In May, the European Union’s General Data Protection Regulation (GDPR) went into force, requiring companies doing business in the EU, or doing business with companies that do business in the EU, to meet extensive compliance obligations for processing personal data. For many companies, compliance efforts collided with the extensive new requirements and the reality of overhauling their business operations. Not surprisingly, 42 percent of companies reported they would miss the compliance deadline.

With fines up to 4 percent of annual revenue or 20 million euros (GDPR Art. 83(5)-(6)), the consequences of noncompliance are steep, and with each passing day, companies not yet in compliance run the risk of substantial fines. Additionally, many companies are subject to existing contractual obligations with their business partners to comply with laws, which may now include GDPR. To make the greatest progress at the fastest speed, these companies should assess the risk of compliance activities and prioritize the largest risk areas.