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Audit, tax and consulting firm RSM has advised firms to complete relevant preparations to avoid risks arising from non-compliance once the GDPR comes into force on 25 May 2018.
The new legal framework will transform how companies store and manage personal data. Failure to comply with the new rules could see them face significant penalties of up to €20 million (£17,372,800) or 4% of annual global turnover.
As the biggest change to data privacy legislation in over two decades, the scheme aims to protect EU citizen's personal data, regardless of borders or where the data is processed.
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RSM said an organised data protection programme will need to be established to ensure a company’s data processes protect the rights of individuals. This obligation extends to any third-party contractors or partners working with a business, and will present construction companies with much greater legal liability in the event of error.
In addition, sufficient GDPR protocols such as clear data sharing agreements must be established when concerning Joint Ventures, as uncertainty could be raised around who is responsible for managing and protecting stored and shared consumer data.
Steve Snaith, technology risk assurance (TRA) partner at RSM, said: "In a growing digital economy, where data can be collected and stored within seconds, there is more risk of cyber security breaches, which was highlighted by the recent WannaCry ransomware attack. Therefore it's increasingly important to make sure clear processes and safeguards are put in place to protect both clients and companies.
"Although GDPR is a welcome attempt to curb growing fears around how companies use and manage personal information, the new framework will drastically affect the future of stored personal data and increase company accountability. Construction businesses must make sure they are ready for what lies ahead and not get caught out, as the financial and reputational risk could be significant."
(LM)
