Data governance involves many “roles,” including data owners, custodians, stewards, and controllers. Data processors often operate behind the scenes, but their responsibilities are just as vital to an organization’s data governance framework.
What is a Data Processor?
A data processor processes personal data on behalf of a data controller. Whether they are a legal person, public authority, agency, or other body, they act strictly in line with the data controller’s documented instructions.
In essence, a data processor handles data for another entity. Examples include email marketing platforms, payroll providers, cloud computing services, and IT support companies that access or store personal data as part of their services.
What is the Role of the Data Processor?
Personal data processor responsibilities can include:
· Implementing technical and organizational security measures to protect personal data.
· Ensuring data confidentiality.
· Assisting the controller in meeting regulatory compliance.
· Notifying the controller of any data breaches.
· Responding to data subject requests.
· Maintaining processing activity records.
The data controller/data processor relationship is governed by a binding contract, typically referred to as a “Data Processing Agreement (DPA).” The DPA outlines the scope, nature, and purpose of the data processing.
Data Controller vs. Data Processor: Key Differences
The primary difference between data controllers and data processors is that a data processor’s activities are dictated by the controller’s needs and specifications. It is the controller who makes all decisions regarding the data’s processing.
Data Controllers
Data controllers decide on the why (purpose) and how (means) of processing personal data, and they alone decide the overall processing goals and methods. They have ultimate control and decision-making power over the data.
Their primary responsibilities are ensuring compliance with global privacy laws and information security regulations, including GDPR, HIPAA, and CCPA. They ensure a legal reason exists for using personal information, uphold data subject rights, implement security measures, and maintain accountability.
Controllers are generally legally responsible if something goes wrong with the data, such as a breach or regulatory non-compliance. And they typically face the largest fines or legal consequences.
Examples include companies that collect customer data for sales, HR departments that process employee data, hospitals that manage patient records, and educational facilities that process student information.
Data Processor
Data processors are “service providers” who execute tasks according to a controller’s documented instructions. They do not determine the purpose or means of processing; they follow the controller’s direct instructions. If they were to make independent decisions about the processing’s “why” or “how,” they would essentially become controllers themselves.
Primary responsibilities of data processors include implementing appropriate technical and organizational security measures, aiding the controller in fulfilling their obligations, and ensuring the data’s confidentiality. While typically less liable than controllers when something goes wrong, they can still be held accountable if they breach their contractual obligations or act outside the controller’s instructions.
Examples include cloud storage providers that store an organization’s data, payroll service providers that process salaries for another business, IT firms that provide data archive services, and marketing agencies that send emails on a client’s behalf.
To sum up:
· A controller is the “why” and “how” decision-maker.
· A processor is the “what” or executor who follows the controller’s instructions.
The DPA between a controller and processor clearly outlines the processor’s obligations and the controller’s instructions. Considered a “legal safeguard,” it ensures the processor handles personal data only within the scope of the controller’s authorization. It also helps the parties demonstrate compliance, reducing ambiguity and legal risk during audits and investigations.
FAQs About Data Processors
How does the GDPR define a data processor?
The GDPR defines a data controller as a natural or legal person, public authority, agency, or other body that, alone or jointly with others, determines the purposes and means of processing personal data.
What happens if an organization acts as both a data controller and a data processor?
In this entirely legal scenario, responsibilities are determined by which role the organization is performing for each processing activity. However, if the roles are blurred or poorly documented, there is a risk of being treated as a controller for all data, including the full legal burden when something goes wrong.
Can a data processor outsource its tasks?
Yes, they can outsource tasks to “sub-processors,” but only if the data controller gives prior written authorization. The sub-processor must be bound by the same data protection obligations as the original processor.
