Commun ue ISSUE NUMBER 120 | MAY 2018
WHAT’S INSIDE
AIPC 2018: Strategies for a Changing World! PAGE TWO
London 2018
Punta del Este Uruguay Facilitates International Interaction in Hosting China-LAC Business Summit
MCEC Embraces the Customer Journey
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PRESIDENT’S REMARKS
Impact of Geopolitics on Global Events: Is There Anything to Fear? Major trade agreements are under threat or being rewritten as trading bloc partners jostle for a new global order. The first salvo appears to be a looming China – US trade war, and with this development some of the dire predictions about global trade relations seem to be coming to pass. Where does that leave those of us who are in the business of facilitating related events such as international conferences, corporate events and exhibitions? Our business prospects are invariably tied to the state of the economy. During the 2008-9 Global Financial Crisis, for example, corporate business in many parts of the world took a significant dive, although many would argue that that was as much due to concerns about appearances as to any real cutbacks. Still, thriving businesses do tend to be more likely to invest in events than those who see an uncertain future – and these are a big part of our business. Why should we be more confident this time? I’d suggest there are at least three reasons; Firstly, in spite of all the political turmoil, the global economy seems to be moving along well in most parts of the world. Investment is strong, unemployment is low and business prospects appear to be at their strongest levels in many years. There is a real sense of momentum which will take some serious shocks to derail, and beyond a lot of posturing, there don’t seem to be any such shocks on the immediate horizon. Secondly, even the confusion surrounding changing trade relations seems to result in more meetings activity, as potentially impacted groups spend more time trying to sort through the implications and strategies required to deal with them.
“We may never reach a point where we are impervious to the impacts of global realignments, but our industry has demonstrated that we are certainly resilient under our untoward circumstances.”
Rather than succumbing to apathy or inactivity, the new challenges seem more likely to result in new relationships and work-arounds that will enable trade to go on in a modified form. This means that continuing engagement must prevail and which in turn means more activities of the sort we host in our facilities. And lastly, according to a number of renowned economists that have shared their views with us over the years, globalization seems to be a growing factor that is largely immune to individual policy decisions by various countries. The power of global expansion seems to be the primary driving force in many areas of business, and has been largely undiminished by interim events, which suggests this will continue into the future. We may never reach a point where we are impervious to the impacts of global realignments, but our industry has demonstrated that we are certainly resilient under our untoward circumstances. The more international business becomes, the less likely we are to be disrupted by temporary, policy-driven anomalies. That’s good for the global economy – and for us as well.
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London JULY 1- 4
AIPC 2018: Strategies for a Changing World! As part of an ongoing series of themes responding to an industry facing continuous and accelerating change, AIPC 2018 will continue to pursue the big questions of strategies and tactics in the midst of evolution – and to combine the broader views of outside experts with the specific needs of venue management. | CONTINUED ON PAGE 2
Aloysius Arlando, AIPC President
London 2018
THE AIPC ANNUAL CONFERENCE KEYNOTES
AIPC 2018: Four Important
Keynotes Set the Tone for This Year’s Annual Conference Theme
| CONTINUED FROM PAGE 1
Under this year’s theme of “Strategies for a Changing World!” our program will look at three of the biggest factors re-shaping our environment and seek a range of opinions and insights into what the implications may be and how we can best respond – and as always we will have some of the best available expertise to stimulate our thinking!
First, as global events continue to evolve at a dazzling speed we are pleased to welcome back Dr. Razeen Sally, back by popular demand – our highest-rated speaker from last year and someone in a unique position to sort through how the potential impacts of major policy and political shifts then have actually translated into reality after a year of unprecedented change. This second phase presentation Dr. Razeen Sally will pick up where we left off in Sydney and move through Co-Director of the European the areas of most concern / opportunity to centres along Centre for International with more specifics about the practical realities of change Political Economy; Associate now that the direction of so many factors has started to Professor at the Lee Kuan Yew School of Public Policy actually play out. at the National University of Singapore
Dr. Sally has over twenty years’ experience as a tradepolicy expert and advisor. He has researched and
published widely on trade policy, taught trade-policy courses in universities and conducted trade-policy training programs (aimed at bilateral and multilateral) in several countries. He helped to found a major trade-policy think tank, the European Centre for International Political Economy, in Brussels and has extensive experience in consulting for governments and international organizations on trade issues. He chaired the World Economic Forum’s Global Agenda Council on Competitiveness, and coordinated major WEF reports on trade and competitiveness and the competitiveness of cities. He is also a member of the Legatum Institute’s Special Trade Commission, which advises the British government on Brexit trade strategy and trade policy-making between the UK and the EU.
