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DSMS according to GDPR: Structure & practical implementation

GDPR-compliant data protection management system: Successful implementation with a system

Whether you are a large corporation or a start-up, anyone who processes personal data must comply with the General Data Protection Regulation (GDPR) comply with. But how can this be implemented in a structured and efficient manner? The answer: a data protection management system (DSMS). In this article, you will learn how to set up a DSMS, which standards are relevant - and how it is implemented in practice. Ready? Then let's go!

Key information on data protection management systems (DMS) in accordance with the GDPR

  • A data protection management system is a comprehensive system of organisational, technical and documentary measureswhich aims to ensure data protection-compliant handling of personal data and systematically implement the requirements of the GDPR and the BDSG.
  • Although the GDPR does not prescribe an explicit DSMS, the Legal necessity and main functions of such a system from various articles of the GDPR, in particular with regard to documentation and accountability obligations and the control of technical and organisational measures.
  • An effective DSMS must be integrated into existing business processes and is not a one-off project, but a continuous process. Continuous improvement process (Plan-Do-Check-Act)which requires adaptation and improvement in order to anchor data protection sustainably in the organisation.
  • The Responsibility for and the development of a DSMS is divided, with management bearing the ultimate responsibility and all employees contributing to compliance in their areas. The structure comprises phases such as planning (inventory, guidelines), implementation (TOMs, training), review (audits, reports) and optimisation.
  • A well-implemented DSMS offers Numerous advantages such as legal certainty, risk minimisation, improved data management and increased transparency. Digital data protection management software can provide significant support by facilitating the documentation, automation and monitoring of data protection processes.n be considered an integral part of AI projects.

Content on the topic of data protection management systems (DMS) in accordance with the GDPR:

What is a data protection management system (DSMS)?

A data protection management system (DMS) describes the entirety of all organisational, technical and documentary measures that an organisation takes to ensure that personal data is handled in compliance with data protection regulations. It serves as a structured guideline for systematically implementing the requirements of the General Data Protection Regulation (GDPR), minimising risks and being able to demonstrate compliance with legal requirements at all times. The GDPR does not prescribe a specific system structure, but does require verifiable data protection measures. In addition, the Federal Data Protection Act (BDSG) regulates specific German requirements. The Legal basis for the implementation of a DSMS are therefore the GDPR and the BDSG.

An effective DSMS is integrated into operational processes and enables data protection to be anchored as an integral part of the organisational culture. It comprises processes, guidelines, responsibilities and technical and organisational measures that are all geared towards ensuring comprehensive data protection.

Aim of a DSMS is not only to prevent breaches of the GDPR, but also to be able to present data protection issues transparently if necessary - for example in the event of an official audit. In this way, a DSMS can also help to clarify or refute possible violations in retrospect.

Legal basis for the implementation of a DSMS

Although a data protection management system is not explicitly required in the GDPR, the legal requirements for the operation of such a system can be derived from various articles and recitals. In principle, it is the responsibility of the company to fulfil the documentation and accountability obligations as well as the requirements within the framework of data processing agreements (DPAs). The following requirements of the GDPR in particular have a significant impact on data protection management:

  • Article 5: This article requires the creation of documentation of processing activities and compliance with the principles for the processing of personal data.
  • Article 28: The creation, agreement and management of order processing contracts is regulated here, which requires a structured approach.
  • Article 32: This article requires the implementation and management of technical and organisational measures to protect personal data.
  • Article 17: The creation and documentation of erasure concepts is necessary in order to fulfil the right to erasure.
  • Article 35: Conducting data protection impact assessments (DPIAs) for high-risk processing activities requires a systematic approach.
  • Article 33: The documentation of data protection incidents is essential in order to fulfil reporting obligations and draw lessons learnt.
  • Article 34: The management of communication with persons affected by data protection incidents must be organised.

The main functions of a DSMS can be derived from these requirements. It is essential to bear in mind that effective data protection management requires cooperation between different areas within an organisation. Professional data protection management systems therefore generally offer flexible control of tasks to ensure this coordination.

DSMS vs. ISMS: What's the difference?

