DPA risks for Companies

I am often asked why companies would 'accept' personal information stored and managed by the individual rather than storing and managing it themselves.  Well, apart from the fact that it is in the individuals interest for their information to be accurate and up to date, there is the cost and risks that companies incur collecting, storing and 'protecting' personal information in compliance with the Data Protection Act 1998.  In 6 months time these risks will increase with the end of the ‘Transitional Relief’ exemption. KPMG have issued a warning reported in Accountancy Age which, coupled with consumers growing awareness of their rights and concerns about privacy and data abuse, should be taken very seriously by any business that values its reputation.