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Information security has assumed a primary role in the context of technology and modern business management. As data collection becomes indispensable for companies across all industries, the need to protect this information intensifies even further.
After debates on the topic, Brazil approved the General Data Protection Law (LGPD) . The regulation significantly impacts how public and private companies must treat the data of Brazilian citizens.
Thus, its purpose is to ensure more transparency and protection in the data collection process. Failure to comply with the law may result in fines and punishments .
In this article, we will explore the impact of the LGPD on companies, the legal obligations and the benefits that can be obtained by ensuring compliance with this legislation.
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What is LGPD?
The General Data Protection Law (LGPD) is the Brazilian regulation aimed at protecting citizens' personal data, establishing rules on the collection, storage and sharing of information.
It aims to protect the fundamental rights of freedom and privacy of individuals .
Public and private companies that operate in Brazil and process personal data are subject to this legislation and must adopt more transparent and secure actions in the use of information.
It is a measure to also strengthen legal relations and increase Brazilians' confidence in the processing of their data.
History and context of LGPD in Brazil
The LGPD was sanctioned on August 14, 2018 and came into force in September 2020, in a global context of growing concern about data privacy and information security .
The legislation was inspired by international standards, such as the GDPR (General Data Protection Regulation) of the European Union, and becomes extremely relevant given the scenario that has cyber attacks as recurring threats.
According to a study by FortiGuard Labs, Brazil recorded an incredible 60 billion attempted cyber attacks in 2023 , placing it among the three countries with the highest activity in this type of crime, along with Mexico and Colombia.
The Data Protection Law, therefore, aims to increase security and protect the fundamental rights of freedom and privacy.
Which companies are affected by the LGPD?
All companies that operate in Brazilian territory and that process personal data are subject to LGPD standards, regardless of the size of the company or the sector in which it operates.
This includes everything from small businesses and startups to large corporations, both digitally and offline .
The only exception applies to data processing activities carried out by natural persons for exclusively private and non-economic purposes.
Information security: understanding the impact of LGPD on companies
The General Data Protection Law (LGPD) establishes a new legal framework for information security in companies, imposing obligations and responsibilities, while bringing significant benefits when implemented properly.
What are the legal obligations and responsibilities of business?
The LGPD impacts the way companies collect, store and process personal information. In practice, this means that organizations must implement technical and administrative measures to protect data against unauthorized access, loss, destruction or alteration.
Among the procedures that organizations must adopt are the appointment of a Data Protection Officer , who will be responsible for ensuring compliance with the Law, establishing clear privacy policies and carrying out regular audits.
Who are the data holders?
Data subjects are all people to whom the personal data that is being processed and stored by companies refers.
All of these individuals have the right guaranteed by the LGPD to access, correct or delete their information , as well as to request portability and revoke consent for the use of their data.
In addition to legal compliance, what are the benefits of LGPD for companies?
The LGPD not only brings obligations, but also offers several benefits to companies, which can boost their growth and strengthen their market position by complying with the law:
Increased customer confidence
Companies that adapt to the LGPD tend to gain customer trust , as they demonstrate commitment to data security and privacy.
Improving brand reputation
Respecting LGPD standards significantly contributes to creating a positive image , consolidating your reputation as a responsible, trustworthy and ethical brand.
Reducing security risks
Implementing information security measures can help reduce the threat of cyberattacks and data breaches, minimizing legal and financial risks associated with such incidents.
Long-term cost reduction
Although an initial investment is required to implement the LGPD, it can lead to long-term cost savings avoiding fines and other financial penalties arising from non-compliance.
Responsible innovation
The General Data Protection Law also encourages innovation in companies. It encourages the development of new products and services that respect the privacy of its customers and incorporate information security from the beginning of their conception.
Main challenges in implementing the LGPD
But adapting to new legislation brings a series of challenges for organizations, especially those that do not have a well-defined information security culture.
