Internal Compliance Mechanisms for Firms in the EU General Data Protection Regulation

The new EU General Data Protection Regulation (GDPR) establishes requirements (and certain incentives) for internal compliance mechanisms that do not exist in current legislation. These requirements, which will have an impact on internal processes and staffing of firms, such as the requirement in certain cases of engaging a data protection officer, of conducting a data protection impact assessment, or making notifications of data breaches, will require firms to organize themselves prior to the GDPR becoming applicable in 2018. This article sets out first the increased territorial scope of the GDPR, prior to discussing the increased accountability of firms, focusing on data protection impact assessments, prior consultation and prior authorization, data protection officers, and data breach notifications. On the way, certain differences among the various versions of the GDPR prior to its adoption on these points will be discussed. Finally, incentives for compliance are highlighted