What a City! What an Opportunity! This year’s AIPC Annual Conference destination is one of the world’s most visited cities, bursting with culture, fine food, entertainment and breath-taking sites. London has something for every-one; 2000 years of history has made the ‘Big Smoke’ deeply cosmopolitan and exotic; teeming with shops, art galleries, museums, restaurants and attractions that are constantly changing. No matter how many times you visit, there’s always something new in store, and the AIPC Social Program has been developed to provide a sampling of what the UK capital has to offer.
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SATURDAY JUNE 30 | INFORMAL EARLY WELCOME EVENT
SUNDAY JULY 1 | OUR OFFICIAL WELCOME RECEPTION: SEE LONDON DIFFERENTLY!
With views towards Canary Wharf, the O2 and the Emirates Air Line Cable car, our welcome reception will be held on the Upper Deck Bar and Terrace at the Novotel, located in ExCeL’s home at the heart of London’s Royal Docks area. Once the heartland of the capital’s industry, London’s Royal Docks were built in the mid-19th century – a marvel of Victorian engineering that covers an area the size of central London. Now closed to commercial vessels, this unique waterfront setting has been turned into a new destination for London – a place of culture, fun, cuisine and sport – with space for business, creativity and waterside living.
Crossing the Thames on the Emirates Air Line Cable Car, we’ll start our reception with a unique view of London from nearly 90ft in the air, taking in some of the sights of the capital’s most iconic buildings and attractions including Canary Wharf, the Olympic Park and the Royal Greenwich observatory. At North Greenwich Pier, we’ll then join the Silver Sturgeon, a 21st century contemporary ‘River Yacht.’ Aboard this vessel, we will catch up with colleagues and experience a stunning private evening charter along the Thames, taking in the iconic sites of London’s riverscape – from the Houses of Parliament to the London Eye – and enjoying delicious food and drink en route.
Simon Walker Senior Partner, Candover Consulting and Visiting Executive Development Fellow, Henley Business School
Thomas Emanuel Director of Business Development for STR
Roger Martin-Fagg Director, Martin-Fagg Associates
Secondly, and in response to the major newly emerging issue identified as “The War for Talent” we will be getting the latest on the future prospects for accessing, orienting and training a new generation of staffing at a time when not only have the stakes gone up – with talent at an all-time premium – but we are looking at a new generation of workforce with very different interests and expectations than many of us have been used to. Simon Walker is an expert in future of work and leadership; his particular interest is the impact of technology on the world of work and business, and in how this affects behaviours, effective leadership and organisational design.
He is also an expert on Generational Diversity (the differing expectations, preferences and attitudes of different generations) and has researched this area widely. Simon was a co-founder of the consultancy ‘talentsmoothie’ and had previously built a successful research based leadership consultancy which focused on developing emotional intelligence. His business leadership experience includes being CEO of Challenge Business, organisers of high profile sponsored events around the world, and a Visiting Executive Development Fellow at Henley and Southampton Business Schools.
Third, and in response to a “top of the cycle” period that has brought into new focus the ever-changing interface with our respective hotels communities, we will be getting all the latest details on the accommodation sector from a global expert, Thomas Emanuel, Director of Business Development for STR. Based in London, he leads a team focused on driving business with Industry Partners; he has spent his entire career in the hotel industry, moving from senior level positions with global brands to the Deloitte HotelBenchmark team and subsequently to STR where he drove a rapid expansion outside North America.
Throughout his time with STR, Thomas has gained a wealth of experience working with hotels, investors, developers, consultants, banks, governments, destination management companies and many others. He has worked in over 40 countries across 6 continents and regularly speaks at major hospitality conferences around the world. He is also frequently interviewed for his insights on the hotel industry by news outlets including CNN, CNBC, Bloomberg, as well as various tourism and hospitality publications.
Finally, at a most practical level, we face the question of resolving these overarching factors into the kinds of specific strategies and tactics required to chart a course for our own business activities and priorities – in other words, business planning appropriate to the complexities of a more challenging operating and market environment. For this, we will be accessing the talents and insights of Roger Martin-Fagg, a leading expert in business process with particular knowledge around the venue industry
all aspects of economics. He designed and ran the postgraduate diploma in Airline Management for British Airways before joining Henley Management College in 1987, where for 21 years he taught senior managers macroeconomics and strategy.
