Question 1

How do you calculate GDPR compliance risk?

Accepted Answer

GDPR compliance risk is calculated by assessing multiple factors: data volume and sensitivity, processing methods, security measures in place, breach history, DPO appointment status, data retention policies, and third-party sharing practices. Each factor is scored based on risk level, then weighted to produce an overall risk score (0-100). Higher scores indicate greater exposure to GDPR fines and enforcement actions. The assessment considers both technical measures and organizational policies to provide comprehensive risk quantification.

Question 2

What are the maximum GDPR fines?

Accepted Answer

GDPR allows for two tiers of fines: Tier 1 fines up to €10 million or 2% of global annual turnover (whichever is higher) for less serious violations like inadequate record-keeping. Tier 2 fines up to €20 million or 4% of global annual turnover (whichever is higher) for serious violations like unlawful data processing, failure to obtain consent, or data breaches. Actual fines depend on factors including violation nature, duration, data subject numbers affected, cooperation with authorities, and previous infractions.

Question 3

What factors increase GDPR compliance risk?

Accepted Answer

Key risk factors include: Processing special category data (health, biometric, genetic, racial/ethnic origin), large-scale data processing (100,000+ individuals), automated decision-making and profiling, history of data breaches, inadequate security measures, cross-border data transfers, lack of documented policies, missing Data Protection Officer (when required), unclear or non-compliant data retention, extensive third-party data sharing, insufficient consent mechanisms, and lack of Data Protection Impact Assessments for high-risk processing.

Question 4

What is a Data Protection Officer (DPO) and when is one required?

Accepted Answer

A Data Protection Officer (DPO) is an expert who ensures GDPR compliance within an organization. DPO appointment is mandatory for: public authorities and bodies (except courts acting in judicial capacity), organizations whose core activities involve large-scale regular and systematic monitoring of individuals (e.g., behavioral advertising), and organizations whose core activities involve large-scale processing of special category data. Even when not mandatory, appointing a DPO is best practice for demonstrating GDPR commitment and reducing compliance risk.

Question 5

How are GDPR fines actually calculated by regulators?

Accepted Answer

Supervisory authorities consider Article 83 criteria when calculating fines: nature, gravity, and duration of infringement, intentional or negligent character, actions taken to mitigate damage, degree of responsibility, previous relevant infringements, degree of cooperation with authority, categories of personal data affected, how the authority became aware of infringement, compliance with previous orders, adherence to approved codes of conduct, and any other aggravating or mitigating factors. Fines typically start at a baseline calculated from these factors, with aggravating circumstances increasing the amount.

Question 6

What is considered 'special category' data under GDPR?

Accepted Answer

Special category data (Article 9) includes: racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, genetic data, biometric data for uniquely identifying a person, health data, and data concerning sex life or sexual orientation. This data requires enhanced protection with stricter legal bases for processing (explicit consent, legal obligations, vital interests, etc.). Processing special category data significantly increases GDPR risk and requires comprehensive security measures, impact assessments, and documentation.

Question 7

How does data breach history affect GDPR compliance risk?

Accepted Answer

Data breach history significantly increases GDPR risk and potential fines. Factors include: number and severity of breaches, whether breaches were properly reported within 72 hours, adequacy of post-breach measures, whether similar breaches have occurred multiple times, volume of personal data affected, and harm caused to data subjects. Previous breaches demonstrate inadequate security measures and increase regulator scrutiny. Organizations with breach history face higher baseline fines and closer monitoring. Breach notification failures can result in separate penalties.

Question 8

What security measures does GDPR require?

Accepted Answer

GDPR requires 'appropriate technical and organizational measures' based on risk, including: encryption of personal data at rest and in transit, pseudonymization where applicable, regular security testing and audits, access controls and authentication (preferably multi-factor), security awareness training for staff, incident response and breach notification procedures, regular backups and disaster recovery plans, vendor security assessments, data minimization practices, and documented security policies. Measures should be proportionate to processing risk and data sensitivity.

Question 9

How does GDPR risk assessment help organizations?

Accepted Answer

GDPR risk assessment quantifies compliance exposure and helps organizations: prioritize security investments and remediation efforts, justify budgets for compliance initiatives, identify critical gaps requiring immediate attention, demonstrate due diligence to stakeholders and regulators, understand potential financial impact of non-compliance, develop roadmaps for achieving compliance, compare risk profiles before and after improvements, and make informed decisions about data processing activities. Regular assessments help maintain compliance as business operations evolve.

Question 10

What is a Data Protection Impact Assessment (DPIA)?

Accepted Answer

A DPIA is a systematic process to identify and minimize data protection risks in high-risk processing operations. Required when: processing involves large-scale systematic monitoring, large-scale processing of special category data, systematic evaluation/scoring, automated decision-making with legal/significant effects, processing of vulnerable persons' data, matching/combining datasets, or innovative technology use. DPIA includes: processing description, necessity and proportionality assessment, risk identification and assessment, and measures to address risks. Failure to conduct required DPIAs increases GDPR enforcement risk.

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