LONDON, November 17, 2017 /PRNewswire/ --
- 28% are unfamiliar with the new regulation they will need to
adhere to in less than a year
- Over half (51%) believe the regulation is too complex for SMEs
and middle market businesses, but agree that increased regulation
around the use of personal data is necessary
Businesses across Europe are
unprepared for the EU's General Data Protection Regulation (GDPR),
which comes into law in May 2018,
according to new research conducted for RSM, the 6th
largest audit, tax and consulting network, by the European Business
Awards. The survey, completed by 400 of Europe's successful business leaders, asked
about their preparedness for GDPR and how the new regulation will
impact their operations.
Less than 12 months before the new regulation comes into effect,
only 8% of business are ready for GDPR, and have made the necessary
changes to be compliant with the regulation. Meanwhile, one in four
business leaders (28%) are completely unaware of the regulation
they will have to adhere to. Worryingly, 26% of business leaders
familiar with their GDPR strategy, admit their organisation will
not be compliant by the May 2018
deadline.
Businesses that fail to comply before the deadline could face
fines of up to 4% of global turnover or €20 million, whichever is
higher.
The process of preparing for GDPR is already impacting business
operations. The survey highlights that a concerning number of
businesses are cutting back in other areas including plans to
create innovative new products (23%) or to fuel growth through
international expansion (22%).
Jean Stephens,
CEO, RSM, commented: "In less than 7 months,
businesses across the continent will have to adhere to GDPR. We
have seen an increase in clients asking us about GDPR consulting
services, however, it is clear from this research that many
businesses do not fully comprehend the hurdles they will have to
overcome ahead of the fast-approaching deadline.
Business leaders need to understand that this is not a simple
tick-box exercise. They will likely need to implement significant
changes that could impact their organisation as a whole and so the
sooner they begin to prepare, the better."
The complexity of the GDPR regulation is starting to weigh on
European businesses. Of those that are looking at the regulation,
51% believe it is too complicated for SMEs and middle market
businesses. Two out of five companies (41% of those involved in or
aware of their organisation's strategy) believe the requirements of
the GDPR regulation will significantly increase their business
expenditure, including spending on consulting services. The use of
external expertise is increasingly prevalent, with 60% of
businesses looking for external support in order to deliver their
compliance project before the May
2018 deadline.
Despite the complexity of the regulation, businesses do
appreciate the necessity of GDPR. Business leaders across
Europe support the changes with
the majority (52%) agreeing that regulation to monitor the use of
personal data is necessary.
Adrian Tripp, CEO, European
Business Awards said: "While most European businesses support
the need for change around personal data, it is clear that many
firms are either finding the GDPR regulations challenging, or are
unaware of the requirements to them. As the clock is ticking it is
important these businesses review the legislation, seek help if
needed, or risk facing large scale fines next year."
The European Business Awards is the largest cross sector
business competition in Europe.
Its primary purpose is to support the development of a stronger and
more successful business community.
RSM is currently advising companies on GDPR planning and
compliance. Information can be found on its GDPR webpage
http://www.rsm.global/gdpr or firms can hear from its experts
direct and register for RSM's GDPR webinar on 30 November 2017 at 12.30GMT.
About the survey
Research was undertaken among European businesses who have entered
the European Business Awards which are sponsored by RSM. The
majority of businesses surveyed were European middle market
businesses which are here defined as having employees in the
hundreds or thousands. The sample included businesses from
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech
Republic, Denmark, UK,
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Turkey, Spain
and Sweden and more.
About RSM
RSM is the sixth largest network of independent audit, tax and
consulting firms, encompassing over 120 countries, 800 offices and
more than 41,400 people internationally. The network's total fee
income is US$4.9 billion.
RSM is the lead sponsor and corporate champion of the European
Business Awards promoting commercial excellence and recognition of
entrepreneurial brilliance.
RSM is a member of the Forum of Firms, with the shared objective
to promote consistent and high quality standards of financial and
auditing practices worldwide.
RSM is the brand used by a network of independent accounting and
advisory firms each of which practices in its own right. RSM
International Limited does not itself provide any accounting and
advisory services. Member firms are driven by a common vision of
providing high quality professional services, both in their
domestic markets and in serving the international professional
service needs of their client base.
About the EBA
The European Business Awards' primary purpose is to support the
development of a stronger and more successful business community
throughout Europe.
For all citizens of Europe,
prosperity, social and healthcare systems are reliant on businesses
creating an even stronger, more innovative, successful,
international and ethical business community - one that forms the
beating heart of an increasingly globalised economy.
The European Business Awards programme serves the European
business community in three ways:
• It celebrates and endorses individuals' and
organisations' success
• It provides and promotes examples of excellence
for the business community to aspire to
• It engages with the European business community
to create debate on key issues
The European Business Awards is now in its 11th year.
This year it engaged with over 33,000 businesses from 34 countries.
Last year's public vote generated over 227,000 votes from across
Europe. Sponsors and partners
include RSM, ELITE and PR Newswire.
http://www.businessawardseurope.com