Roger is an economist turned strategist who began his career in the New Zealand Treasury, then moved into Airline Business Planning and teaching postgraduates
Roger is an independent teaching consultant. He has been external examiner to Bath University, worked with the Bank of England, three of the major UK clearing banks, advised a major London recording studio for 15 years, and regularly talks to SME owners in the UK and Europe about economic trends. He is a visiting fellow to Ashridge, Warwick and Henley business schools.
MONDAY JULY 2 | EXPLORATION ON YOUR FREE NIGHT
TUESDAY JULY 3 | AIPC APEX AWARD PRESENTATION AND DINNER
Equipped with a range of suggestions and the whole of London at your disposal via easy transportation links, here’s your chance to plot a course for your favourite attraction – or simply explore one of the world’s most exciting walkable cities at the perfect time of year!
The Awards presentation and dinner will take place at the QEII Centre in the heart of Westminster. Less than a five minute walk from Big Ben and the Houses of Parliament and located directly opposite Westminster Abbey, the location of the QEII is steeped
in history. Following the awards, we will enjoy a buffet dinner, combining fresh, sustainable and seasonal ingredients, courtesy of QEII Taste.
... AND THAT IS NOT ALL Beyond our formal events, delegates can also explore the infinite possibilities of London and the area local to ExCeL by visiting www.excel.london/visitor/after-hours
© Pawel Libera/London and Partners/visitlondon.com PAGE THREE
AIPC Academy Team Challenge Results Illustrate How Ingenuity is Alive and Well in Our Industry! Each February for the past 12 years the AIPC Academy has brought together participants from a wide range of regions and disciplines to learn and share information about the best practices and strategies for convention centre management in today’s increasingly complex industry environment. But it’s not just about information exchange – a key feature each year has been the Academy Team Challenge, in which participants team up to address a challenge that requires them to draw on their learnings and experiences in responding to one of the kinds of management issues that impact centres today.
This year’s Team Challenge focussed on some very specific, if hypothetical, issues – and the results showed innovation and the application of practical experience in ways that suggest a bright future for our industry! One challenge was that of addressing a situation where a major event was coming to the destination and the owner wanted to ensure that full advantage was taken of the opportunity this presented for addressing local economic priorities. Amongst the strategies the two teams on this topic developed were: > To use the event as leverage to enhance needed facilities that would ensure a marketability legacy after the event was over; > Incorporate community enhancements such a solar panels and a roof garden to enhance inclusivity for locals; > Calculate and communicate the incremental economic benefits that growing event business would create as a result of the major event;
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> Use the event to attract the attention of potential investors and show off what the city had to offer as opportunities; > Create new, related infrastructure (i.e., technology) that could subsequently be shared with other institutions and the community; > Create partnerships with major suppliers that would extend beyond the initial event period.
The second challenge was that of a facility over 20 years old that is in urgent need of a significant upgrade in order to remain competitive. However, the owner is reluctant to invest as they have other spending priorities. Teams on this challenge proposed; > Getting solid economic impact and community benefits data (jobs, revenues) for use in the campaign for investment; > Using client testimonials as to current shortcomings and the beneficial business effects new investment would create; > Create a “Community Charter” of promises related to redevelopment, including new access, easing construction impacts and sustainability; > Showing attention to cost effectiveness through partnerships, efficiencies and coming up with some interim “quick fixes” to enhance business; > Create an attitude of “pride” in the facility by using staff engagement, local supporters as advocates.
The final challenge was a bit different – to address a situation where the city had just lost a major employer and is going to be more reliant on generating visitors while at the same time helping create new skills and employment to take up the slack.
Again a raft of great ideas included: > Developing a broad coalition of community interests to work with the centre on strategic planning; > Incorporating local businesses into the service delivery model to increase employment and business activities; > Creating shared training facilities (i.e., a tech hub) in the centre that could also serve local retraining uses; > Making the training facilities a USP to attract more clients; > Making the sales and research functions of the centre available to assist local businesses access potential new markets. Every one of these ideas has real merit – and many are just begging to be developed in a real-life context! Congratulations to this year’s AIPC Academy graduates – and to all those from previous years who came up with similarly insightful concepts!
