The accountability in the General Data Protection Regulation (AVG) is more relevant today than ever, especially as organizations make increasingly intensive use of personal data within digital transformations. It calls for a structural embedding of privacy protection in business operations, supported by a solid Privacy Management System. Without such a system, the risk increases that essential management measures are forgotten, leaving the organization not "privacy compliant" and exposed to substantial fines and reputational damage.

Current context and origins

The principle of accountability is not a new invention: it was already named in the OECDGuidelines on the Protection of Privacy and Transborder Flows of Personal Data (1980) and later in the European Data Protection Directive and the Dutch Personal Data Protection Act (Wbp). In recent decades, however, the concept has tightened considerably, partly due to growing societal concerns about data abuse, AI applications and cross-border data exchanges. The outcome is enshrined in the AVG, which focuses not only on compliance but also on active demonstrability.

Content of accountability

According to Art. 5(1) AVG, all processing must comply with core principles such as lawfulness, purpose limitation, accuracy, storage limitation and confidentiality. Art. 5(2) stipulates that the controller must comply with these principles and be able to demonstrate them. This requires:

• An appropriate data protection policy (Art. 24 AVG) with technical and organizational measures, based on risks and proportional to the nature of the data.

• Contractual assurance of privacy obligations when using processors (Art. 28 AVG).

• Regular evaluation and updating through a PDCA (Plan-Do-Check-Act) cycle.

• Clear internal division of labor and anchoring of responsibilities, including awareness and training programs.

• Oversight by a Data Protection Officer (FG).

• A complete register of processing activities (Art. 30 AVG) made available to the Personal Data Authority (AP) upon request.

Importance for governance and audit

Non-compliance with the AVG can result in penalties of up to 20 million euros or 4% of global annual sales. This makes privacy compliance a material concern within financial reporting and internal audits. Auditors must gain insight into how organizations process personal data, what measures are in place, and where possible deficiencies are. Serious violations can lead to liabilities or provisions in the financial statements, or substantial investments to become compliant.

Data protection frameworks in practice

Privacy Management Software can help establish a "data protection framework" that secures privacy as a continuous improvement process. In modern organizations, this is often integrated with broader risk and compliance platforms, with privacy protection becoming part of enterprise risk management. This allows compliance to be proactively monitored and adapted to new threats, such as deep-fake technology or innovative data linking practices.