How to Find a Reliable Business Partner to Handle Your Personal Data – A Comprehensive Guide for UK Businesses

Businesses handle vast amounts of sensitive data. Whether it’s customer information, employee records, or financial details, ensuring your personal data is in safe hands is crucial. Choosing a reliable business partner to process, store, or manage your data requires careful consideration.

Building trust with a business partner handling your data goes beyond checking certifications and legal compliance; it’s about establishing clear communication, shared values, and long-term reliability. This guide explores the key steps in selecting a trustworthy data-handling partner, ensuring compliance with UK laws, safeguarding your business against personal data breaches and regulatory penalties, and fostering a secure, trustworthy partnership.

Establishing a Foundation of Trust and Transparency 

Trust is the foundation of any successful business relationship, particularly when it comes to handling sensitive data. Before signing any agreements, engage in open and honest conversations about data security, compliance, and business values. It is important to consider the following:

• Does this partner align with our organisation’s ethical standards and compliance culture?
• Are they transparent about their data handling processes and willing to share relevant documentation?
• Do they have a history of honouring commitments and maintaining long-term partnerships?

A business partner should not only comply with regulations but also demonstrate an understanding of your specific industry’s data protection challenges.

Understanding UK Data Protection Laws and Compliance Requirements

It’s essential to understand UK Data Protection laws. The UK General Data Protection Regulation (UK GDPR), Data Protection Act 2018 and the Privacy and Electronic Communications Regulations (PECR) govern how businesses should handle personal data.

On top of this, there are numerous frameworks that organisations can adhere to in order to further strengthen their governance of personal data. Examples include but are not limited to:

• Lawfulness, fairness, and transparency – Data processing must be clear, justified, and based on a valid legal basis.
• Purpose limitation – Data should only be collected for specific, explicit, and legitimate purposes.
• Data minimisation – Only necessary data should be processed to fulfil the stated purpose.
• Accuracy – Data must be kept accurate and up to date.
• Storage limitation – Personal data should not be kept longer than necessary.
• Integrity and confidentiality – Appropriate security measures must be in place to protect against unauthorised access, loss, or damage.

A reliable data-handling partner must demonstrate full compliance with these principles and be able to provide documentation and evidence of their data protection policies.

Additionally, UK businesses that work with partners outside the UK or EEA must ensure adequate data protection mechanisms, such as Standard Contractual Clauses (SCCs) or UK International Data Transfer Agreements (IDTAs).

Evaluating a Potential Partner’s Data Security Measures

A good business partner should have robust security measures in place to protect your data. Key areas to assess include:

• Encryption: Are they encrypting data at rest and in transit using strong algorithms?
• Access controls: Do they implement role-based access control (RBAC), multi-factor authentication (MFA), and least privilege access policies?
• Incident response: Do they have a well-documented incident response plan (IRP), including detection, containment, eradication, recovery, and post-incident review?
• Data storage: Where is the data stored? UK businesses should prioritise partners who keep data within the UK or EEA to comply with adequacy agreements and ensure legal protections.
• Penetration testing and vulnerability assessments: How often does the company conduct penetration tests and security audits to identify and address vulnerabilities?

You should request security certifications and independent audit reports, such as SOC 2 Type II reports, to validate their security posture.

Checking Industry Certifications and Compliance Standards

Reputable data-handling partners will have certifications that prove their commitment to data security and compliance. Look for partners who hold:

• ISO 27001 – International standard for information security management.
• Cyber Essentials or Cyber Essentials Plus – UK government-backed certification for cybersecurity.
• PCI DSS (if handling payment data) – Ensures secure credit card transactions.
• SOC 2 Type II – Demonstrates rigorous security and data protection practices.
• NHS DSP Toolkit (if working with the NHS) – Ensures compliance with health data protection requirements.

These certifications provide assurance that the partner follows industry best practices and has undergone independent security assessments.

Reviewing Contracts and Data Processing Agreements (DPAs)

When partnering with another business to process data on your behalf, a Data Processing Agreement (DPA) is required under UK GDPR. This contract should outline:

• The scope of data processing – What data is collected, for what purpose, and under what lawful basis.
• Processing Instructions – Written instructions from the controller that informs the processor of how to process personal data.
• Security measures – The technical and organisational security measures used to protect data.
• Confidentiality Clause – The processor should be subject to confidentiality.
• Rights Requests – The processor shall assist the controller in handling rights requests.
• Personal Data Breaches – The processor should inform the controller immediately of a personal data breach and assist in meeting the requirements around breach notification.
• Data Deletion/ Return – How long data will be retained and the process for deletion/ return of personal data
• Audit rights – The ability to review compliance and security measures through audits.

Please note, this list is not exhaustive.

A DPA ensures both parties understand their obligations, minimises legal risks, and protects against liability in the event of a personal data breach.

Assessing Reputation, Reliability, and Track Record

Before entering into a partnership, research the company’s ability to implement appropriate technical and organisational measures through various means:

• Desktop Review: Try and gauge the security measures the organisation has implemented in order to determine if it is appropriate for you.
• Due Diligence Questionnaire: Request that they complete a thorough questionnaire to determine the level of security they have implemented.
• Customer reviews and case studies: Have they worked with businesses in your industry?
• Regulatory history: Have they faced any data protection fines or breaches?
• References: Request testimonials or speak with existing clients.
• Online security forums and news sources: Are there reports of security issues associated with the company?

A reliable data-handling partner should have a strong track record of compliance, transparent data protection policies, and a proactive approach to security.

Ensuring Ongoing Compliance, Monitoring, and Incident Response

Finding a reliable partner isn’t just a one-time process. Continuous oversight is required to maintain security and compliance. Businesses should:

• Conduct annual security audits of their data-handling partners.
• Review incident reports and breach notifications to ensure proper risk mitigation.
• Regularly update DPAs and security policies to reflect evolving processing.
• Ensure partners undergo cybersecurity training and compliance updates.
• Monitor regulatory changes and assess how they impact data processing agreements.

Establishing regular security and compliance check-ins with your partner helps prevent issues and ensures data remains protected.

Conclusion

Choosing a reliable business partner to handle your personal data is a critical decision that requires thorough vetting. By focusing on trust, transparency, UK data protection laws, security measures, compliance certifications, and contractual agreements, you can build a strong, secure partnership.

At Data Protection People, we specialise in simplifying complex data protection issues. If you need guidance on selecting a data-handling partner or ensuring compliance with UK GDPR, get in touch with our expert consultants today.