JMIC CASE STUDY:
Punta del Este Uruguay Facilitates International Interaction in Hosting China-LAC Business Summit Editor’s Note | One of the events put forward as a Case Study under the program supported by the Joint Meetings Industry Council is the hosting by the Punta del Este Convention and Exhibition Center of the China-LAC Summit – a fine illustration of the role played by centres in facilitating important international exchanges and business development programming.
The China-LAC Summit is a yearly event organized by the China Council for the Promotion of International Trade (CCPIT) and the Inter-American Development Bank (IDB) and is the most important entrepreneurial event between companies from China and the Latin American and Caribbean countries. The Punta del Este Convention and Exhibition Center Uruguay was honored to host the 11th edition of the summit that took place in Uruguay as a token of the longstanding trust and understanding that exists between the two nations. The initiative is part of China’s 2015-2019 Cooperation Plan for Latin America, promoted by the Community of Latin American and Caribbean States (CELAC). China-LAC 2017 brought together hundreds of companies from different sectors and industries in China, Latin America and the Caribbean, with the objective of strengthening business relations through commercial exchange. Features that each partner bring to the table include: FOR CHINA
The goal was to have at least 500 companies between China and Latin America participating of the event, and the result exceeded that by far with 2315 attendees and 172 exhibitors and 1200 one-on-one business meetings, being this the edition of China-LAC held in Latin America with the largest attendance ever. In addition to outstanding attendance and interactions, a number of key outcomes accompanied this event in Uruguay. There were two agreements of understanding signed with the China Council for the Promotion of International Trade (CCPIT) – one with the Uruguayan Exporters Union, and the other one with the Commercial Chamber of Uruguayan Products – as instruments in getting closer to one another to do business in the future. When Uruguay was announced as the next destination for the event, a series of agreements were signed which led to a change in the relations between the two countries, that went from being a bilateral commercial relation, to being an strategic association, and the bases for a future free trade agreement were set. Other new initiatives announced during the event in Uruguay included:
> Growth rates significantly higher than the world’s average.
> The creation of the Konfusio Institute, a joint effort of the Universidad
> Among the world’s main exporters and importers of goods. > Strengthened middle class.
de la República of Uruguay and the Kindao University in China to promote the learning of the language and the Chinese Culture.
> Key partner for promoting worldwide trade.
> A memorandum of understanding to celebrate 30 years of
FOR LATIN AMERICA AND THE CARIBBEAN
commercial relations between Uruguay and China by enabling Chinese airlines and aircrafts to fly to Uruguay directly or through other hub destinations.
> It is one of the regions with the most dynamic economy in the world.
> An announcement by Liffan to start constructing electric
> Great opportunities for complementarity.
> There are over 600 million consumers in the region. > This area represents an important reserve of energy and minerals, and it includes the world’s main exporters of food products. According to information provided by the World Economic Forum, China is already the main commercial partner of Argentina, Brazil, Chile, Peru and Uruguay, and the second most important for Mexico. Between the years 2003 and 2017 China has invested more than 110,000 million dollars in the region, and more than half of that investment was done in the last five years. Another characteristic highlighted on this study is the investment network from China in Public Organizations in the region, which is a strategy of the Chinese government. China-LAC has become a natural context for the reinforcement of trade relations and investment opportunities between China and Latin America and the Caribbean. This event was conceived for facilitating the generation and consolidation of strategic business bonds with top-of-the-line entrepreneurs. It was designed for the Chinese companies, government and governmental organizations to look for partners in Latin America and the Caribbean, and for the LA&C region to primarily look for support, investment and trade with China.
vehicles in Uruguay.
> A loan of 100 million US by the Interamerican Development Bank for the Financial Fund for the Development of countries of the basin of the River Plate which are Argentina, Bolivia, Brasil, Paraguay and Uruguay.
> An agreement by the National Meat Institute of Uruguay and the National Certification and Inspection Group of China for a platform for commercial traceability through a certification process, facilitating the importation of meat products by China. In addition, there were a number of related technical visits, including to Free Trade Zones, production facilities and Uruguayan Logistics. The 2017 China-LAC Business Summit in Uruguay is a powerful example of the far-reaching benefits such an international exchange can achieve, not only with the overall region but for the host country as a whole. As such, it is an excellent Case Study which shows how the existence of a highly capable facility like the Punta del Este Convention and Exhibition Center can help advance national economic priorities – and help other destinations come to understand the key role played by centres in facilitating positive global development.
