Over half of firms listed in the FTSE 350 and Fortune 500 are not preparing themselves in time for imminent General Data Protection Regulation (GDPR).
That is according to new research by law firm Paul Hastings, which reveals only 43% are setting up an internal GDPR taskforce, while just one-third are hiring a third-party to conduct a regulation gap analysis or give advice.
This is despite 94% of FTSE firms believing they are on track to implement GDPR, with the number rising to 98% among Fortune companies – suggesting they are significantly underestimating the technicalities of compliance.
“The confidence among major corporations seems mismatched with reports of their implementation efforts,” Paul Hastings global co-chair of privacy and cybersecurity practice, Behnam Dayanim, said.
“Achieving GDPR compliance is an enormous task – one that in our experience, almost inevitably requires dedicated resources and budget.”
The regulation comes into force in May this year, and is designed to harmonise data privacy laws across Europe, giving extra protection to citizens’ data privacy, and applies to all firms that do business inside the EU.
Breaches can hit institutions with fines of up to 2% of their previous year’s global annual revenues for a first offence, and 4% for repeat offences, while criminal penalties are also possible.
The Paul Hastings research involved a survey of 100 general counsel or chief security officers from FTSE 350 companies, and 100 from Fortune 500 firms, in July 2017.
Despite being one of the crucial requirements for “business involved in the large scale monitoring of individuals”, it was found that just 29% of FTSE firms have hired a data privacy officer or additional privacy staff.
This number is even lower among the Fortune companies, while it was also found that just 10% of UK firms have an allocated budget for GDPR compliance.
“With so few companies undertaking key compliance measures to date, it will be a race to the finish line for those needing to meet the terms of this wide-reaching regulation,” Dayanim continued.
“This unfortunately seems to be setting up a scenario for multiple investigations and enforcement activities once the implementation date arrives.”
Financial services companies are looking to digital transformation at a greater rate than most vertical market businesses, and are facing an “acute shortage” of skills as a consequence.
08 February 2019
Cyber attacks could cost businesses as much as $5.2trn (£4trn) in additional costs and lost revenue over the next five years.
28 January 2019
Blockchain and cryptocurrency developers benefited from record levels of investment in the UK last year.
09 January 2019
Why InsurTech? A Pressured Insurance Value Chain
By Andrew Sagon, Andrew Johnston and Matthew Wong
InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.
Nimbleness and agility will unlock potential
By Elinor Friedman, Andrew Harley and Klayton Southwood
Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.
Driven by technology, toolkits and talent
By Claudine Modlin and Graham Wright
Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.
Risk transfer is part of a comprehensive solution
By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood
Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.