As data security and privacy become an ever-increasing priority for businesses that handle personal data, businesses that process this data are being advised to assess their compliance frameworks anew. New changes set to take effect in May 2019 would force these entities to comply with Hong Kong data protection laws including audits, revised retention policies, breach notification procedures and audited systems – not only large corporations will need to revise systems but even small businesses using technology to learn about individuals will need to reevaluate their data protection practices.
Changes to Hong Kong’s data protection laws will likely have significant ramifications for business operations and consumer trust. Similar to EU GDPR proposals, these proposed amendments aim to enhance individuals’ rights while safeguarding personal information against misuse. They will also impose more stringent sanctions for any who breach these new standards; breaches could incur heavy fines and legal action – creating the potential risk for cyber attacks against companies that have not implemented appropriate safeguards against attacks.
Hong Kong is an essential global financial hub, so maintaining its image as a trusted and secure marketplace is of utmost importance. Thus, proposed amendments to the Personal Data Protection Act (PDPO) have been welcomed as strengthening security while making it simpler for consumers to access and control their own data.
Although these new requirements will bring many advantages, they could also bring unintended side effects. For instance, they will increase the burden on businesses to keep accurate and up-to-date records. Furthermore, new rules restricting personal data transfers outside Hong Kong without express agreement from data users may significantly alter how businesses utilize data, especially those that utilize machine learning algorithms to assess individual’s behaviors or market trends.
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