For several years, data protection has been a critical focus for businesses of all sizes. As digital transformation accelerates, the volume of data companies handle continues to grow. For many organisations, data is among their most valuable assets—it enables them to build customer relationships, enhance service quality, and run effective marketing campaigns.
At the same time, businesses must comply with strict data protection regulations designed to safeguard individuals’ privacy and security. The most significant regulation in this field is the General Data Protection Regulation (GDPR), known as RODO in Poland, which has been in force across the European Union since May 25, 2018. Non-compliance with GDPR can lead to substantial financial penalties and reputational damage, regardless of a company’s size or industry.
In this article, we will explore key aspects of data protection and outline best practices that will help businesses securely and legally process customer and employee data.
Key definitions
Before diving into the responsibilities of businesses, it is essential to understand some fundamental terms:
- Personal data – any information that can be used to identify an individual (data subject). This includes—but is not limited to—names, email addresses, phone numbers, national identification numbers, home addresses, IP addresses, and geo-location data.
- Data controller – the entity (individual, company, or public authority) that determines the purposes and means of personal data processing. In a business context, this is usually the company itself.
- Data processor – an entity that processes data on behalf of the controller based on a formal agreement. A processor cannot independently decide how to use the data.
- Data processing – any operation performed on personal data, such as collection, storage, modification, sharing, or deletion.
Understanding these concepts is crucial for managing data processing effectively and ensuring compliance.
Business responsibilities in data protection
Any company processing personal data must ensure compliance with applicable laws, particularly GDPR. This involves fulfilling several key obligations.
Information obligation
Businesses must provide clear and transparent information to individuals whose data they collect. This includes:
- the identity of the data controller,
- the purpose and legal basis for processing,
- the duration of data retention.
This information should be easily accessible, for example, through clear privacy policies on company websites or in contracts and forms provided to customers.
Record-keeping and documentation
Maintaining and updating documentation related to data protection is essential. Businesses should develop and regularly update documents such as:
- Data protection policy outlining security principles and procedures for handling data,
- Incident response plan detailing steps to take in case of a data breach, such as unauthorised access or data loss,
- Record of processing activities documenting what data is processed, for what purpose, on what legal basis, and who has access to it.
Proper documentation not only helps businesses understand their data processing activities but also demonstrates compliance in case of audits. Under GDPR’s accountability principle, companies must be able to provide evidence of their compliance efforts.
Technical and Organisational Measures
One of the most crucial responsibilities for any organisation is the implementation of appropriate technical and organisational measures to ensure data security and privacy.
From a technical perspective, essential measures include:
- Data encryption to protect sensitive information from unauthorized access and breaches.
- Regular software updates to address security vulnerabilities and ensure that systems remain secure against emerging threats.
- Firewalls to control and monitor network traffic, acting as a barrier to potential cyber threats.
- Two-factor authentication (2FA), which significantly strengthens security by adding an extra layer of protection to access control.
In the organisational domain, key practices involve:
- Periodic employee training to keep staff informed and vigilant about potential security risks, ensuring they follow best practices in cybersecurity.
- Clear procedures for responding to security incidents, ensuring a well-coordinated, rapid, and effective response in case of a breach.
- A business continuity plan, which is vital for maintaining essential operations in the event of a disaster or cyberattack, minimising downtime and damage.
For organisations handling large volumes of sensitive or high-risk data, appointing a Data Protection Officer (DPO) is highly recommended. The DPO plays a pivotal role in overseeing the company’s compliance with data protection laws, providing expert guidance to staff, and acting as a liaison with relevant authorities, such as the President of the Personal Data Protection Office in Poland. Furthermore, the DPO is instrumental in developing internal procedures and ensuring the company stays informed about the latest legislative changes to continuously improve data security practices.
Adhering to these obligations is not a mere formality—rather, they are fundamental to safeguarding the privacy of customers, clients, and employees, while also enhancing the organisation’s reputation, trustworthiness, and long-term stability.