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Melbourne Convention and Exhibition Centre Embraces the Customer Journey
These days centres need to put a major effort into staying ahead of the competition by understanding who their customers are and what’s important to them. At MCEC, that has meant a specific initiative focusing on the Customer Journey work we undertook two years ago – a game changer for us, and a project that has generated great interest among other venues around the world. In fact, it is a piece of work that provides insights that impact all customer-facing businesses.
Peter King | Chief Executive - MCEC
MCEC had built a thorough three year plan encompassing all parts of our business, resulting in a detailed series of goals, objectives and delivery strategies designed to help MCEC remain ahead of its competition. This is nothing different from what most businesses do these days. However, in our view, one critical element was missing – MCEC’s customers. We were historically operationally focussed and prescriptive in the way we interacted with our stakeholders. This needed to change. We felt we needed to become completely customer centric, with the needs and expectations of our customers driving every decision we made. This proved to be the most important decision we have made and has transformed our entire business – our relationships, our understanding and our structure, including our event delivery model. The Customer Journey project had a very clear scope and sequence, which was: > To accurately define our key customers. > To outline their needs, desires and influences with respect to events – effectively humanising them and providing consistency across the business. > Mapping how they currently make decisions and interact with MCEC. > Using those maps to identify clear opportunities to improve the customer experience, be that through service, communications, content, food and beverage etc. Ultimately, we wanted to deconstruct our customers and their needs with precision, so we could determine the best way of satisfying their requirements. Faced with these four challenges, we took the following steps: 1 | we crafted a set of seven customer personas to create a common language and customer objectives within the business; 2 | we mapped the various journeys taken by our customers in their interactions with us; 3 | we identified ideas for improving their respective customer experiences. Each of these steps included a series of detailed actions. As a result of our findings, we reorganised our structure to ensure we provided assistance and support to customers at critical times in their particular journey with us. Our team has received constant positive feedback since this change, and we know that they now feel more empowered to provide immediate outcomes that satisfy our customers. Across the business, our post event survey results are at the highest levels we have ever seen. A tangible outcome of this work is our recently launched customer portal, myMCEC. This industry-leading online portal is a direct result of our Customer Journey work and aims to ensure customers continue to find it easy to do business with MCEC.
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Developed by international software developer Ungerboeck, myMCEC is the first customised technology of its kind in the meetings and events space and offers our customers a seamless experience when organising an event. The portal is accessible from the MCEC website and allows customers to: > Review and upload important documents tailored to their event including: the initial proposal, event plan and floor plans. > View tasks requiring completion and receive email reminders when an important milestone is happening. > Allocate tasks to other team members. > See key MCEC contacts. > Make payments securely.
“We created myMCEC, a digital solution, in collaboration with our customers which ensures their needs are met from the initial event planning stage through to its completion”. Anne Jamieson Director of Customer Experience & Optimisation
MCEC’s Director of Customer Experience & Optimisation, Anne Jamieson has been instrumental in our Customer Journey work. Anne says myMCEC was developed to address a common industry concern around how to manage large volumes of paperwork and multiple timelines. “We created myMCEC, a digital solution, in collaboration with our customers which ensures their needs are met from the initial event planning stage through to its completion,” says Anne. “The portal was rolled out to a number of customers in December 2017, ahead of its February launch and is already enhancing the overall customer experience.” In the short time since myMCEC’s release to customers, we’ve received positive feedback about the portal and the way it is streamlining the booking Of course, the Customer Journey project is an ongoing one. We will soon commence stage two of our Customer Journey understanding, as we all know our customer and visitor expectations are evolving very quickly. We have to reset our teams, continue to challenge them and improve our delivery performance every year. Standing still is not an option – and by basing our evolving structure and practices on very specific customer perspectives we are ensuring that changes will work to their greatest advantage!
WELCOME TO OUR NEW MEMBERS! PALMA CONVENTION CENTRE Opened April 2017 and designed by the prestigious architect Francisco Mangado, the new Palma Convention Centre is located on the seafront and strategically positioned near the International Airport of Palma (a 5 minute drive), and 10 minutes’ walk from the historical center of the city. Primary features include the Auditorium Illes Balears – one of the most stunning spaces at the Palau, with a capacity of up to 2,000 people in comfortable seating and with the latest technology and a great ambience thanks to ingenious acoustics and lighting and the adjacent Auditorium Mallorca with 462 seats can be internally connected creating an immense unique venue with a large stage for product launches on a great scale.
