What Does GDPR Mean For the Retail Industry?
Persistent high-profile cyber attacks and cyber crime globally are a sharp reminder of how IT dependent we have all become.
The importance of managing personal data, and the need for a strategic and tactical, comprehensive cyber security planning and implementation is paramount.
The General Data Protection Regulation (GDPR) are directly applicable in EU member states on 25 May 2018, and retail businesses must now be meticulous when it comes to data management.
New IT continues to engage the retail sector as the use of personal data has become a valuable asset. Retailers collect masses of personal data, from customers/client email and payment detail to information collated via debit/credit, loyalty cards, and online accounts.
As a sector which collects significant amounts of data about customers, including names, addresses, dates of birth, and credit card details a data breaches are happening. But it is not only customer data that is potentially insecure, as retail business also has masses of employee data going back many years.
Issues
Knowing and engaging with your client experience and understanding their preferences is critical consumers now expect personalised shopping experiences.
The challenge will be for any current business is to ensure that large amounts of personal data can be stored and analysed easily and quickly, without compromising the security of the customers.
GDPR requires a fully-fledged review of data control, use and processing systems and activity. This of course, offers unique opportunities for analysis and plotting data streams and these need to be controlled and set for GDPR compliance and also for effective business efficiency.
Organisations must be more clear concerning the personal data they have, the reason for its collection, and their intentions for its use. This industry already has many regulation, but much of this commercial sector is still quite unprepared for GDPR.
Options for the Future
News has, so far, focused on the increase in penalties, but GDPR also offers opportunities for retail to:
- Employ the GDPR requirements to protect and carefully use client data by the organisation and then to explain this to the customers – that you are looking after their personal security.
- Improve information management and cyber security systems and strengthen risk culture.
- Review your cyber insurance to ensure that the relevant indemnity limits would cover the costs associated with data breaches and the issues surrounding GDPR.
GDPR can be used to improve the client and business relationship. It can also help retail take advantage of the wider global market information and opportunities that will let your organisation benefit from the new IT revolution and the data-driven economy.
For further information contact the GDPR Advisory Boardt: www.gdpr-board.co.uk
