Just 15% of Irish businesses ‘fully compliant’ with GDPR rules

Irish businesses continue to face challenges in complying with the General Data Protection Regulation (GDPR), six years on from its introduction, according to new research.

The research, which was conducted by Ipsos B&A, found that just 15% of businesses consider their organisation to be ‘fully compliant’ with the legislation, which is billed as the toughest privacy and security law in the world.

A further 58% of respondents indicated their organisation was ‘materially compliant’, and 25% say their organisation was ‘somewhat compliant’. In order to achieve their compliance targets, half of the businesses surveyed believe they need more resourcing, financial investments or further expertise in this space.

The findings were presented by Forvis Mazars and McCann FitzGerald LLP in their latest joint survey, “GDPR and Digital Legislation: A Survey of the Impact and Effect on Organisations in Ireland”.

The research also found that 82% of respondents believe the risks associated with GDPR non-compliance are increasing, with respondents citing ‘reputational risk’ as the most important factor in determining an organisation’s data protection risk appetite, followed by ‘fear of fines’. Eight in 10 (81%) of the businesses surveyed say they intend to improve their compliance status.

This is the eighth edition of the Forvis Mazars and McCann FitzGerald LLP annual survey on the impact of GDPR on organisations in Ireland.

As well as examining the latest perceptions among Irish businesses regarding GDPR compliance, the report also assesses awareness and readiness for a wave of new legislative developments from the European Union in response to rapid technological changes.

Findings show that 60% of those surveyed are concerned about the impact of new digital legislation on their organisation, which includes DORA (the Digital Operational Resilience Act), the AI Act, the Data Act, the Data Governance Act, the Digital Services Act, the Online Safety and Media Regulation Act, the Digital Markets Act, the Network and Information Security Directive 2 (NIS2) and the Cyber Resilience Act.

There is also a high degree of uncertainty regarding the new legislation with many respondents being unsure of their applicability to their business, which suggests further education and awareness is required within organisations.

Liam McKenna, Partner in Consulting Services at Forvis Mazars, said: “This survey underscores the essential need for organisations to remain up to date with both current and forthcoming regulations in the digital space.

“Irish businesses must diligently maintain their compliance initiatives, particularly amid the significant financial and reputational risks at stake.

“Although GDPR regulations were implemented in 2018, that only 15% of Irish companies are fully compliant is a concern for Irish business, particularly in light of further digital legislation coming down the tracks including the Digital Operational Resilience Act (DORA), AI Act, Data Act, and Digital Services Act, among others,” he continued.

“Irish companies therefore need to urgently focus on GDPR adherence, while actively gearing up for new legislative requirements.”