December 16, 2024
GDPR Compliance: Why Most Companies Are Falling Short and How to Fix It
A 2024 report by DLA Piper found that GDPR fines reached an all-time high, with regulators imposing over €2.5 billion in penalties in just one year.

When the General Data Protection Regulation (GDPR) came into effect in May 2018, it was hailed as a game-changer for data privacy. Companies worldwide scrambled to implement policies and protections to avoid hefty fines and safeguard customer trust. But years later, research reveals a troubling reality: most companies are still not fully GDPR-compliant, especially when it comes to file-level security.

A 2024 report by DLA Piper found that GDPR fines reached an all-time high, with regulators imposing over €2.5 billion in penalties in just one year. The most common infractions? Mishandling personal data and insufficient security measures. Many businesses underestimate the importance of protecting sensitive files, both within their organization and beyond. This oversight is not just risky—it’s costly.

The Hidden Weakness: File-Level Security

While companies may invest in network firewalls and endpoint protection, file-level security often remains an afterthought. This gap leaves sensitive information exposed once it leaves the company’s controlled environment. Consider these common scenarios:

  • An employee emails a sensitive document to a personal account.
  • A third-party vendor downloads files for processing but lacks robust security on their systems.
  • An insider unintentionally (or intentionally) shares confidential information externally.

The GDPR requires organizations to ensure the security of personal data at all stages, including when it is shared or stored off-site. Article 32 of the regulation explicitly calls for encryption and pseudonymization to reduce risks. Yet, a 2023 survey by Capgemini revealed that just 28% of companies reported full compliance with GDPR encryption requirements. This statistic underscores the widespread failure to secure data at the file level.

The Consequences of Non-Compliance

Non-compliance with GDPR can lead to devastating consequences:

  • Hefty Fines: Regulators can impose penalties of up to €20 million or 4% of global turnover, whichever is higher.
  • Reputational Damage: Data breaches erode customer trust and loyalty, potentially driving clients to competitors.
  • Operational Disruption: Investigations and remediation efforts can disrupt business continuity, leading to additional revenue losses.

One of the most cited GDPR violations involves "failure to implement adequate technical and organizational measures" to protect personal data. For many organizations, this boils down to inadequate file-level security.

How Governate Helps Achieve GDPR Compliance

Governate’s Information Rights Management (IRM) solutions provide an end-to-end approach to securing sensitive data, ensuring compliance with GDPR requirements even in the most complex scenarios. Here’s how we make compliance effortless:

1. File-Level Security, Everywhere

Governate protects sensitive files regardless of where they are stored or shared. With advanced encryption and access controls, your data remains secure whether it’s on a laptop, cloud storage, or a third-party system.

2. Control Beyond the Perimeter

Unlike traditional security tools, Governate extends protection beyond your organization’s walls. When a file is emailed, downloaded, or shared externally, Governate ensures that only authorized users can access it—and only under predefined conditions.

3. Granular Permissions

Governate enables you to set detailed permissions for each file, controlling who can view, edit, print, or share it. Need to revoke access after sharing? No problem—Governate lets you pull back control at any time.

4. Real-Time Audit Trails

Stay compliant with GDPR’s accountability requirements by tracking every interaction with your data. Governate’s audit logs provide a detailed record of who accessed what, when, and how—critical evidence in the event of a regulatory investigation.

5. Seamless Integration

Governate integrates effortlessly with your existing tools, such as Microsoft 365, Google Workspace, and cloud storage platforms, ensuring compliance doesn’t disrupt productivity.

The Path to GDPR Excellence

Compliance with GDPR is not a one-time checklist; it’s an ongoing commitment to protecting personal data. By addressing vulnerabilities at the file level, organizations can avoid penalties, secure customer trust, and operate confidently in today’s data-driven world.

Governate is more than a compliance tool—it’s a partner in building a culture of data security and accountability. With our solutions, your sensitive data remains protected no matter where it goes, helping you stay ahead of evolving regulations and threats.

Ready to Secure Your Data and Stay GDPR-Compliant?

Contact Governate today to learn how our IRM solutions can simplify GDPR compliance and ensure your organization meets the highest standards of data protection. Don’t just comply—excel.