Barley, Jr. is responsible for the delivery of governance, risk and compliance (GRC) services. He has over 15 years of consulting experience and has served several multinational financial services and public sector organizations. Alain Marcuse Director, Risk Advisory Services Alain Marcuse provides security and privacy consulting to clients in a broad spectrum of domains, including security assessments, risk management, penetration testing, compliance frameworks and strategic advisory services. 2 Steven Snaith Partner, Technology Risk Assurance Steven Snaith has 15 years of experience in technology risk audit and has been responsible for a wide range of clients within the private and public sectors.

3 Agenda What is the GDPR? Who does GDPR apply to? Learn from the European experience Develop a road map for compliance 3

4 What is GDPR? European Union General Data Protection Regulation EU GDPR New data protection law adopted by the EU in April 2016, intended to bolster data privacy protections for EU residents. Companies, government agencies, and non-profits interacting with EU residents have until May 2018 to comply. 4

5 Who does GDPR protect? The European Union. Consisting of 28 member states: Spain, UK, Ireland, France, Germany, Italy, and Sweden, among others Some island nations such as the Canary Islands, Azores, and others Organizations storing, transmitting or processing data for individuals residing in any of these countries 5

6 Who does GDPR apply to? To determine if GDPR affects your organization, you need to ask questions such as: Do you offer goods and services to EU residents? Do you rely on third parties that store or transmit data to/from the EU? Do you collect, transmit, or process data pertaining to EU residents? It does not matter whether the services are free It does not matter whether your company operates in the EU 6

7 7 core principles 1. Lawfulness, fairness and transparency 2. Purpose limitation 3. Data minimization 4. Accuracy 5. Storage limitation 6. Integrity and confidentiality 7. Accountability A few implications follow... 7

8 Accountability Organizations must demonstrate privacy protection by design and by default. Must appoint Data Protection Officer (DPO) if the: Organization processes data of more than 5,000 individuals a year OR Is active in regular and systematic monitoring of individuals OR Processes data which is sensitive Sanctions (more on that later) 8

9 Consent Burden of consent now states that: Organizations must now prove genuine, explicit consent for data gathered Consent must be purpose-limited Must allow withdrawal of consent at any time In some instances, consent must be down to business process level In some instances (or countries), must gather consent for individuals as young as age 13 (through their parents) 9

10 Right to be forgotten Mandatory right to erasure organizations must give individuals the right to request erasure of their data if: Individual withdraws consent Data is no longer needed to achieve the purpose it was collected for Data in question was obtained through unlawful processing 10

11 Data portability Individuals have the right to transport all of their personal data to another organization (even a competitor): Organizations must provide individuals with their data in a machine-readable format Where feasible, the organization must facilitate electronic transfer of personal data 11

12 Breach notification Organizations are now under legal obligation to notify local authorities within 72 hours if EU resident data is lost Only exception is if the data was encrypted Organizations have to inform individuals if adverse impact is determined from the breach Service providers (data processors) now have obligations to data controllers 12

13 Penalties for non-compliance If organizations do not comply, they face a maximum fine of: 4% of their global revenue OR 20million whichever is higher 13

14 The European perspective: Evolving legislative landscape 1995 Data Protection Directive General Data Protection Regulation Different rules apply in different countries Organizations had to work with authorities in different countries Only EU companies had to comply Consent for collection and processing of data is assumed Applies only if person can be directly identified from data Directive = need member states to legislate; not automatic enforcement Mostly, a single-set of rules applies across the EU Organisations work with one central authority in chosen country fixed upon their main base Some non-eu companies will have to comply if offering services to EU residents Consent for collection and processing of data must be explicitly given Applies if person can be indirectly identified Regulation = immediately enforceable across all member states as national law 14

15 European perspective key issues we are seeing Carry out an information audit (data held how long for, why, where, how is it shared, and is it still needed) and data flow mapping exercise Update all policies and procedures to reflect changes Update or create information asset register Form a data governance group Implement / review breach notification procedures and incident management plans Review impact of data retention e.g. on archiving Review IT development and purchase procedures privacy by design Consider the position of the existing DPO within the management structure Consider and record lawful bases for processing Service provider / thirdparty contracts are changes required to current agreements with data processors Check accountability in this area is clear and precise Check how consent is obtained? Are changes to this process required? Retain records of consent 15

16 Roadmap: How do I manage the GDPR puzzle? 16

17 How should I think about data privacy? Privacy is a business issue Privacy is enabled by information security Privacy is more than a compliance activity

18 What tactical items should I consider? To understand the risk associated with data protection, organizations must first begin by agreeing that data privacy is a multi-faceted business issue regarding the collection, use and disclosure of personally identifiable information. Tactical considerations People Process Technology Who are the key process and control owners and what are their organizational roles? What information flows from one person to another? How are people trained to maintain adequately execute within the processes? What processes govern the flow of information? Do processes govern the disclosure of data to third parties? Has the organization established a data privacy impact assessment program? Which internal and external systems maintain personal information? Has the organization deployed a data loss prevention solution? Has the organization developed a data consent mechanism? Governance Privacy officer Privacy policies Awareness program Administration Privacy risk assessments Data protection framework Data erasure Management Data protection requirements Incident response plan 72hr breach notification

19 How do I get my house in order? Privacy is a business issue Identify Diagnose Implement Conduct an enterprise privacy assessment Develop a data inventory Identify the flow of data (e.g., systems) Categorize the location and storage of data Review the information protection framework (e.g., policies, procedures, etc.) Analyze the organization s data retention strategy Review the third party data sharing practices Assess the vendor management posture Implement a governance structure and privacy officer Design / enhance privacy policies and information handling procedures Develop a process / mechanism to obtain and manage consent Implement a data breach notification and incident response program Establish an ongoing data privacy impact assessment program Launch a privacy awareness and training program

20 Wrap-up While GDPR represents an important step forward for individual privacy rights, it will require potentially vast changes and significant investments by organizations around the world to comply RSM s IT privacy methodology can be leveraged to assess those gaps and provide guidance on the GDPR roadmap 20

21 RSM US LLP 1861 International Drive, Suite 400 McLean, VA This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. This document does not constitute audit, tax, consulting, business, financial, investment, legal or other professional advice, and you should consult a qualified professional advisor before taking any action based on the information herein. RSM US LLP, its affiliates and related entities are not responsible for any loss resulting from or relating to reliance on this document by any person. Internal Revenue Service rules require us to inform you that this communication may be deemed a solicitation to provide tax services. This communication is being sent to individuals who have subscribed to receive it or who we believe would have an interest in the topics discussed. RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent audit, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/aboutus for more information regarding RSM US LLP and RSM International. RSM and the RSM logo are registered trademarks of RSM International Association. The power of being understood is a registered trademark of RSM US LLP RSM US LLP. All Rights Reserved.

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