Common challenges and mistakes in data protection compliance
Many businesses struggle with implementing data protection measures, particularly as technology evolves and data volumes increase. What are the most common mistakes in data protection compliance?
Neglecting the information obligation
Vague privacy policies, failure to specify the purpose and scope of data collection and not updating privacy notices for new processing activities can result in non-compliance and legal risks.
Collecting excessive data
Many companies collect more data than necessary, often following a “just in case” approach. GDPR mandates data minimisation, meaning businesses should only collect the data required for a specific purpose.
Lack of proper documentation
Some businesses assume that following good data protection practices is enough, neglecting the need to document their compliance. However, GDPR requires companies to maintain records of processing activities, security policies, and other key documents.
Insufficient employee training
Even the best security systems and policies are ineffective if employees do not understand them. Human error is a leading cause of data breaches, and many companies lack clear procedures for responding to security incidents. A well-defined response plan, including timely reporting of breaches to authorities and affected individuals, is critical in mitigating risks and penalties.
These challenges highlight the importance of a structured approach to data protection—encompassing legal, organisational, and technological measures.
Ensuring data security in a digital environment
With the growing digitisation of business operations, securing data in the digital environment has become a top priority. Cybercriminals continually refine their techniques, using phishing and social engineering to steal credentials or deploying ransomware to block access to essential systems. A comprehensive security strategy must include fundamental technical protections such as firewalls, antivirus software, and intrusion detection systems (IDS). Effective password management plays a key role in preventing breaches. That is why companies should enforce strong password policies requiring complex passwords, regular updates, and the use of multi-factor authentication.
Restricting access to data based on necessity—the principle of minimum privileges—further minimises security risks. Additionally, encrypting sensitive information both at rest and in transit ensures that unauthorised parties cannot access or manipulate critical data. Regular data backups are essential measure, allowing businesses to quickly restore operations in the event of a cyberattack or hardware failure. Cloud solutions are increasingly popular for data storage and security, offering multilayered protection managed by professional service providers.
However, cybersecurity is not just about technology—it also relies on organisational culture and employee awareness. Conducting regular cybersecurity training to help employees recognise phishing scams and social engineering tactics and workplace policies such as locking computer screens when stepping away from desks and keeping confidential documents stored securely further reduce security risks. Implementing these practices fosters a security-conscious culture and strengthens overall resilience against cyber threats.
Consequences of data protection negligence
With growing public awareness of data privacy, the regulations are becoming stricter. Under GDPR, businesses can face fines of up to €20 million or 4% of their global annual turnover, whichever is higher.
However, financial penalties are just one aspect. A data breach—especially if made public—can severely damage a company’s reputation. Losing customer trust, canceled contracts, and legal claims from affected individuals can lead to additional financial and operational costs. Companies may also be required to undergo audits and implement new security measures under regulatory scrutiny.
In the long run, investing in robust data protection strategies, internal policies, and employee training is far more cost-effective than dealing with the consequences of a breach.
Summary
Data protection in business is not a one-time effort but an ongoing process that requires continuous monitoring and adaptation. Regulatory changes, technological advancements, and emerging trends in AI and cloud computing demand that businesses stay vigilant and proactive. In the coming years, we can expect further regulations on cookies, geolocation tracking, and user profiling, impacting how businesses manage data.
Transparent and secure data handling is not just about legal compliance—it also builds trust among customers, partners, and investors. Companies that prioritise responsible data management can gain a competitive edge and strengthen their market position. It is therefore worthwhile to invest in a comprehensive approach to data protection—encompassing legal, technological, and organisational aspects—to not only meet future challenges but also to cultivate a reputation as a socially responsible and trustworthy business partner.
At Infinity Group, we take a comprehensive approach to data protection. If you are looking for a partner that ensures compliance and security at the highest level while delivering innovative IT solutions, contact us.
