What is a data protection officer and do I need one?
We get asked this question by startups a lot. So much so, that we started offering DPO-as-a-Service (DPOaaS) as a standalone engagement or for companies that subscribe to our Bull plan (this plan includes every - vCISO, Internal Audit, and DPO).
As we kept getting asked about DPOs, who can be one, when do I need one, what do DPOs do - we decided to write this guide to help startup founders and managers better understand how and why to leverage a Data Protection Officer DPO.
A data protection officer (DPO) is a designated individual responsible for ensuring that an organization complies with data protection laws and regulations. They play a crucial role in safeguarding the personal information of customers, employees, and other stakeholders. While the role of the DPO only recently gained much popularity because of GDPR Article 37, the function of privacy leader is not new. In fact, HIPAA in the US has required a “privacy official” since its passing.
We often get asked about who can be a DPO. Some people ask us if a DPO has to be an attorney. The short answer is that there is no specific degree or certification to be a DPO. The main criteria is that a DPO be be informed about data privacy and protection laws.
According to GDPR:
The data protection officer shall be designated on the basis of professional qualities and, in particular, expert knowledge of data protection law and practices and the ability to fulfil the tasks referred to in Article 39.The data protection officer may be a staff member of the controller or processor, or fulfil the tasks on the basis of a service contract.
A DPO's primary tasks include monitoring compliance with data protection laws, advising on data protection impact assessments, training staff on data protection awareness, and serving as the point of contact between the organization and regulatory authorities. They also handle data subject requests and ensure that data breaches are properly reported and managed.
GDPR is the standard in terms of roles for a DPO (from Article 39). There are 5 specific things that DPOs are supposed to do:
Practically speaking, the tasks of a DPO can be broken into two types - one time (initial privacy program setup) and ongoing.
This typically involves going from 0-60 with a data privacy program. The first step is obvious but needs to be stated - appoint a DPO. The DPO can then help define, scope, and map relevant data protection laws to the company. This is strategic. Then, DPOs can create policies and procedures to address the relevant, in-scope controls.
The DPO should then review policies and procedures as well as stay up to date on data protection laws. Additionally, DPOs are best suited to quarterback data protection impact assessments (DPIAs) and privacy impact assessments (PIAs).
Organizations may be legally required to appoint a DPO if they process large amounts of personal data, engage in regular and systematic monitoring of individuals, or process sensitive personal data on a large scale. Even if not legally required, having a DPO can help demonstrate a commitment to data protection and privacy, reduce the risk of non-compliance, and improve overall data management practices.
According to the GDPR rules (Article 37), a DPO is required in the following scenarios:
The most common scenario we see that precipitates a startup needing a data protection officer (DPO) is when the company is expanding operations, product, or go to market into the EU. As a part of this expansion into the EU, startups look to address the control requirements of GDPR (we see companies using Drata and Vanta have an easier time expanding to new controls). One control requirement that is new for these startups is the need to appoint a data protection officer (DPO).
One other common scenario we see does not relate to expansion or GDPR. It is when a company is scaling and building our a more mature data privacy program. As a part of this process, companies look to add data privacy leaders who often serve as DPOs.
Data Protection Officer as a Service (DPOaaS) is a solution that provides organizations with a dedicated, external DPO who takes on the responsibilities and tasks of an in-house DPO. DPOaaS, like vCISO, act as a member of your team.
This service is particularly beneficial for small to medium-sized startups (seed to Series B startups) that may not have the resources, need, or expertise to hire a full-time DPO. By outsourcing this role, organizations can ensure they remain compliant with data protection regulations while focusing on their core business operations. Below are the benefits of DPOaaS:
At Workstreet, we offer a DPOaaS solution tailored to your organization's needs. Our team of experienced professionals is well-versed in data protection laws and regulations, ensuring that your business remains compliant and secure. We have crafted and open-sourced policies, mapped to controls (manually in spreadsheets before tools like Drata and Vanta made this easy), and served as DPOs for startups.
With Workstreet's DPOaaS, you can expect experts that have operated data protection and privacy programs for growth-focused startups. We understand the role of data protection and privacy in the context of startups. If you're looking to add a DPO, Security Yak is a fast way to do it that maximizes your odds of having privacy, tech, and culture fit.
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Regardless of the path you decide to go down to address the needs for a DPO and a mature data protection and privacy function, it is easier to do this sooner rather than later; this is the same with hiring a vCISO and building a mature data security program. If you want to learn more about Workstreet and how we address the needs for a data protection officer with our DPOaaS, reach out today.