TEL AVIV CONVENTION CENTER Located in Israel’s business capital, a beautiful, sunny and non-stop city, the Tel Aviv Convention Center is the leading and most progressive venue in Israel for professional conferences and exhibitions, attracting business tourism from all corners of the globe. With the support and commitment of the Tel Aviv Municipality, new state-of-the-art pavilions, a business hotel, and a restaurant complex will be built to realize the Center’s true potential as an international hub for business, culture, science, and technology. Tamir Dayan, CEO says: “At the Tel Aviv Convention Center, our goal is to be the hub for international conferences in Israel, and specifically for knowledge exchange in the fields of science, medicine, innovation,
The on-site Meliá Palma Bay Hotel is part of the complex, offering 268 bright and comfortable rooms with Scandinavian-style warmth, an innovative all day dinning concept in its Trasluz restaurant, an exclusive The Level service and additional services such as gym and spa. It is located in front of “Es Portixol”, an old fishing village that has become one of the most popular places of Palma thanks to the charm of its old fishermen’s houses, quiet pedestrianized streets and its varied offer of bohemian restaurants and bars – a ”must” stop for both visitors and residents. Says Ramon Vidal, Director General “The brand new Palma Congress Center is meant to be the reference point for congresses in the Mediterranean area. Mallorca is a very well know tourist destination with an extraordinary hotel product, an enviable natural environment, and great cultural and gastronomic technology, aggrotech, energy, amongst many others. The catalyst for this is Israel’s strong position in the fields of technological innovation and an increasingly robust stream of foreign direct investments into the Israeli economy. I am proud to say that we have hosted dozens of international conferences and events for some of the world’s most well-renowned corporations including Google, Amazon, and Microsoft and look forward to welcoming more in the coming years.” “We believe that joining the International Association of Convention Centres (AIPC) is a necessary and critical step in our effort to emerge as an established and competitive international center able to attract the largest and most prestigious events in the world. I am confident that our membership will enable us to acquire the best tools for
THE UNITED NATIONS CONFERENCE CENTRE, ADDIS ABABA
Chief Executive Ali Todaro on his objectives for the centre;
Located on Manhattan’s West Side, the The United Nations Conference Centre (UNCC-AA) is situated in Addis Ababa, Africa’s political capital, in the compound of the Economic Commission for Africa (ECA). It is a purpose-built and state-ofthe-art venue that offers a one-stop-shop type of conference facility and services.
“Our vision is to continue to deliver the full range of conference services to African member states and both United Nations and non-UN stakeholders at the highest levels of professionalism, expertise and cost-effectiveness, and to facilitate their endeavors in advancing the purposes of the ECA and the United Nations including forging common positions, knowledge creation and knowledge sharing). In order to achieve this, we must constantly embrace innovation and renovate the premises on a regular basis”.
In 2017 it hosted a total of 552 local, regional and international events which in turn generated 5,632 meetings and side events involving 48,596 participants. UNCC-AA is minutes away from major five-star hotels, and 10 minutes’ drive from Bole International Airport that offers over 100 air links to various local and international destinations.
“UNCC-AA joined the AIPC both to establish industry networks and benefit from the various professional development programs. We believe that such targeted encounters will enhance the future marketability of
Ramon Vidal Director General
richness and now Melia Hotels International is bringing for the first time in its history the huge experience and knowhow of hotel chain to a congress center. It is an architectural gem, in an extraordinary location”
Tamir Dayan CEO
conference management and help foster connections that will enable the Tel Aviv Convention Center and AIPC to collaborate and thrive together collaboratively.”
Ali Todaro Chief Executive
the Centre and the professional growth of staff and that AIPC will be our true source of relevant and technical information about modern Centre management as well as professional development”.
