Meaning
Statutory provision of the Data Security Law of the People’s Republic of China that defines legal liabilities and administrative penalties for failure to fulfill data security protection obligations. Data security law article 45 targets organizations that neglect to implement required security measures or fail to cooperate with government oversight. It acts as the primary enforcement mechanism for the broader regulatory framework governing information assets.
The article applies whenever a data handler fails to protect information from unauthorized access or theft.
Penalty Framework
Fines for regulatory violations scale based on the sensitivity of the dataset and the impact of the breach. A standard penalty under data security law article 45 targets organizations that neglect to implement required security measures. If the breach involves sensitive information or causes an impact on national security, the monetary penalties increase and can include the suspension of business operations.
These financial impacts are designed to deter negligence in the handling of industrial and personal information.
Remediation Mandate
Authorities typically issue an order for rectification after identifying a security breach or an omission in the protection system. Compliance with data security law article 45 requires an immediate halt to any non-compliant practices once a violation is identified. Failure to complete these actions within the allotted time leads to escalated enforcement actions, including the potential revocation of business licenses.
Corporate Governance
Management teams use the current legal framework to assess their internal risks and allocate budget for information security. Boards of directors use data security law article 45 as a benchmark for assessing their risk management systems. The provision establishes data security as a core legal responsibility that extends beyond technical management.
Regular audits and the appointment of a dedicated data security officer are common responses to the risks outlined in this article.
