As a Supplier: Data Processor or Controller? Understanding the Risks Involved

Many suppliers, often believe that assuming the role of a data processor rather than a controller can limit their accountability and risk exposure. However, while this decision may seem straightforward, it can potentially introduce more risk than anticipated.

On one hand, data controllers determine the means and purpose of the data processing, consequently bearing primary accountability. On the other hand, data processors act on behalf of the controller, thereby lowering their own level of accountability.

Opting for the role of a data processor entails the acceptance of processing personal data on behalf of the controller, typically a customer, and adhering strictly to their data processing instructions. However, this arrangement can pose significant risks:

• When providing a product or service as a processor that is customized to the customer's needs, accommodating changes in instructions is relatively straightforward.

• Yet, if the product or service offered is standard within the processor's portfolio, they become vulnerable whenever the customer modifies their instructions.

Hence, it is imperative to carefully weigh the decision between assuming the role of a data processor or controller. If both parties prefer to be recognized as controllers, a contract is not necessary. Opting for joint controllership should be a decision made with full awareness of its implications and responsibilities !

Ultimately, understanding the nuances of data processing roles is essential for effectively managing accountability and mitigating risk exposure in compliance with data protection regulations. Eventually, use dedicated tools such as dpO to help you manage your contract compliance.