The Global Importance of Cybersecurity and Data Privacy

Cybersecurity and data privacy nowadays are not limited to IT departments as only technical issues. They have progressed into critical strategic, legal, and economic priorities on a global scale.

EU initiatives lead to the adoption of two cornerstone regulations:

• The General Data Protection Regulation (GDPR), enforceable since 2018
• The NIS2 Directive, which reinforced and replaced the original NIS Directive and became applicable in 2024–2025

Together, these regulations are now widely influential for cybersecurity resilience, personal data protection, and digital accountability.

Who Must Comply Today?

Cybersecurity regulations now cover more than government institutions. Compliance is mandatory across a wide range of sectors, including:

• Critical infrastructure (energy, water, transport, healthcare)
• Banking, finance, and insurance
• Telecommunications and Internet Service Providers (ISPs)
• Cloud service providers and data centers
• Digital platforms, e-commerce, and software developers
• Public administrations and municipalities
• Manufacturing, logistics, and supply chain operators

Any organization that relies on data, information systems, or digital services is now legally obligated to:

• Ensure continuous service availability and business continuity
• Maintain data integrity and system accuracy
• Protect information confidentiality
• Detect, respond to, and recover from cyber incidents
• Protect personal and sensitive data across all platforms

Cybersecurity is no longer optional, it is now a non-negotiable legal obligation and a critical board-level responsibility. Immediate action is essential.

What Does Privacy Mean Today?

Privacy goes far beyond only avoiding data leaks. Under GDPR, organizations are required to:

• Lawfully collect and process Personally Identifiable Information (PII)
• Protect personal data from loss, misuse, unauthorized access, and cyber threats
• Demonstrate clear accountability, transparency, and governance
• Uphold fundamental data subject rights, including:
  • The right of access
  • The right to erasure (the “right to be forgotten”)
  • The right to data portability

Failure to implement appropriate data protection measures is not only poor practice but also a direct breach of legal obligations.

GDPR Penalties

GDPR application remains among the strictest in the world:

• Fines of up to €10 million or 2% of global annual turnover for minor violations
• Fines of up to €20 million or 4% of global annual turnover for serious violations

Importantly, the regulation requires that the higher of the two amounts always applies.

For multinational organizations, 4% of worldwide revenue can easily amount to hundreds of millions of euros. In addition to financial penalties, organizations also face:

• Costly legal actions
• Contract cancellations
• Severe reputational damage
• Loss of customer confidence
• Market exclusion and regulatory scrutiny

In today’s digital economy, trust is one of the most valuable assets a company can hold, and a major data protection failure can permanently destroy it.

What Is Breach Notification Duty?

Under both GDPR and NIS2, breach notification is a strict legal requirement depending on the severity of the breach.

A data breach may involve:

• A compromised website or server
• A lost USB drive, laptop, or mobile device
• Stolen databases or exposed customer records
• Inappropriate paper files comprising personal data
• Cloud configuration errors that expose sensitive information

When a breach occurs, organizations must:

• Immediately identify and assess the incident
• Notify competent authorities within 72 hours
• Inform affected individuals where their rights and freedoms are at risk
• Activate incident response, crisis management, and communication procedures
• Minimize technical, legal, and reputational consequences

Delays or failures in breach reporting often lead to penalties greater than those for the breach itself.

Cyber Risk Is Inseparable from Business Risk

Cybersecurity directly affects the central stability and success of every organization. It is closely linked to:

• Financial performance and stability
• Legal and regulatory obligations
• Organization’s image and reputation
• Customer confidence and loyalty
• Investor trust
• Day-to-day business operations and continuity

At the same time, cyber threats are growing faster and becoming more advanced due to:

• The rise of AI-powered cyberattacks
• Increased risks across digital supply chains

As a result, organizations that are not cyber-resilient are no longer only vulnerable; they are automatically exposed to serious disruption, financial loss, and reputational damage.

Conclusion

Cybersecurity and data privacy are essential for survival. Regulations such as GDPR and NIS2 have transformed cyber protection from a technical matter into a legal, financial, and strategic necessity.

A single major cyber incident can:

• Stop operations
• Destroy organizational trust
• Activate devastating financial penalties
• Remove a company from the market entirely

The real question is no longer whether a cyber incident will happen, but whether your organization is prepared when it does.

How PECB Supports Your Cybersecurity and Data Protection Journey

PECB can support you and your organization in strengthening your cybersecurity and data protection capabilities through our globally known training courses, such as:

• ISO/IEC 27001
• ISO/IEC 27701
• GDPR
• NIS2

PECB empowers professionals to design, implement, manage, and continuously improve strong information security and privacy management systems.

About the Author

Vesa Hyseni is a Senior Content and Campaigns Specialist at PECB. She is responsible for creating up-to-date content, conducting market research, and providing insights about ISO standards. For any questions, feel free to reach out to her at support@pecb.com.