Although both a data protection management system (DSMS) and an information security management system (ISMS) aim to protect important organisational assets, their primary focus is on different areas. A DSMS focuses specifically on the protection of personal data. It implements policies and procedures to ensure compliance with data protection laws (such as the GDPR), protect the rights of data subjects and minimise the risk of data breaches. In contrast, an ISMS takes a more comprehensive view of information security. It aims to ensure the confidentiality, integrity and availability of all types of information - regardless of whether it is personal data, business secrets or other sensitive information. While a DSMS therefore has a data protection focus, an ISMS addresses a broader range of security aspects. In practice, however, the two systems can overlap in many areas and benefit from each other, as effective data protection often also requires good information security.

Integration into the business processes

In order to anchor data protection effectively and sustainably in an organisation, it is crucial to fully integrate the data protection management system (DMS) into the existing business processes. This not only enables the long-term safeguarding of data protection, but also supports the fulfilment of accountability in accordance with Article 5 (2) of the General Data Protection Regulation (GDPR), which is essential for compliance and legal certainty.

A well-functioning DSMS provides employees with a clear framework for the collection, processing and protection of personal data. It regulates both the legal and technical aspects and thus ensures the consistent handling of sensitive information. In contrast to a pure data protection concept, which only describes measures, a DSMS ensures the continuous implementation, monitoring and adaptation of these measures. It is therefore the difference between a one-off plan and its ongoing, dynamic application.

Which organisations need a DSMS?

Basically every organisation that processes personal data needs a data protection management system (DSMS). This is not a question of size or industry, but results from the requirements of data protection laws such as the General Data Protection Regulation (GDPR) in the European Union. As soon as an organisation processes information relating to identified or identifiable natural persons - be it customer data, employee data, supplier data or website visitor data - it is obliged to protect this data in accordance with the legal requirements. Although smaller organisations or associations may not need the complexity of a comprehensive DSMS of large corporations, they too must implement appropriate processes and guidelines to ensure the protection of personal data and comply with legal requirements. A DSMS helps organisations of all sizes to systematically fulfil their data protection obligations and minimise the risk of data breaches and associated sanctions.

Our recommendations for further information

Advantages of a data protection management system

A well-designed and implemented DSMS has a number of positive effects on your company. Firstly, it ensures Structured complianceby helping you to systematically fulfil the complex requirements of the GDPR and other relevant data protection laws and thus Legal certainty to guarantee the quality of our products. Through the early Identification and assessment of data protection risks a DSMS enables the implementation of preventive measures, whereby data breaches and the associated financial and reputational damage are minimised.

In addition, a DSMS leads to a Improved data managementby promoting compliance with storage limits and deletion specifications. The Increased transparency internal data protection processes not only strengthens the trust of supervisory authorities and data subjects, but also underpins your Accountabilityby being able to prove at any time how data protection principles are implemented in your company. The Standardisation of data protection processes and guidelines also contributes to a Increased efficiency in the utilisation of resources. Not to be forgotten is the Sensitisation of employees through regular training, which leads to increased data protection awareness throughout the company. Finally, a DSMS prepares you optimally for an emergency by providing clear Procedures for dealing with data protection incidents and thus enables a rapid and coordinated response. In short, a DSMS is a strategic tool that not only fulfils legal requirements, but also increases efficiency, minimises risks and strengthens the trust of your stakeholders - including a real image boost.

Structure and important functions of an effective data protection management system (DSMS)

An effective data protection management system (DPMS) is the central building block for implementing the GDPR in companies and organisations. It ensures that the handling of personal data is not only legally compliant, but also structured, traceable and sustainable. The structure of such a system should be based on the proven PDCA cycle (Plan - Do - Check - Act) to ensure continuous improvement and adaptation to new requirements.

Setting up an effective DSMS is not a one-off project, but a continuous process that requires adaptation, maintenance and commitment. Organisations that already use other management systems such as ISO 9001 or ISO 27001 can build on existing structures. For organisations that want to take this path professionally, we also recommend working with an experienced data protection officer and using specialised data protection software.

Structure and important functions of an effective data protection management system (DSMS)

Plan - inventory, planning, documentation and structuring

The planning phase involves comprehensively analysing the data protection requirements and creating the framework conditions for the DSMS. A gap analysis is used to take a close look: What is already in place? What is still missing?

