Do you entrust customer data to an IT provider, marketing agency or cloud platform? You need to know who receives it, on what terms and how you can monitor the processing. Below are practical rules for choosing a processor, drafting the agreement and responding to incidents.<\/p>\n
Personal data includes more than a name or address. It can also include information about health, shopping preferences or online behavior. Inappropriate use can lead to concrete consequences:<\/p>\n
The GDPR (General Data Protection Regulation)<\/strong><\/a> imposes obligations on your company in connection with personal data processing. Infringements can result in substantial financial penalties and reputational damage. This is not an abstract risk: the President of the Polish Personal Data Protection Office (UODO) regularly imposes penalties amounting to millions of zlotys.<\/p>\n When entrusting data to an external party, use three criteria.<\/p>\n Before signing an agreement, verify the company that will process the data. Ask about:<\/p>\n Check whether the processor follows good data protection practices<\/strong><\/a>, including:<\/p>\n The processor must act in accordance with the GDPR. Establish:<\/p>\n A data processing agreement governs the relationship between the data controller, your company, and the processor. Without one, you have no basis for pursuing claims if problems arise. Make sure it contains five elements:<\/p>\n Specify what data will be processed and for what purpose. For example, customer data may be stored on a cloud server.<\/p>\n The agreement should state how long the data will be processed. When the cooperation ends, the data should be deleted or returned<\/strong><\/a>. State this expressly.<\/p>\n Agree on the security measures the processor will use, including:<\/p>\n If the processor wants to transfer data to other entities, known as subprocessors, which are subcontractors that will also have access to the data, your consent is required. Make sure the subprocessors also meet security requirements.<\/p>\n Specify who is liable if a data breach occurs. Agree on contractual penalties for failing to perform obligations<\/strong><\/a>. This gives you a practical way to enforce the agreed terms.<\/p>\n Entrusting data does not end your obligations as controller. Put two monitoring mechanisms in place.<\/p>\n Conduct regular audits<\/strong><\/a> to assess security procedures. You can also require reports on the processor’s activities. Include an audit right in the agreement. Without it, you have no formal basis for an audit.<\/p>\n Pay attention to reports of data-related incidents. Under the GDPR, the processor must notify you of a breach without undue delay, and you must report the incident to the supervisory authority within 72 hours.<\/p>\n Many companies make mistakes<\/strong><\/a> that expose them to penalties and data loss. Check whether any apply to your organization:<\/p>\n Incidents can happen despite the best safeguards. Take these three steps:<\/p>\n Modern tools can reduce the risk of breaches. Consider implementing:<\/p>\nHow to choose a data processor<\/h2>\n
Check the contractor’s reliability<\/h3>\n
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Review the security policy<\/h3>\n
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Verify compliance with the rules<\/h3>\n
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What a data processing agreement should contain<\/h2>\n
1. Scope of data processing<\/h3>\n
2. Processing period<\/h3>\n
3. Technical and organizational safeguards<\/h3>\n
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4. Further entrusting of data to other entities<\/h3>\n
5. Liability for infringements<\/h3>\n
How to monitor a data processor<\/h2>\n
Audits and monitoring<\/h3>\n
Incident monitoring<\/h3>\n
Common mistakes when entrusting data<\/h2>\n
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What to do if a data breach occurs<\/h2>\n
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Technologies that support secure data processing<\/h2>\n