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Your business handles a significant amount of sensitive information. Depending on the size and purpose of your company, you may need to appoint a Data Protection Officer (DPO). The role of a DPO is to ensure your organisation processes personal information correctly and complies with data protection rules. This is particularly relevant if your company handles special categories of data. This article will explore the four main benefits of appointing a DPO and what their responsibilities may involve.
When is My Company Required to Appoint a Data Protection Officer?
The General Data Protection Regulation (GDPR) requires your organisation to appoint a DPO where your company is:
- processing data relating to past criminal convictions;
- regularly monitoring individuals (for example, electronic surveillance of the public); or
- handling special categories of data.
The following section will explore the four benefits of appointing a DPO in your company.
1. Processing Criminal Records
Many employers wish to carry out criminal record checks when hiring employees. However, criminal records have special protection under data protection rules. As such, your organisation needs to have a DPO to process this data safely.
Without a DPO, your organisation may breach data protection rules regarding processing criminal record data and risk an investigation by the Information Commissioner’s Office (ICO). The ICO has the power to fine your company up to £17.5m for breaches.
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2. Expert Guidance on GDPR rules
A good DPO will know the GDPR and Data Protection Act thoroughly. Therefore, they will be in a great position to advise your business on safely handling personal data and avoiding hefty ICO fines. DPOs are required to have relevant experience in data processing and GDPR rules and be involved in all vital data protection matters (including Subject Access Requests). DPOs are also very useful in carrying out data protection impact assessments for your business. Your company will need this assessment if it wishes to process high risk information.
3. Handle Special Categories of Data
As mentioned above, special categories of data encompass a broad range of topics. For example, suppose your business uses a fingerprint recognition system on its electronic devices. As processing biometric data is a special category, you will require a DPO.
Similarly, many businesses will conduct surveillance on individuals’ online purchase history. For example, it is a well-known practice that some big online sellers use purchasers’ age, location, and background to develop algorithms to suggest future purchases. These businesses must have a DPO so they may track orders and learn purchase patterns.
4. Intent to Comply with GDPR
The ICO can investigate your business for any alleged breach of GDPR rules. Suppose they find that a violation has occurred. In that case, they can ask your organisation to remedy the situation and implement policies to ensure it does not happen again or deliver a financial penalty.
Your business can argue that the prior appointment of a DPO demonstrates an intention to comply with data protection rules fully. This can reduce any penalty awarded by the ICO, potentially saving your organisation thousands of pounds.
Key Takeaways
The appointment of a DPO does not automatically guarantee your company will not breach GDPR rules. A company that appoints a DPO but fails to give them the relevant resources to do their job successfully will not obtain many benefits. However, appointing a DPO is an excellent preventative measure for your business to avoid critical breaches.
If you need help with data protection requirements and the appointment of a Data Protection Officer, our experienced Data, Privacy and IT lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
Yes, but only if they have enough experience with data protection rules and receive sufficient time and resources to perform the role well. You should not appoint someone without relevant training or experience to be the DPO.
Most businesses only appoint one DPO, but there is no rule limiting DPO numbers. Your company can nominate more than one DPO if the data protection workload of your organisation is exceptionally high. For example, if you have many employees or a large number of pending Subject Access Requests.
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