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GDPR compliance for SaaS platform owners 

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GDPR compliance for SaaS platform owners 

In a digital space where organizations are constantly looking for new ways to operate efficiently, SaaS (Software as a Service) has seen a rapid rise. Businesses using SaaS or owning SaaS are liable to data protection regulations like GDPR since they have control over the data they collect and process.  

Let us understand GDPR compliance, key requirements specific to SaaS platform owners, consequences of non-compliance, and how SharkStriker helps SaaS owners become GDPR compliant. 

Understanding GPDR compliance 

The European Union framed and passed the General Data Protection Regulations (GDPR) in 2016 (in effect in 2018) to protect the fundamental right to privacy, requiring the subject entities to protect personal data whenever it is used.   

It was a comprehensive privacy law that has become a gold standard of compliance. It revolves around seven key principles – Lawfulness, Fairness & Transparency, Purpose Limitation, Data Minimization, Accuracy, Storage Limitation, Integrity & Confidentiality, and accountability.  

The law applies to entities based in European Union countries, offering products or services to its citizens or monitoring citizens’ behavior in some way. Therefore, it applies to all the SaaS providers based in the EU or are offering services/solutions to citizens of the EU or both. 

Why must SaaS owners be serious about GDPR?  

The following are the reasons why SaaS must prioritize GDPR: 

GDPR is a global data protection regulation  

SaaS owners must understand that GDPR is a global regulation, applying to all organizations that are either based in Europe or offering solutions and services to EU residents. Therefore, it becomes essential for global companies to ensure the recommended data protection measures for EU citizens.   

Consumers look for companies that protect their data and rights 

Before considering an organization for their services, customers always prefer companies that have taken measures to safeguard their data and their rights to data having undertaken ethical practices that emphasize user data security.  

GDPR ensures steps are taken to mitigate security risks  

GDPR requires organizations to take pre-emptive measures to assess and address risks across infrastructure. It ensures that the providers have implemented measures like access management, backup management, encryption, physical security, recovery planning measures, and training.  

Improves investor confidence through accountability and transparency 

Customers and investors look for companies that are transparent about how they process their data and whether they are holding themselves accountable for the protection of the data of their customers. 

Non-compliance has consequences  

Organizations using and owning SaaS must understand that any form of non-compliance with regulations might result in financial and reputational consequences like penalties and loss of brand reputation. 

GDPR Compliance for SaaS platform owners: Key requirements 

Any form of non-compliance with GDPR regulations can lead to a fine of up to 20 Euros or 4% of the annual revenue. The following are some of the key requirements that SaaS owners are required to adhere to, based on which they will be evaluated: 

Must ensure security measures  

They must ensure that SaaS providers are employing measures for a resilient security posture, including the deployment of solutions like firewalls and intrusion detection systems and measures to secure data, like using encryption protocols to securely transmit and store data. 

Must Restrict Access controls 

Organizations must implement controls that restrict data access and management to only authorized users. They must consider role-based access or zero trust approach and take pre-emptive steps to prevent unauthorized access. 

Must ensure record keeping and documentation 

As per the GDPR Article 30, organizations should maintain thorough records and documentation reflecting the way they process data.   

Transparency and Accountability 

They must regularly assess and review policies, ensuring transparency on how the data is processed stored, and used with explicit consent communicated with the data subjects. 

Data Subjects Rights  

They must establish a mechanism through which data subjects can quickly exercise their rights, including erasure, editing, and access to data.  They must regularly assess their capability to timely address data subjects’ requests. 

Manage vendor risks 

Organizations are required to manage risks associated with vendors and third-party providers, mandating periodical assessments in contractual agreements. 

Data breach mechanism 

They must ensure that they have framed a detailed incident response plan with detailed procedures for responding to and reporting data breaches. They must also assess whether their mechanism for notifying authorities is effective in reporting on time. 

Should work seamlessly with other IT systems  

The organization must assess whether its SaaS platform is integrated easily with other IT systems, ensuring smooth IT management and compliance. 

Periodical compliance audit 

Organizations are required to regularly assess their GDPR compliance and be transparent about the audit reports with customers. 

Must continuously improve and keep up with the latest GDPR requirements  

They must keep up to date with the latest requirements of GDPR compliance and establish a mechanism of regularly assessing the organization’s cybersecurity posture against the latest security best practices to secure data and improve security posture.   

Learn more about the principles of GDPR

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