SC

Home Links

Services

Contact Us

  • phone-icon+40 749 110 187
  • mail-iconoffice@simplecompliance.eu

gap analysis

GAP ANALYSIS

We offer you an X-ray of the product or app (gap analysis) compared to European regulations’ standards

What is a GDPR Gap Analysis

A GDPR gap analysis is essentially a systematic review to pinpoint where your organization's data handling practices might not meet the standards set under the General Data Protection Regulation. It's a strategic move to discover exactly where you're at versus where you need to be for GDPR compliance.

Why is it crucial? Well, for starters, GDPR is a big deal for anyone dealing with EU citizens' personal data, and aligning with its rules is non-negotiable. A well-conducted gap analysis will reveal the critical adjustments your organization must make.

It's about ensuring you’re on the right track with data processing permission, safeguarding data with solid security, and being crystal clear about how you use data. Skipping on these could not only hit you with heavy fines but also dent your reputation.

So, think of gap analysis as your roadmap to staying in line with GDPR and maintaining trust with your users.

What are the Components of a GDPR Gap Analysis

  • ➤Evaluating data processing practices: Scrutinizing how personal data is collected, stored, and processed including the examination of data handling, retention policies, and data transfers

  • ➤Reviewing privacy policies and consent mechanisms: Ensuring that privacy notices and consent forms comply with the GDPR

  • ➤Examining data breach response plans: Evaluating the organization’s preparedness and response strategy in the event of a data breach

  • ➤Identifying Current Data Protection Measures: Gather detailed information on the current practices and security measures protecting personal data

  • ➤Defining Desired GDPR Compliance Level: Establish a clear understanding of the GDPR requirements and map them to the organization's operations to set a compliance benchmark

  • ➤Identifying Gaps: Compare the current state of data protection measures to the desired level of GDPR compliance to identify areas that fall short

  • ➤Developing an Action Plan: Create a comprehensive plan detailing the steps needed to bridge the compliance gaps identified

What is an AI Act (AIA) Gap Analysis

A gap analysis, in the context of the AI Act, involves evaluating an app or product to determine where it may fall short in complying with the AI Act's requirements.

This process includes a systematic review of the AI-related aspects of the app or product to ensure it aligns with the risk categorization and adheres to established standards for handling AI systems.

What are the Components of an AI Act Gap Analysis

  • ➤Identifying the Risk Level: It's essential to determine the risk category of the AI application as described by the AIA. AI systems are divided into four risk categories: unacceptable, high, limited, and minimal risk. The risk level dictates the extent of regulatory compliance required. For instance, high-risk applications must undergo conformity assessments, while unacceptable risk AI systems are outright banned

  • ➤Assessing AI System Components: After risk categorization, the analysis focuses on technology components and their interactions. The hazard drivers could include technical aspects like model opacity, data biases, and human-machine interaction issues. Assessing these factors involves examining the AI's design, functionality, coding, and supervisory protocols to estimate the risk magnitude

  • ➤Evaluating Impact on Fundamental Rights: The gap analysis should also incorporate a fundamental rights impact assessment, as required by the AI Act for high-risk systems. This involves analyzing how the app or product may affect citizens' fundamental rights and detailing mitigation plans

  • ➤Comparing with AIA Requirements: Once the risk assessment is complete, you must compare your app or product with the specific AIA requirements to identify gaps. For high-risk systems, this could involve analyzing the quality of the datasets used for training and validation, as these have substantial data protection implications

  • ➤Developing an Action Plan: The final step of the gap analysis is to create an action plan to address the identified compliance gaps. This typically involves developing or refining internal policies, adjusting technical aspects of the AI systems, and implementing measures that ensure ongoing compliance with the evolving AIA guidelines

Services

Compliance with GDPR is essential for all companies

Any company in the world that intends to activate on EU territory or targets EU citizens is obliged to comply with the GDPR and the AI Act under the penalty of fines of up to 37M euros or 7% of the global turnover

Frequently Asked Questions

Why do companies outside the EU need to comply with the General Data Protection Regulation (GDPR) ?

➤

Companies outside the EU need to comply with the General Data Protection Regulation (GDPR) if they offer goods or services to individuals in the EU or monitor the behavior of individuals in the EU.

There are several reasons for this:

  • Extraterritorial Scope: GDPR has an extraterritorial scope, meaning it applies to companies outside the EU if they process personal data of individuals in the EU in connection with offering goods or services, regardless of whether a payment is required.
  • Data Protection Standards: GDPR sets high standards for data protection and privacy rights. It requires companies to implement measures to protect personal data and provides individuals with rights over their data, such as the right to access, rectification, and erasure.
  • Data Transfers: GDPR restricts the transfer of personal data outside the EU to countries or organizations that do not provide an adequate level of data protection. This means companies outside the EU must ensure they have appropriate safeguards in place when transferring data from the EU.
  • Reputational Risks: Non-compliance with GDPR can damage a company's reputation and lead to loss of customer trust. With increasing public awareness of data privacy issues, consumers are more likely to choose companies that demonstrate a commitment to protecting their privacy rights.
  • Legal Consequences: Failure to comply with GDPR can result in significant fines and penalties. Companies may face fines of up to €20 million or 4% of their global annual turnover, whichever is higher, for serious violations of the regulation.

Why do companies outside the EU need to comply with the AI ACT (AIA) ?

➤

Companies outside the European Union need to comply with the AI Act due to its extensive extraterritorial scope and the significant implications it has on businesses globally.

Here are the key reasons for compliance:

  • Extraterritorial Scope: The AI Act extends beyond the boundaries of the EU, much like the GDPR, affecting any business that provides goods or services to individuals in the EU or whose AI systems' output is used within the EU, regardless of the company's location or whether it has a physical presence there
  • Alignment with EU Standards: The act sets forth stringent regulations to ensure AI systems adhere to fundamental rights and EU values. Non-EU companies engaging with the EU market must align their AI applications with these standards to avoid legal barriers to market entry and maintain competitiveness
  • Risk Mitigation: Compliance with the AI Act is crucial for mitigating risks associated with AI governance, including data protection, transparency, and accountability. Companies must safeguard against the potential misuse or negative impact of AI technologies
  • Market Access and Adoption: Adhering to the AI Act's statutes will likely influence the adoption and market success of AI products within the EU. Businesses that preemptively integrate these regulations into their processes can gain a competitive advantage and build customer trust .
  • International Influence: The EU's regulations often set precedents for global standards. Companies complying with the AI Act will likely be better prepared for future AI-related regulations in other countries as standards internationally may converge to mirror the EU's approach
  • Legal and Financial Consequences: Failure to comply with the AI Act can result in substantial fines up to 7% of global annual turnover, creating a powerful financial incentive for companies to comply to safeguard against these penalties
  • Reputational Impact: Non-compliance can damage a company’s image, leading to potential loss of goodwill and consumer trust—especially critical in a world increasingly aware of ethical AI concerns