Adaptation occurs not only in legal terms, but also in adjustments to the entire operational structure . Among the main challenges of this process are:
Adaptation of business processes
Companies need to change current business processes to adapt to the new LGPD requirements. This requires a thorough review of current contracts and how data is collected, processed and stored. It is essential to understand why this information is being collected and why it is necessary for the business to operate.
Investment in information security
To align with the LGPD, significant investments in information security are necessary, including acquiring new technologies , such as firewalls and encryption software training employees and hiring experts in the field.
Risks associated with non-compliance with LGPD
Failure to comply with LGPD requirements exposes the organization to risks such as legal sanctions, fines, and even loss of credibility in the market.
Traffic ticket
Companies that do not comply with the LGPD are subject to significant fines , the value of which varies according to the severity of the infraction. These sanctions can reach up to 2% of the company's revenue, limited to R$50 million per infraction.
Damage to reputation
The reputation of a company that violates LGPD rules can be seriously damaged. This violation can lead to a perception of a lack of ethics on the part of the organization, which would directly impact the trust of customers , business partners and shareholders.
Judicial actions
There is also the risk of facing legal actions brought by dissatisfied data subjects, which could impact the company's image and result in financial costs due to legal proceedings.
Operational losses
Failure to comply with legislation may result in operational losses, such as the prohibition of data processing and the blocking of personal data.
Loss of customers
Another risk is the loss of customers , who may choose not to do business with companies that do not show concern for the protection of their personal data. As a consequence of this movement, there may be a drop in revenue .
Steps to comply with the LGPD
To ensure compliance with the law and avoid sanctions , organizations need to implement a series of structural and essential measures that permeate everything from their culture to the way they operate. Check below for more details:
Conducting data audits
The first step is for companies to carry out data audits. The objective is to map all information collected, stored and processed by the company.
This step includes identifying the data sources, the types of data collected, how they are stored, the purposes of the processing, how they are shared and the security measures implemented in this process.
Implementation of privacy and security policies
After the audit, it is time to implement privacy and security policies. Transparent protocols must be established , including measures to prevent, detect and respond to data breaches. Furthermore, it is important to make it clear what the communication channels are for exercising customer rights .
Team training and awareness
Training and raising awareness among teams is essential. All employees must understand the importance of LGPD and how their actions can affect data security.
Training must address the principles of the LGPD, the responsibilities of employees in processing data, information on how to properly handle personal data and protect individuals' privacy, and procedures for reporting security incidents.
Appointment of a Data Protection Officer (DPO)
Another crucial point is the appointment of a Data Protection Officer (DPO) . This is a mandatory measure for companies that process data on a large scale or that present a high risk to the rights and freedoms of data subjects.
This employee is the expert in the area and acts as a communication channel between the company and the National Data Protection Authority (ANPD), helping to implement LGPD compliance measures.
Compliance with LGPD: count on Skyone’s methodology
information security scenario , adapting to the General Data Protection Law has become a priority for companies of all sizes.
Therefore, Skyone offers a complete and effective methodology to assist organizations in this process.
Thus, the Skyone methodology includes a first phase, called “diagnosis”, and a second phase, called “implementation management”.
The first stage involves a detailed analysis of the company's current status in relation to LGPD standards, culminating in the preparation of an accurate diagnosis.
The next phase focuses on adapting internal processes . The Skyone team implements the necessary measures such as creating privacy policies, defining security controls and carrying out training for employees.
The process aims for continuous adaptation and iterative improvement, preventing the company from possible sanctions and fines.
Conclusion
As we saw in this article, information security is a fundamental issue for companies of any size or sector . And the General Data Protection Law is a milestone in protecting the privacy and security of personal data in Brazil.
Staying up to date with regulations ensures that appropriate data governance practices are in place, strengthens customer trust, improves reputation and reduces the risk of cyber attacks.
In short, information security and LGPD don't just protect data; are vital for business continuity and legitimacy.
Want to know more about information security? Access our special guide on the topic!