  • Data protection guideline and responsibilitiesDefinition of basic data protection principles, roles and responsibilities - including the appointment of a data protection officer (DPO), if required.
  • Data protection organisationEstablishment of an organisational structure with clearly defined tasks and communication channels.
  • Register of processing activities (VVT)Systematic documentation of all data processing procedures in the organisation.
  • Guidelines and proceduresCreation of internal guidelines on the processing of personal data, for example on dealing with requests for information, data subject rights or data protection incidents.
  • Threshold analysisInitial risk assessment to decide whether a data protection impact assessment is necessary.
  • Erasure conceptDefinition of retention periods and clear guidelines for data deletion in compliance with data protection regulations.
  • Risk ManagementIdentification and assessment of potential data protection risks as a basis for suitable protective measures.

Do - realisation and technical protection

In this phase, the planned measures are prioritised and implemented:

  • Technical and organisational measures (TOMs)Implementation of security measures such as encryption, access controls or pseudonymisation.
  • Data Protection Impact Assessment (DPIA)Implementation for high-risk processing (e.g. video surveillance), including documentation and derivation of measures.
  • Training and sensitisation of employeesImplementation of regular, target group-orientated training to promote data protection awareness and strengthen the reporting culture.
  • Use of data protection management softwareSupport implementation and monitoring with digital tools for centralised management and automation of data protection processes.
  • Integration into business processesAnchoring data protection in existing workflows, systems and project structures.

Check - Continuous improvement, monitoring, testing and evaluation

The review of the implemented measures is essential for the effectiveness of the DSMS:

  • Internal Audits and data protection controlsRegular audits to ensure compliance with internal guidelines and legal requirements.
  • Activity report of the Data Protection OfficerSummary of the measures taken, findings and recommendations for the further development of data protection.
  • Monitoring of the VVTOngoing updating and monitoring of documented processing activities.
  • Evaluation of the training coursesReview the effectiveness of training measures, if necessary with tests or feedback loops.

Act - optimisation and further development

The results from the check phase are incorporated into specific improvement measures:

  • Adaptation of guidelines and procedures: In the event of changes in the company or new legal requirements.
  • Updating the deletion concept and TOMsContinuous adaptation to technological developments and new risks.
  • Derivation of measures from audits and reportsImplementation of recommended corrective measures and expansion of the DSMS.
  • Promotion of a data protection cultureDevelopment of guidelines to continuously strengthen data protection as part of the corporate culture.

Who is responsible for the data protection management system?

Responsibility for the data protection management system (DMS) is not a task that can be borne in isolation by a single person or department. Rather, it is a Shared responsibility within the entire organisation. The Management Board bears the ultimate responsibility for implementing and maintaining an effective DSMS. It must provide the necessary resources and promote a culture in which data protection is a high priority. Operational responsibility often lies with the Data Protection Officer (DPO)if one must be appointed or has been appointed voluntarily. The DPO monitors compliance with data protection regulations, advises the organisation and is the point of contact for supervisory authorities and data subjects. However, there are also all employees responsible for compliance with data protection guidelines and procedures in their respective areas of responsibility. Specialist departments such as IT, HR or marketing play a decisive role in the implementation of specific data protection measures. Clear Competences and responsibilities must therefore be defined and communicated as part of the DSMS to ensure that data protection is taken into account in all processes.

Digital data protection management: how compliance software supports the development of a DSMS

The introduction of a digital data protection management system (DPMS) is an effective way for organisations to implement the requirements of the GDPR in a structured, efficient and comprehensible manner. Modern data protection or compliance management software provides the right technological basis for this. It not only supports the documentation of data protection-relevant processes, but also enables their automation, control and continuous improvement.

A central element of such software solutions is the structured mapping of all data protection requirements: These include, among other things Register of processing activities (VVT)which technical and organisational measures (TOMs), Data protection impact assessments (DPIA)that Management of data subject rights and the Documentation of order processing. Templates, industry-specific data types and standardised forms for threshold value analyses of the DPIA make implementation considerably easier and ensure that even complex requirements can be mapped in a practical and comprehensible manner.

Another advantage lies in the Automation of recurring tasks. Data protection processes can be mapped with digital workflows, responsibilities can be assigned, deadlines can be set and processing statuses can be documented. Automatic notifications and task management functions ensure that no deadlines are missed and no processes are overlooked - for example when processing requests for information or reviewing contracts with external contacts.

