# The GDPR countdown – The importance of a data protection lead
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2018-01-13
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Strategic Approach to GDPR Compliance for Accountants
Meta Description: Learn why naming a GDPR lead is crucial for ensuring smooth transition and compliance with data protection regulations. Find out the key attributes required
URL: https://financedigest.com/the-gdpr-countdown-the-importance-of-a-data-protection-leadhtml

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_**Sion Lewis**, CEO of_ [_IRIS Accountancy Solutions_](https://www.iris.co.uk/insight/gdpr-hub/)

25th May 2018. With less than five months before GDPR compliance is law, it’s vital accountants take a strategic approach to GDPR as they would with any other regulatory changes.

Leaving each member of the team to digest the intricacies of the upcoming changes would risk employees interpreting elements of the regulation differently and may result in disruption in the organisation caused by misinterpretation.

This first in a series of articles examines the initial key step which must be taken on the GDPR journey; assigning a person in charge of auditing, risk assessment and enforcing compliance of [Data Protection across your whole](https://www.financedigest.com/interoperability-of-data-to-accelerate-the-whole-slide-imaging-systems-market.html "Interoperability of data to accelerate the Whole Slide Imaging Systems Market") practice.

**Name the GDPR lead**

A GDPR lead must be named from the outset, and the appointed person should have a number of attributes in their arsenal. Accountants by definition have a strong understanding of the importance of compliance due to the client work they conduct day to day. However, that alone isn’t enough. The lead should be a senior employee seen as a trustworthy member of the team. If people are naturally inspired to follow this employee’s lead in their [working life](https://www.financedigest.com/redefining-what-it-means-to-have-it-all-how-to-make-work-fit-into-your-life.html "Redefining What It Means to Have It All: How to Make Work Fit into Your Life"), doing so to ensure GDPR compliance will be a more comfortable process. Also, the better understanding the lead has of the sector, the practice and the world of business as a whole, the less issues the firm will face.

Seniority isn’t the only necessity however. It’s vital the data protection lead has a [strong](https://www.financedigest.com/global-shares-slide-dollar-gains-as-rates-rise-on-strong-data.html "Global shares slide, dollar gains as rates rise on strong data") understanding of modern technology as data protection has come a long way since the days of ensuring sensitive documents are locked away safely. Now, something as seemingly innocuous as stray email or a vulnerability on an employee’s mobile phone could result in [data breaches](https://www.financedigest.com/amazons-twitch-hit-by-data-breach-due-to-configuration-error.html "Amazon’s Twitch hit by data breach due to configuration error"). The lead should therefore be capable of having high level [discussions not only with the internal IT team](https://www.financedigest.com/finland-sweden-to-send-teams-to-turkey-to-discuss-nato-bids-haavisto-says.html "Finland, Sweden to send teams to Turkey to discuss NATO bids, Haavisto says"), but also the wider team who use personal devices for work.

**The first steps**

The [data protection lead will be responsible for driving](https://www.financedigest.com/how-alternative-data-drives-e-commerce-success.html "How Alternative Data Drives E-commerce Success") GDPR compliance in every element of the business – from the accountants themselves to HR and admin staff. A firm is only as strong as its weakest link and with the sheer size of the fines in place, it’s not a risk accountants can take. The first step is for the lead to be expertly trained in all aspects of GDPR. They must have an in-depth understanding of the regulations, which can be [gained through available resources on everything from what it means for daily processes to how to react if a data](https://www.financedigest.com/wall-street-gains-dollar-climbs-on-solid-data-debt-ceiling-progress.html "Wall Street gains, dollar climbs on solid data, debt ceiling progress") breach occurs.

The [lead will then be responsible for educating the entire team and answer any questions they may have on changing](https://www.financedigest.com/how-to-lead-organizational-change.html "How to Lead Organizational Change") the way they work to be compliant. It’s vital they are confident in this role, as showing signs of uncertainty could result in more confusion in the long run.

It’s important to note the lead can’t be [expected to instantly make the entire firm](https://www.financedigest.com/german-engineering-firms-expect-hit-from-supply-chain-bottlenecks-next-year.html "German engineering firms expect hit from supply chain bottlenecks next year") compliant on their own. Instead, they must have the authority to make [changes and support management](https://www.financedigest.com/uk-at-forefront-of-fx-management-change.html "UK at Forefront of FX Management Change") in any decisions made. This will then lay the groundwork for compliance come May 25th.

