A majority (54pc) of UK businesses expect a data breach in the next 12 months, while near half, 48 per cent of respondents agree that their business is financially prepared to cover the European Union General Data Protection Regulation (EU GDPR) fines after the deadline of May 2018. That’s according to a GDPR study, carried out among 1,500 IT decision makers across businesses in the UK, France, and Germany, for Proofpoint, Inc, a cybersecurity and compliance company. The firm points to a disconnect between perception and reality when it comes to GDPR readiness. Whilst most UK businesses (77pc) believe they will be fully compliant by May, only five per cent have all the necessary data governance strategies in place to be compliant.
Adenike Cosgrove, EMEA Cybersecurity Strategist, Proofpoint says: “It’s clear that when it comes to GDPR readiness, there is a disconnect. While the majority of UK businesses are bullish about their ability to meet the compliance deadline, our research shows that for many, the basic requirements are not met. With data breaches becoming the new normal and the deadline to comply now less than six months away, the time is now to identify and protect all personal EU data. Failure to do so could lead to financially-significant fines, broken customer trust and in turn, potentially crippling disruption to the business.”
Along with high-profile global cyberattacks, the research highlights that data breaches are significantly on the rise. More than a third (36pc) of UK businesses suffered a data breach in the last two years and nearly a quarter (23pc) suffered a data breach multiple times in the past 24 months.
Looking ahead
France seems to have a heightened awareness of this new rule, compared to its European counterparts. Most, 78 per cent of French IT decision makers think their business is likely to suffer a data breach, with German respondents (46pc) believing that they are the least likely to experience an EU personal data breach. Some 65 percent of IT decision makers in the UK are seeing increased IT security investments to help bolster their cyber defences and comply with GDPR ahead of the deadline.
Also, almost a quarter (24pc) have even purchased cyber insurance, implying that while reactive measures are in place, these organisations fear their strategies are not sufficient enough to comply with GDPR in time. Cyber insurance can help cushion the cost of a breach, however many insurance policies will not cover fines for non-compliance, according to Proofpoint.
The research also found a disparity around which methods are being prioritised to ensure GDPR deadline compliance. More than half (56pc) of respondents have a user awareness programme on data protection, 46 per cent have encryption for all personal EU data, and 49 per cent have advanced security solutions to prevent data breaches. Only half of respondents (50pc) know (and have documented) what personal EU data their organisations hold. The IT product firm suggests that some businesses recognise the importance of GDPR compliance, yet are still at a significant risk of non-compliance to the regulation because they cannot discover where EU personal data sits.
Cosgrove adds: “Despite having two years to comply, UK businesses are still at a critical risk of exposing data and facing potentially colossal fines as a result. Over the next six months, organisations must invest in solutions that will enable them to have clearer visibility over EU personal data, solutions that prevent breaches of identified data, as well as implement solutions that enable them to monitor, detect, and respond to any regulatory violations.”
To download ‘The Great GDPR Disconnect’ report, visit: https://www.proofpoint.com/uk/resources/white-papers/gdpr-readiness.
