Data protection contracts can present operational risks if the terms and obligations are not properly drafted or implemented. Common operational risks include:
- regulatory non-compliance: if contracts do not comply with data protection regulations such as the GDPR and the FADP, this can lead to penalties and legal action;
- responsibility for data breaches: if contracts do not clearly define obligations and responsibilities in the event of a data breach, it can be difficult to determine who is responsible for data protection if such a breach occurs;
- difficulties in data management: if contracts do not clearly define the obligations regarding the collection, storage, processing and erasure of data, this can lead to data management problems for the company.
Therefore, it is important to ensure that data protection contracts are properly designed and implemented to minimise the company’s operational risks.
