Short answer: A company is compliant when it adheres to the laws and regulations governing the handling of personal data – and can document it. This requires a clear overview of what data is held, why it is collected, and how it is protected. Data must be processed lawfully, transparently and securely, supported by the right internal procedures and readiness to respond to requests for access or erasure.
What does compliance mean?
Compliance is defined as adherence to rules and guidelines. It is a term that, in a professional context, describes the process by which companies try to meet any legal requirements and recommendations that apply to them. The term is also sometimes referred to as “corporate compliance”. Compliance is often, but not exclusively, about protecting sensitive data. It is this part of compliance that this blog deals with. I want to provide a better understanding of what compliance entails, what happens in the event of a breach of compliance, who is responsible for compliance and, not least, how to achieve compliance.
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Why should you be compliant?
Being compliant means that your company complies with the laws and regulations that apply to you when it comes to handling sensitive personal information. Compliance can seem like heavy duty for some companies, but it is a process that should not be de-prioritised. In short, you can argue that compliance is important for three reasons:
- Compliance demonstrates responsible business practices and strengthens trust in e.g. customers and business partners
- Compliance reduces financial losses by avoiding or minimising fines
- Compliance can equip companies against data leaks and cyber attacks
What happens if you break compliance?
In the UK, the Data Protection Act outlines the domestic guidelines for managing personal data, while the UK GDPR (United Kingdom General Data Protection Regulation) mirrors the GDPR (General Data Protection Regulation) and serves as the data protection regulation that companies in the UK must adhere to post-Brexit. In the UK, oversight and audits are managed by the Information Commissioner’s Office (ICO). Failure to comply with UK GDPR regulations can result in severe repercussions for both individuals impacted by data breaches and the companies responsible for exposing personal data.
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Two meanings of compliance
Compliance can have two different meanings. First, it refers to what the company does, your steps you take to follow rules and guidelines. Secondly, it describes the success of such efforts, i.e. becoming compliant. Compliance is not a permanent state. It is an ongoing process that requires self-monitoring to be sure you continue to meet regulations. Additionally, you must keep up with any new legal requirements that may apply to your company.
What does compliance affect?
As mentioned, compliance is about compliance with all relevant laws, regulations, standards and internal policies that apply to a company. This may include legislation related to finance, data protection, health and safety, trade, environment, health and safety, as well as ethical standards and industry-specific requirements. Compliance also involves the implementation of appropriate control and monitoring mechanisms to ensure that these rules and standards are adhered to in a consistent and effective manner. Compliance is thus a broad term, but we will in future deal with compliance in relation to data protection.
Stop the GDPR monster before it gets its hold of your personal data
How do you become compliant?
To become compliant, there are several key areas you need to address:
- Overview – You need to know what personal data you hold, where it is stored, and why you have it.
- Legal basis – You must have a lawful reason for processing data (e.g. consent, contract, legal obligation).
- Transparency – You must be clear about how you process personal data – typically through a clear and accessible privacy policy.
- Security – You need technical and organisational measures in place to protect the personal data you hold.
- Documentation and accountability – You must be able to demonstrate how personal data is protected and ensure compliance is documented.
- Data subject rights – You must be prepared to handle requests for access, rectification, erasure, or data portability.
- Retention policy – You must know how long personal data is kept – and ensure it is deleted when you no longer have the right to store it.
To help you become compliant, we’ve created a GDPR checklist.
Who is responsible for you being compliant?
Ultimately, the responsibility for compliance falls to management. This includes, for example, the owner of the company, the CEO, the executive board, and others who control it are legally responsible for it. Management is responsible for internal control and risk management, which includes being compliant. Larger companies are required by law to hire or appoint a Data Protection Officer who can take care of all the work related to being compliant with rules and standards – including creating awareness within the company.
In smaller companies, the owner may need to personally take care on compliance. It can be tricky for small business owners to juggle compliance along with all the other issues that require their attention. But if the owner keeps up to date with the rules that apply to their sector and has the right tools and support, they can manage it. However, it is important to remember that compliance is a company-wide responsibility and all employees and departments should work together to maintain compliance with relevant standards and regulations.
FAQ on compliance
1. What does compliance actually mean?
Compliance means that a business follows the laws, regulations, and internal policies relevant to its industry and operations – such as GDPR, health and safety, and financial reporting requirements.
2. Why is compliance important?
It protects the business from fines, legal action, and negative publicity – and shows the outside world that the company operates responsibly and with integrity.
3. Who is responsible for compliance within a business?
It’s typically the responsibility of senior management or a dedicated compliance, IT or HR lead – but all employees play a role in ensuring the rules are followed in day-to-day operations.
4. What are the risks of non-compliance?
Beyond hefty fines, non-compliance can result in loss of customer trust, operational disruption, and serious reputational damage.
5. How can we work more efficiently with compliance?
In short: automate, document, and gain visibility. Tools can help identify and manage sensitive data quickly and securely.
6. Is compliance only relevant for large companies?
No – all businesses, regardless of size, have a responsibility to comply with applicable laws, especially when it comes to personal data and GDPR.
The smart way to compliance
Regardless of the size of your company, being compliant can be an extensive task. Fortunately, compliance tools can help you meet the requirements of the GDPR faster and more accurately than manual processing. These tools are capable of automating many of the processes involved in processing personal data and complying with GDPR requirements.
Read more
Sebastian Allerelli
Founder & COO at Safe Online
Sebastian is the co-founder and COO of Safe Online, where he focuses on automating processes and developing innovative solutions within data protection and compliance. With a background from Copenhagen Business Academy and experience within identity and access management, he has a keen understanding of GDPR and data security. As a writer on Safe Online's Knowledge Hub, Sebastian shares his expertise through practical advice and in-depth analysis that help companies navigate the complex GDPR landscape. His posts combine technical insight with business understanding and provide concrete solutions for effective compliance.
