Which entity is likely to incur a fine for a gross violation of data protection?

Study for the BAFT Certificate in Principles of Payments Test. Utilize flashcards and multiple-choice questions, with hints and explanations for each query. Prepare thoroughly for your exam!

The likelihood of incurring a fine for a gross violation of data protection is significantly higher for a company with a substantial annual turnover, such as one amounting to €750 million. Such businesses often handle a vast amount of personal data and are subject to stricter regulatory scrutiny under data protection laws, such as the General Data Protection Regulation (GDPR) in the European Union.

Regulatory bodies tend to impose heavier fines on larger corporations because they have the resources to implement comprehensive data protection measures and should be held to a higher standard of compliance. A high turnover generally indicates that the company's operations have a wide-reaching impact, potentially affecting many individuals' data privacy rights.

In contrast, companies with much lower turnovers, individual contractors, and non-profit organizations are typically not in the same financial position to absorb heavy fines and may also not handle the same volume of personal data, reducing their risk exposure in this regard. Therefore, the significant turnover figure associated with the company in question underscores its greater likelihood of facing substantial penalties for serious lapses in data protection compliance.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy