Data Compliance Governance

Following the General Data Protection Regulation (GDPR) in 2016 and the Data Governance Act (DGA) in 2022, the European legislature has set a further regulatory milestone with the Data Act (DA) early 2024. The Artificial Intelligence Act (AIA) already approved by the European Parliament will soon further complement the regulation of data and artificial intelligence within the European Union. In total, a series of directly applicable regulations and numerous other legal acts form the new European data law.

Data Compliance

Adhering to regulatory requirements is one of the core components of “data compliance” which has become an integral part of business, regardless of an organization’s industry and size. Data compliance essentially covers any applicable rules organizations must adhere to when processing (personal and non-personal) data including statutory requirements, contractual terms, certifications, codes of conduct, industry standards as well as binding corporate rules and internal policies.

The extensive European data law requirements essentially establish the regulatory framework for setting up business processes as well as the design and utilization of applications and systems within an organization. Adhering to the regulatory requirements of data law by way of “data compliance by design” will play a crucial role for the sustainable success of most digital business models.

Compliance Risks

Non-compliance with European regulation of data and AI may have serious negative consequences for affected organizations, including:

• Severe administrative fines (up to EUR 35m or 7% of the total worldwide annual turnover of the preceding financial year, whichever is higher)
• Actions of competitors under laws on unfair competition
• Claims for damages by affected persons, customers and business partners
• Loss of reputation
• Negative impact on ESG ratings

Data Compliance Governance

To effectively manage the multitude of data compliance requirements in practice, a robust and efficient data compliance governance is essential. This involves establishing effective organisational structures and practical processes for implementing data compliance requirements with clearly defined roles and responsibilities.

Data compliance management systems (DCMS) complement and expand upon the perspective of already established data protection management systems (DPMS). These systems together are designed to systematically plan, implement, continuously monitor and improve measures to comply with regulatory requirements for both personal and non-personal data as well as for artificial intelligence.

Our Data, Tech & Telecoms team is happy to support on any data regulatory matters.
See our Fact Sheet & Capability Statement for more details:

To assist our clients in navigating the regulatory jungle of the new European data law, we provide a regularly updated interactive “Map” of European data law at europeandatalaw.com.