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Understanding the EU General Data Protection Regulation Alyssa Cervantes | Manager – Cybersecurity and Privacy Advisory | JD, CIPP/E Ernst & Young Advisory Services Editor’s Note | As Cybersecurity and data protection concerns grow, so too do the myriad of new legislation and regulations designed to help manage the issues. What follows is an expert perspective from Ernst and Young on the latest of this legislation, the EU General Data Protection Regulation or GDPR which, while specific to the EU, is highly likely to parallel other such regulations elsewhere in the world. What is the GDPR? The EU General Data Protection Regulation (GDPR) replaces the current EU Personal Data Directive in an effort to update the outdated Directive and create a more harmonized approach to the fragmented state by state regimes that currently exist now under the Directive. The GDPR was adopted on the 27th of April 2016 and will come into force as of 25 May 2018. Due to the breadth of the new requirements, organizations have been afforded a two year transition period to come into compliance with the legislations. The GDPR’s ultimate goal is to ensure the protection of the personal data (any information relating to an identified or identifiable natural person) of individuals within the EU. New GDPR Challenges: Increased Scope: The GDPR will apply to the processing of personal data by organizations established within the EU. More controversially, it also will apply to businesses outside the EU if their data processing activities relate to the offering of goods or services to individuals in the EU or to the monitoring of such individuals’ behavior. This increased scope of applicability makes the GDPR a far reaching law. Increased Fines: Under the GDPR fines can be up to 4% of the annual worldwide turnover of an organization. This increase in fines is coupled with the fact that organizations have had the
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aforementioned two years to come into compliance leaving those organizations without existing GDPR compliance mechanisms in place by May 2018 without any excuses. Additional compliance requirements: The GDPR creates additional requirements in order to ensure the protection of personal data. Some of these additional requirements include, but are not limited to additional data subject rights like the creation of the right to data portability (not to be confused with the already existing rights of access, erasure, objection etc. under the Directive), data breach notification requirements, stricter consent requirements, and the requirement to keep a record of processing activities. New obligations for vendors: Under the existing Directive direct compliance obligations only existed for data controllers. Under the GDPR, direct compliance obligations are imposed on both controllers and processors (e.g., outsourced service providers), and both controllers and processors will face direct enforcement. How to achieve compliance If you have yet to begin your GDPR compliance measures or are just starting, there is still good news: you still have time to establish a risk-based compliance program to have in place by May 2018. Step 1: Data Mapping: A good first step is mapping what personal data is processed and for what purposes. This exercise will result in a
record of processing activities and will enable the organization to determine what type of information is held, why it is held, where it goes, and will further assist in defining which processing activities still be subject to a data protection impact assessment must be carried out.
ASSOCIATION INTERNATIONALE DES PALAIS DE CONGRES INTERNATIONAL ASSOCIATION OF CONGRESS CENTRES INTERNATIONALER VERBAND DER KONGRESSZENTREN
TO KEEP IN TOUCH WITH AIPC VISIT
www.aipc.org THE BOARD OF DIRECTORS PRESIDENT | Aloysius Arlando
Chief Executive Officer, Singapore EXPO Convention and Exhibition Centre PAST PRESIDENT | Geoff Donaghy
CEO, International Convention Centre, Sydney Director Convention Centres, AEG Ogden VICE PRESIDENT | Gregory A. O’Dell
President & Chief Executive Officer, Walter E. Washington Convention Center TREASURER | Jan van den Bosch
Director Venue, RAI Amsterdam
Step 2: Implement Organizational Measures: Organizations should also implement organizational measures; such as drafting a privacy policy, creating GDPR specific procedures, and setting up the right roles and responsibilities within the organization.
Marc Rodríguez
Step 3: Implement technical measures: Perhaps the biggest challenge will lie in the technical measures that have to be taken. It is not inconceivable that IT systems will have to be adapted to meet the data subject rights or requests.
Marianne de Raay marianne.de.raay@aipc.org PHONE +32 496 235 327
Step 4: Implement Security Measures: Finally we come to the challenge of cyber security, where it becomes necessary to understand who has access to what data, which measures are taken to protect personal data and whether they are adequate to the IT environment protect and against infringements. Organizations that have not yet taken the first steps to implementation should start today as there is only a few months to go. Should you have any questions on how your organization should tackle GDPR compliance in more detail please do not hesitate to contact me at Ernst & Young Advisory Services. alyssa.cervantes@be.ey.com
General Manager, CCIB – Centre de Convencions Internacional de Barcelona
Julie-May Ellingson Chief Executive Officer, Cape Town International Convention Centre
Peter King Chief Executive | Melbourne Convention and Exhibition Centre AIPC MANAGEMENT
Rod Cameron criterion@axion.net AIPC CORPORATE PARTNERS 2018
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