Cash fine is expected in up to 2% of the company's turnover, limited to R$ 50 millionSão Paulo, July 1, 2020 - ABES - Brazilian Association of Software Companies, in order to collaborate with the market on the adequacy to the rules of the General Data Protection Law (LGPD), developed, together with EY, an indicator to closely monitor the process adaptation of companies in Brazil. And, according to the LGPD ABES Index, the numbers are alarming: about 60% of companies do not meet the requirements of the new law, which may come into force in 2020.
The LGPD ABES Index is the result of a free online diagnostic tool that allows companies to check their level of compliance with the new data protection law. The platform has information from approximately 900 companies, of which only 40,56% meet the requirements of the LGPD. Among respondent companies, 31.8% have already suffered a violation incident in the last 2 years and 75.5% perform data collection considered sensitive.
“When we look at the numbers of large companies, we are even more concerned: only 38,31% of them are currently in compliance. The President of the Republic sanctioned Law 14.010 / 2020, which provides, among other issues, regarding the postponement of the validity of articles 52 to 54 of the LGPD dealing with administrative sanctions, until August 1, 2021. However, companies need to to adapt quickly because there is a lot to be done ”, explains Rodolfo Fücher, president of ABES, an association that aims to ensure a favorable environment to innovate, dynamic, ethical and competitive globally. Regarding small and medium-sized companies, with 20 to 99 employees, 41,67% of them are in accordance with the LGPD.
Roraima is the Brazilian state with the best compliance rates: 72.73%. In contrast, in Rio Grande do Norte the number is only 8,04%. Among the sectors, the highlight is Consumer Goods, with 46.29%. Agribusiness companies have an index of 33,47%. The Financial sector appears with a 34,70% compliance index, with 49,1% of the companies that answered the questionnaire suffered a violation incident in the last 2 years and 81,1% perform collection of sensitive data.
For Marcos Sêmola, Cybersecurity partner at EY, the tool has a strong educational role in the Brazilian market. “We want to encourage the participation of companies to guide them, free of charge and in complete privacy, on how to comply with the law and the importance of making this adjustment as soon as possible. It is a way of offering a service to society fully connected to our business purpose, which is to build a better business world ”, he says.
ABP LGPD Index
Created for companies that are in the process of adapting their processes to the General Data Protection Law (LGPD) to verify their level of adequacy to the project, ABES and EY created the online tool LGPD Diagnosis. The solution consists of a questionnaire through which companies can self-assess the different points required by law. After filling in, the tool offers a diagnosis as to the degree of adequacy of the company with suggestions contextualized to the result.
To use the tool, it is neither necessary nor possible to send personal or company information, such as name, CPF / CNPJ, among others. After completing the questionnaire, the PDF report is available for download with information regarding the level of suitability and suggestions for improvement - it is not possible to access this document later. The data, sent anonymously, generates the LGPD ABES index on the compliance scenario of Brazilian companies in relation to the new law.
To access the index and make the diagnosis, click on here. The tool is free and available to all companies, whether they are ABES members or not.
About ABES
ABES, the Brazilian Association of Software Companies, aims to contribute to the construction of a more digital and less unequal Brazil, in which information technology plays a fundamental role for the democratization of knowledge and the creation of new opportunities for all. In this sense, it aims to ensure a business environment conducive to innovation, ethical, dynamic and globally competitive, always aligned with its mission of connecting, guiding, protecting and developing the Brazilian information technology market.
Since its foundation in September 1986, ABES has sought to be relevant to its associates and a national and international reference in the technology sector. Currently, the entity represents approximately 2 thousand companies, totaling around 85% of the software and services segment's revenue in Brazil, distributed in 22 Brazilian states and the Federal District, responsible for the generation of more than 208 thousand direct jobs and an annual revenue of the order of R$ 71.5 billion in 2019.
About EY
EY is a global leader in Audit, Tax, Corporate Transaction and Consulting services. Present in more than 150 countries, it aims to build a better business world. Our insights and services help to build confidence in capital markets and economies around the world. In Brazil, we form a team of five thousand professionals and have offices in 12 cities. With the wavespace ™ collaborative innovation center, Cybersecurity Center and Analytics Hub, EY is ready to support companies in the digital transformation and disruptive movements of Industry 4.0.
ABES - Press contacts:
Weber Shandwick Brasil - abes@webershandwick.com
EY - Press contacts:
In Press Porter Novelli - ey@inpresspni.com.br
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