Data transfers to unsecure third countries are something that can keep any person in charge of data privacy compliance awake at night. Because how do you minimize compliance risk when, for example, sending data to the United States? The first step to efficient compliance risk management is to get your data flows, processes and delegation of responsibilities under control.
The infamous ruling by the European Court of Justice in the summer of 2020 on the Schrems II case had direct consequences for thousands of businesses transferring data to such countries as the USA every day. Schrems II removed the ‘Privacy Shield’, and thus the legal grounds that made it possible for European businesses to transfer data to the USA and other countries, without violating GDPR and digital privacy.
Digital privacy in the wake of Schrems II
Even though the ruling is no longer anything new, the aftershocks from Schrems II are still being felt.
It kept a lot of data controllers awake at night, because the lack of transparency makes it difficult to see how businesses can navigate successfully in the new reality and uphold digital privacy in the wake of Schrems II.
How can you ensure data privacy compliance when transferring personal data to a third country that does not provide the same level of protection and digital privacy as that within the EU's borders, whilst maintaining efficient and competitive business practices? That’s the question that’s left businesses of all sizes and in all sectors in no man’s land.
The truth is that there is no simple answer, because there is no precedent. That means that most businesses will have to perform their own risk assessment to minimize compliance risk. But one thing is certain: The worst thing you can do is do nothing, in the hope that your business will slip under the radar. Because the consequences of not having the right risk and compliance tools at place when transferring data to a third country such as the USA can be far-reaching, in terms of damage to reputation and finances.
The dilemma concerning third party transfers and potential data privacy breaches has not diminished in line with businesses of all sizes and in all sectors accelerating their Cloud migration. Because while the benefits of the Cloud, such as cost reductions, greater efficiency, a boost to innovation, scaling and faster time-to-market, are clearly evident, there are important compliance risk questions to consider. You have to put focus on compliance risk management and digital privacy.