The number of data breaches is getting higher each year, and the cost of SaaS GDPR non-compliance could be a huge fine. If you are a SaaS startup looking to expand your business globally or are currently an international company with customers in the EU, this regulation will affect you.
The cost of SaaS GDPR non-compliance
Fines for not complying with the GDPR can be up to 4% of a company’s global annual revenue or €20 million, and this could be crippling for many businesses. In addition to fines, companies that don’t comply with the GDPR could also face lawsuits from customers who have had their data compromised.
If fines are not enough, according to the annual IBM Data Breach Report, in 2021 a data breach costed $4.24 million per incident on average, which can be even more detrimental to a business than a GDPR fine.
Mistakes that could put your SaaS in GDPR compliance hot water
There are a number of mistakes that companies can make when it comes to the GDPR. Here are a few of the most common ones:
Not investing in data protection procedures
One of the biggest mistakes companies make is not investing in a governance framework. This can include hiring a data privacy officer, setting up policies and procedures, and training employees on how to handle personal data
2. Ignoring Privacy By Design
Another common mistake that companies make is to not invest in Privacy by Design, which is embed the privacy principles in your product from the outset
3. Not having a retention schedule
Not deleting personal data when it is no longer needed is a mistake most companies make. Under the GDPR, you must delete personal data when it is no longer necessary for the purpose an organization originally collected or processed it.
Privacy tips for protecting your saas data
There are a number of steps you can take to ensure that your SaaS is compliant with the GDPR. In this article, we will discuss some of the most important ones.
Educate Your Employees About GDPR
You need to teach your employees about the GDPR. This is a law that tells companies how they need to protect people’s information. If you don’t follow this law, you could get in trouble and have to pay a lot of money.
Check our 7 Tips for a Successful GDPR Training article to help you create internal staff awareness.
Review Your Data Retention Policies
One of the requirements of the GDPR is that you must delete personal data when it is no longer needed. You need to have a data retention policy in place and also review your data retention schedules to make sure that you are deleting data when it is no longer needed. You also need to make sure that you are not keeping any unnecessary personal data.
Implement Strong Authentication Procedures
One of the ways that you can protect people’s data is by implementing strong authentication procedures. This means that you need to use a strong password and two-factor authentication to make sure that only authorized employees can access personally identifiable data.
Secure Your Servers
You also need to secure your servers to make sure that hackers can’t access personally identifiable data. You should use firewalls and anti-virus software to protect your servers. You should also keep your software up to date.
Enforce Data Security Policies
You need to enforce data security policies to make sure that employees are following the rules about how they need to protect people’s data. You can do this by implementing a routine training of GDPR principles, rights and responsabilities.
Appoint a Data Protection Officer
If your company has more than 250 employees, you must appoint a Data Protection Officer (DPO). Even if not, a data protection officer can be of greater importance to keep monitoring and updating your privacy compliance program.
You can learn more about the benefits of an outsourced data protection officer here.
When it comes to SaaS GDPR compliance, companies can commit many mistakes with the hadleling of their data but there are also ways to protect themselves against these risks by educating employees about gdpr compliance guidelines among other steps like securing servers and enforcing new policies within your organization.