Good data protection software also supports a Differentiated role and rights managementwhich can be used to clearly delineate responsibilities. For example, internal specialist departments, external data protection officers and the management can be specifically integrated and their respective tasks documented in an audit-proof manner - an important contribution to accountability in practice.

Last but not least, a professional solution offers comprehensive Reporting and audit functionswhich can be used to visualise the implementation status of data protection at the touch of a button - whether for internal audits, activity reports or inspections by supervisory authorities. Regular content updates ensure that new legal requirements (e.g. GDPR, TTDSG or NIS2) can be promptly incorporated into the processes.

In particular, organisations that already operate other management systems such as an ISMS (information security management system) benefit from the scalable and modular structure of many data protection tools. They can be seamlessly integrated into existing system landscapes and thus contribute to a holistic, seamless compliance approach.

A digital DSMS creates transparency, reduces the effort required for manual documentation and sustainably strengthens the legally compliant implementation of data protection. With the right software, data protection management becomes an integral part of corporate management - structured, traceable and future-proof.

Your path to implementing a digital DSMS

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Further Information

Common mistakes and how to avoid them

Implementing a data protection management system (DPMS) is a crucial step for any organisation that processes personal data. However, the path to an effective DSMS is often paved with stumbling blocks. One common mistake is the Insufficient involvement of the managementg. Without full commitment and the provision of resources from the top, a DSMS runs the risk of remaining a toothless paper tiger. Our recommendation: Ensure clear communication of the necessity and benefits of a DSMS at all levels and gain the active support of management.

Another common mistake lies in the superficial or incomplete inventory and documentation of the processing activities, among other things. If you do not know exactly what data is being processed where, you cannot take appropriate protective measures. "No data protection without proof" is the golden rule. This applies to all aspects of data protection documentation. Our recommendationMaintain detailed and continuously updated documentation of all processing activities in accordance with Article 30 of the GDPR. Maintain comprehensive and traceable documentation of all relevant aspects of your DMS, from policies and procedures to consents and data breaches.

Often the Employee training neglected. Data protection is not just an IT or legal matter, but affects everyone in the organisation. Uninformed employees can unintentionally cause data protection breaches. Our recommendationImplement regular and target group-specific training and sensitisation measures on the subject of data protection.

Another critical point is the Lack of consideration of risks and impact assessments. Data protection is not a static state, but requires continuous evaluation and adaptation of measures. Our recommendationCarry out regular risk assessments and, if necessary, create data protection impact assessments to identify and minimise potential risks at an early stage.

Equally problematic are lack of responsibilities. If nobody is responsible, nothing happens. Clear roles create clarity. Our recommendationDefine clear responsibilities and areas of responsibility within the DSMS. Ensure that each relevant function in the organisation has a clear role in the data protection process.

Once set up, never looked at again? A DSMS is a Continuous improvement process! Our recommendation: Establish a continuous improvement process (CIP) for your DSMS. Review and optimise your measures regularly to ensure that your DSMS remains effective and adapts to changing conditions.

Finally, the Review and update of the DSMS missed. Once implemented, a system is not forever. New technologies, changes in business processes or changes in legislation require continuous adaptation. Our recommendationEstablish regular audits and review mechanisms to ensure the effectiveness of the DSMS and adapt it if necessary.

By avoiding these common mistakes, you lay the foundation for a robust and effective data protection management system that not only complies with legal requirements, but also strengthens the trust of your customers and partners.

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Further Information

FAQs on the data protection management system

No, but it is the most effective way to systematically implement and demonstrate the obligations of the GDPR.

The costs vary depending on the size and complexity of the company - from internal solutions with templates to certified tools.

Between a few weeks and several months - depending on the maturity level of data protection in the company.

No, but certification can strengthen trust and raise data protection to a higher level.

The company management bears overall responsibility - often supported by data protection officers and a data protection team.

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Conclusion: Systematic data protection brings security and trust

Compliance with the GDPR is essential for any organisation that processes personal data. A well thought-out data protection management system (DMS) provides the necessary framework for this. It is more than just a collection of guidelines; it is a living system that establishes data protection as an integral part of the organisational culture. Through the structured implementation of legal requirements, the continuous review and adaptation of measures and the use of suitable tools, organisations can not only avoid costly breaches, but also strengthen the trust of their customers and partners. A DSMS is therefore a strategic instrument for successfully managing data protection and securing long-term competitive advantages.

Caroline Schwabe
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