Phoenix Data Protection Essentials #2
Today’s focus: the risks and penalties for non-compliance with Law No. 1.565
Non-compliance with personal data protection requirements goes far beyond the issue of regulatory penalties.
It represents a cross-cutting risk that may affect the organisation as a whole.
1️⃣ The risks
👉 Reputational risk
A personal data breach or inadequate compliance management may have a lasting impact on the organisation’s reputation and credibility.
📌 A direct impact on the trust of customers, business partners and investors.
👉 Commercial risk
Weaknesses in personal data protection may result in lost business opportunities, contractual disputes or a competitive disadvantage.
📌 Compliance has become a key selection criterion in business relationships.
👉 Organisational risk
An incomplete understanding of regulatory obligations may disrupt internal processes and place significant pressure on teams during crisis situations.
📌 It may reveal structural weaknesses in information systems governance, IT and internal procedures.
👉 Litigation risk
Failure to comply with the applicable regulatory framework may result in penalties, as well as significant indirect costs associated with legal proceedings and corrective measures.
📌 A combination of legal, operational and financial consequences.
2️⃣ The penalties
👉 Administrative penalties
From formal notice to administrative fines:
– Up to €5 million or 2% of worldwide annual turnover.
– Up to €10 million or 4% of worldwide annual turnover.
📌 The amount depends on the nature and seriousness of the infringement.
👉 Criminal penalties
– Up to €90,000 in fines and one year’s imprisonment.
– Or up to €18,000 in fines and six months’ imprisonment.
📌 Individual liability may also be engaged.
➡️ In practice
Non-compliance is a significant risk at the intersection of legal, operational and commercial challenges.
👉 Personal data protection is now an integral part of governance and risk management frameworks.
