This is the fourth in a five-part series on the critical questions any enterprise decision-maker should be asking as they prepare to invest in preference management.
Question 1: Are we prepared for the regulatory risks that come with data collection, storage and management?
Preference collection is the critical opportunity to earn consent and protect the right to interact with a consumer. Moreover, appropriate storage and maintenance of such data through an active preference management program protects its legal authority when challenged. These functions are not luxuries – they are table stakes for survival in a world that includes the EU’s General Data Protection Regulation (GDPR) and ePrivacy.
Adopted to strengthen data protection for individuals within EU countries, GDPR is designed to give people more control over their personal data, protect data from the risk of loss and unify regulatory privacy and data requirements within the EU. Central to the regulation is a high standard for consent and fines as great as 20 million euros or four percent of total worldwide annual revenue, whichever is larger.
Less an outlier than a harbinger of a worldwide trend, GDPR means that enterprises must earn provable consent and be prepared to substantiate it quickly or face crippling fines. Any preference management initiative without appropriate compliance oversight and expertise leaves enterprises exposed to unprecedented risk.