**Why the leader is so vital**

One thing is for certain. GDPR is a complex beast which will take [time for accountancy](https://www.financedigest.com/now-is-the-time-for-banks-to-introduce-intelligent-account-analysis.html "Now Is the Time for Banks to Introduce Intelligent Account Analysis") firms to understand and overcome. [Failing to appoint someone to lead the charge is akin to sending soldiers into battle](https://www.financedigest.com/behind-ftxs-fall-battling-billionaires-and-a-failed-bid-to-save-crypto.html "Behind FTX’s fall, battling billionaires and a failed bid to save crypto") without a strategy – it will likely end in disaster.

For example, the [accountancy firm has one of the most obvious generational divides in any sector](https://www.financedigest.com/demand-from-retail-food-and-beverages-sector-to-account-for-over-70-of-refrigerated-display-cases-sales-study.html "Demand from Retail Food and Beverages Sector to Account for over 70% of Refrigerated Display Cases Sales: Study"). The ‘baby boomer’ [accountants who are coming](https://www.financedigest.com/why-is-accounting-coming-up-short-when-it-comes-to-new-hires.html "Why is Accounting Coming Up Short When It Comes To New Hires?") up to retirement are likely to be averse to a complete overhaul to their working processes. After all, what’s worked for them for the past 40 [years will work for another 12 months before they retire](https://www.financedigest.com/why-companies-need-to-rethink-retirement-tips-for-ensuring-a-happy-life-in-later-years.html "Why companies need to rethink retirement – Tips for ensuring a happy life in later years"), right? Wrong. The worst-case scenario here could be the accountant [ignoring calls](https://www.financedigest.com/ignoring-who-call-major-nations-stick-to-vaccine-booster-plans.html "Ignoring WHO call, major nations stick to vaccine booster plans") to begin securing all client data online and instead continues to keep it written down in a book. If this were to be lost and fall into the wrong hands, the resultant data breach could result in reputational damage and even fines.

Similarly, a millennial accountant may be more attuned to the [latest technology](https://www.financedigest.com/financial-technology-fintech-how-to-navigate-the-latest-trends-and-innovations.html "Financial Technology (FinTech): How to Navigate the Latest Trends and Innovations") and automate large amounts of their workload. However, in their haste to [share vital documents with clients they may inadvertently send](https://www.financedigest.com/flutters-full-year-earnings-turnaround-forecast-sends-shares-higher.html "Flutter’s full-year earnings turnaround forecast sends shares higher") sensitive data to the wrong contact. If managed incorrectly, this type of negligent [data breach could land the practice in hot](https://www.financedigest.com/hot-u-s-inflation-data-reignites-global-selloff.html "Hot U.S. inflation data reignites global selloff") water.

Without a leader to drive the importance of GDPR compliance, firms [run the risk of having sections of the business](https://www.financedigest.com/how-to-use-a-pos-system-to-run-your-business.html "How To Use A POS System To Run Your Business?") assuming it doesn’t apply to them. The vast majority of compliance in the sector is accountant specific – such as MTD and FRS – this isn’t the case with GDPR. With the sheer amount of personal data used by marketing and sales teams, it’s just as important non-client [facing elements of the business](https://www.financedigest.com/saving-on-water-bills-more-than-just-a-drop-in-the-ocean-for-businesses-facing-the-cost-of-living-crisis.html "Saving on water bills: More than just a drop in the ocean for businesses facing the cost-of-living crisis") are clear on their data protection responsibilities as the accountants themselves. The data [protection lead will be that comms link across the whole business](https://www.financedigest.com/fx-hedging-strategies-to-protect-your-business.html "FX hedging strategies to protect your business"), ensuring every employee is singing from the same hymn sheet.

GDPR is the single most significant change in personal [data security](https://www.financedigest.com/cyber-security-data-re-assurance.html "Cyber Security: Data ‘Re’-Assurance") in decades and with risks of reputational damage and hefty fines, non-compliance simply isn’t an option. For firms which are yet to act it is therefore more important than ever to assign a [data protection lead without delay to avoid](https://www.financedigest.com/the-race-to-avoid-data-dinosaur-extinction.html "THE RACE TO AVOID DATA DINOSAUR EXTINCTION") leaving it too late. However, that [lead must be equipped](https://www.financedigest.com/dental-radiology-equipment-market-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Dental Radiology Equipment Market Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") with a full understanding of the intricate requirements of GDPR. Resources are available to support the transition and they must be made use of to [avoid falling foul of GDP compliance](https://www.financedigest.com/how-to-avoid-the-compliance-recruitment-merry-go-round.html "HOW TO AVOID THE COMPLIANCE RECRUITMENT MERRY-GO-ROUND") – failing to do so is akin to accepting failure.


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