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Glossary
Term

GDPR

The EU General Data Protection Regulation.

Adopted in 2016 and enforceable from 2018, the GDPR sets out rights for individuals and obligations for organizations that process personal data of EU residents. Enforcement can include fines up to 4% of global annual revenue.

Related

  • DPIA
  • Controller
  • Processor

Definition

GDPR, explained

The General Data Protection Regulation is formally Regulation (EU) 2016/679. As a regulation rather than a directive, it applies directly in every EU member state without needing national legislation to take effect, although member states add their own rules in some areas. It has applied since 25 May 2018. Unlike ISO 27001 or SOC 2, GDPR is law, and compliance is not something you opt into.

Who it applies to

Article 3 sets two routes into scope. An organization established in the EU is covered for processing in the context of that establishment, wherever the processing happens. An organization outside the EU is covered when it offers goods or services to individuals in the EU, or monitors their behavior there. Note that the test is about people in the Union, not EU citizenship. The United Kingdom now has its own UK GDPR, which is closely aligned but legally separate.

The vocabulary you need

Term, Meaning in practice comparison
Personal dataAny information relating to an identified or identifiable person, including online identifiers such as IP addresses or device IDs
ControllerDecides why and how personal data is processed; carries primary accountability
ProcessorProcesses personal data on the controller's behalf, such as a SaaS vendor; must have a written contract under Article 28
Lawful basisOne of six grounds in Article 6 required for any processing: consent, contract, legal obligation, vital interests, public task, legitimate interests
Record of processing activitiesArticle 30 inventory of what data is processed, why, by whom, and where it goes
DPIAData protection impact assessment, required under Article 35 for processing likely to result in high risk
DPOData protection officer, mandatory only in the circumstances set out in Article 37

The seven principles

  1. Lawfulness, fairness, and transparency
  2. Purpose limitation
  3. Data minimization
  4. Accuracy
  5. Storage limitation
  6. Integrity and confidentiality
  7. Accountability: being able to demonstrate compliance with all of the above

Accountability is the principle that turns GDPR into a documentation exercise as much as a behavioral one. It is why records of processing, DPIAs, processor contracts, and security evidence matter even when nothing has gone wrong.

Breaches and fines

Under Article 33, a controller must notify the supervisory authority of a personal data breach without undue delay and, where feasible, within 72 hours of becoming aware of it, unless the breach is unlikely to result in a risk to individuals. Article 83 sets two tiers of administrative fines, applied to undertakings at whichever amount is higher:

Tier, Maximum, Examples of infringements comparison
LowerEUR 10 million or 2% of total worldwide annual turnover of the preceding financial yearController and processor obligations such as security of processing, records, DPIAs, breach notification
HigherEUR 20 million or 4% of total worldwide annual turnover of the preceding financial yearCore principles, lawful basis, data subject rights, international transfers

Where security frameworks fit

Article 32 requires appropriate technical and organizational security measures but does not prescribe them. An ISMS built on ISO 27001 is a common way to demonstrate that, and ISO/IEC 27701 extends it to privacy management. Neither is proof of GDPR compliance on its own, since GDPR also covers lawful basis, transparency, and individual rights. For the full obligations and how to operationalize them, see the GDPR framework page.

FAQ

Frequently asked questions

Does GDPR apply to companies outside the EU?

Yes, in two situations. It applies when a non-EU organization offers goods or services to people in the EU, whether paid or free, or monitors their behavior in the EU, such as through tracking or profiling. Such organizations generally need to appoint a representative in the EU, subject to limited exceptions.

Is there a GDPR certification?

Article 42 allows approved certification mechanisms, and some schemes exist, but certification is voluntary and does not reduce the controller's or processor's responsibility for compliance. ISO 27001 and SOC 2 are not GDPR certifications, though they provide useful evidence for the security requirements in Article 32.

What is the difference between a controller and a processor?

A controller determines the purposes and means of processing personal data, such as a company handling its own customer records. A processor acts on the controller's documented instructions, such as a cloud email or CRM provider. The same organization can be a controller for some data, like its employees, and a processor for its customers' data.

How quickly must organizations respond to a data subject access request?

Without undue delay and within one month of receiving the request. That period can be extended by two further months where requests are complex or numerous, provided the individual is told about the extension and the reasons within the first month. The response is normally free of charge.

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