Government regulations have had a significant impact on the ability of firms to conduct their normal business operations. In particular, new reporting requirements have been some of the most challenging for companies to comply with, as they often require substantial investments in compliance management and infrastructure.
One recent government regulation that has significantly hindered a firm’s ability to conduct its normal course of business is the European Union’s General Data Protection Regulation (GDPR). The GDPR regulates how companies collect, store, process, and share data collected from individuals who are located within or interact with businesses located within the EU. Companies must ensure they comply with several key elements including obtaining explicit consent from consumers when collecting personal data; keeping accurate records of processing activities; protecting personal data against misuse and unauthorized access; and allowing individuals to request access to their data as well as make changes or delete it altogether. These stringent reporting requirements can be difficult for businesses if not properly managed due diligence ahead of time. This is especially true for smaller firms who lack resources devoted towards compliance management and may struggle to meet these standards in a timely manner or at all.