FTSE 100 Companies Could Face Up to £5 Billion a Year in Fines When GDPR Tsunami Hits Our Shores
22 5월 2017 - 8:01AM
Business Wire
FTSE 100 companies could face fines of up to £5 billion a
year if they don’t comply with the EU General Data Protection
Regulation (GDPR), according to analysis by global management
consultancy Oliver Wyman. The EU regulation, which will overhaul
the way companies acquire, retain and use personal data, will come
into effect on 25th May 2018; just 12 months away.
GDPR will allow EU consumers to ask why personal data is
collected, how it is being used and how long it is retained for and
to request that companies erase and stop processing their personal
data, with at least ninety million gigabytes of data being taken
back, estimates Oliver Wyman. It will also allow companies to
‘poach’ data from rivals, if they can obtain customers’
permission.
Most businesses are not fully prepared to deliver this, or to
adapt to the business consequences of losing their data bank. For
serious breaches, firms will have to pay fines of up to four
percent of their global annual turnover, or €20 million, whichever
is the greater.
Had GDPR been in place for the past five years, the
consultancy’s analysis shows that FTSE 100 companies could owe up
to £25 billion in fines to EU regulators.
Chris McMillan, a Partner in the data and technology arm of
Oliver Wyman, said: “In the tug-of-war between companies and
their customers over personal data, GDPR falls firmly in the
consumer’s favour. With fines of up to four percent of global
turnover, or €20 million on the table, non-compliance is simply not
an option.”
Companies must prioritise data security with strong engagement
from the top down. Experienced Chief Data Protection Offices and
Data Engineers, already in short supply, will be in even shorter
supply this time next year.
“As well as meeting the basic requirements, and building a
defensive moat around their data, savvy companies will use GDPR to
their own advantage by ‘poaching’ data from rivals and even players
from outside their industry. With consumer permission, there is
nothing to stop a financial services company, from requesting data
from a technology company or vice versa. Companies that don’t use
GDPR to improve their customer value proposition will be left
behind, and are likely to have their own data pillaged by their
competitors,” added McMillan.
All UK companies will be subject to GDPR until at least March
2019. Post-Brexit, companies dealing with EU citizens will still be
subject to GDPR.
About the research
Oliver Wyman identified FTSE 100 companies, with significant
customer interactions, that have incurred a known data breach in
the past five years. Using 2015 financial reporting figures, Oliver
Wyman applied the fine (four percent of annual global turnover) to
reach the total of £25 billion, or £5 billion per year.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With
offices in 50+ cities across nearly 30 countries, Oliver Wyman
combines deep industry knowledge with specialized expertise in
strategy, operations, risk management, and organization
transformation. The firm has more than 4,500 professionals around
the world who help clients optimize their business, improve their
operations and risk profile, and accelerate their organizational
performance to seize the most attractive opportunities. Oliver
Wyman is a wholly owned subsidiary of Marsh & McLennan
Companies [NYSE:MMC]. For more information, visit
www.oliverwyman.com. Follow Oliver Wyman on Twitter
@OliverWyman.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170521005043/en/
Oliver Wyman:Gregor Ridley, +44 7342
053449Gregor.ridley@oliverwyman.comorLucy Chapple or Millie Daly,
0203 696 5800oliverwyman@standagency.com
Marsh and McLennan Compa... (NYSE:MMC)
과거 데이터 주식 차트
부터 9월(9) 2024 으로 10월(10) 2024
Marsh and McLennan Compa... (NYSE:MMC)
과거 데이터 주식 차트
부터 10월(10) 2023 으로 10월(10) 2024