Description
In the Governance, Risk Management, and Compliance (GRC) industry, a Data Processor refers to an organization or individual that handles personal data for another entity, known as the Data Controller. The Data Processor does not own the data but processes it according to the instructions provided by the Data Controller. This role is crucial for compliance with data protection regulations like the General Data Protection Regulation (GDPR) in Europe, which mandates clear delineation of responsibilities between data controllers and processors. For instance, a cloud service provider, such as Amazon Web Services (AWS), acts as a Data Processor when it stores and processes customer data. Similarly, a payroll service provider that manages employee pay data for a company is also considered a Data Processor. Data Processors must implement appropriate security measures to protect data and may be held liable for breaches if they fail to comply with applicable laws and contractual obligations.
Examples
- Amazon Web Services (AWS) providing cloud storage solutions for businesses.
- Paychex managing payroll and employee data for various companies.
Additional Information
- Data Processors must enter into Data Processing Agreements (DPAs) with Data Controllers.
- They are subject to audits and must demonstrate compliance with data protection standards.