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What Is a Data Protection Audit and Do You Need One?

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Posted in: Commercial solutions
Date published: 23/05/2022

Data protection can be complicated, but getting it wrong can have serious consequences for your business. The additional complications and sanctions as a result of GDPR, means that many businesses worry about their data protection procedures and processes, but a data protection audit can help. Typically, our team helps small to medium sized businesses to understand their data protection structure and identify gaps which could lead to data breaches. We understand the practical, technical and legal challenges you may be facing, but we can help. In this article we explain more about what a data protection audit is, and how it can help your business.

What is a data protection audit?

Basically, a data production audit is the process of auditing all of your data protection processes and procedures to understand your current levels of compliance and identify any areas for improvement. This will include any information your business holds about employees and staff, your clients and customers, suppliers, prospective purchasers and suppliers and even any individual contacts within your network.

What happens after a data protection audit?

After a data protection audit, your solicitor will provide you with a comprehensive plan for compliance with data protection laws. We can also help you to draft GDPR compliant contracts, employment contracts and any other commercial agreements which include sensitive data.

What are the benefits of a data protection audit?

The key driver for most businesses is the consequences of a potential breach. The rules are contained in the EU General Data Protection Regulation (GDPR) and the UK Data Protection Act (DPA). Fines for failing to meet your obligations can be substantial –  up to €20 million or four per cent of your worldwide annual turnover, whichever is higher. However, a data protection audit can help in several ways.

A data protection audit can help your business to demonstrate compliance with GDPR

GDPR dictates that if your business controls or processes data, you must be able to demonstrate compliance on an ongoing basis. Conducting a data protection audit shows that you take your obligations seriously, and that you are taking steps to identify and remedy any potential breaches. Where weaknesses are identified in the audit, our solicitors can provide you with a plan to remedy these issues.

Rely on the data protection expertise of a solicitor

Using a team of solicitors to perform a data protection audit  of your business allows you to take advantage of their expertise and understanding of the law. While you may stay on top of data protection, an experienced third party can efficiently and effectively identify issues and recommend valuable and practical alterations to your practices.

Manage your data more effectively

While having comprehensive data on your clients, customers, employees and suppliers is important – there is such a thing as too much information. A full data protection audit can help you to identify where your business is holding on to ‘dead weight’ allowing you to make the most of real opportunities. A data protection audit can help you to find unnecessary data and dispose of it in accordance with your data retention policy. You may also use this information to update and improve your data retention policy and practices.

Improve employee awareness

While having the right process and procedures for data management in place is essential, the people who process and control the information must fully understand their obligations. In addition, everyone in your business should have a good understanding of the importance of data protection and be aware of GDPR to fully understand the impact it has on your organisation. Carrying out regular data audits as well as staff training can help to create a culture of data protection compliance in your organisation, which can dramatically reduce the risk of a data breach.

Contact IMD Solicitors – Data Protection Lawyers

We understand that no two businesses are the same and that the advice we give must be tailored to your personal needs, wants and ambitions. That is why when you come to use for data protection advice you will not receive a generic recital of the law, but a bespoke action plan on the steps you need to take to be GDPR and DPA compliant while still ensuring you can access the data you need. To discuss your requirements, call us today on 0330 107 0106.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.

Published by:

Marcin DurlakManaging Partner

Business Services – IMD Corporate

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