processor
What It Means
A processor is any company or service provider that handles personal data on your behalf, following your instructions. They act like a subcontractor - you remain responsible for the data, but they do the actual processing work for you.
Why Chief AI Officers Care
You're legally liable for how your processors handle personal data, and data breaches at processor companies can result in massive fines and lawsuits against your organization. Poor processor oversight is a top cause of regulatory penalties.
Real-World Example
When you use a cloud email service like Microsoft 365 for employee communications, Microsoft is your processor - they store and manage the emails, but you control what data goes there and how it's used.
Common Confusion
Many executives think processors are fully responsible for data protection compliance, but the hiring company (controller) remains primarily liable for ensuring processors follow data protection rules.
Industry-Specific Applications
See how this term applies to healthcare, finance, manufacturing, government, tech, and insurance.
Healthcare: In healthcare, processors include cloud service providers, IT vendors, and analytics companies that handle protected hea...
Finance: In finance, processors include payment processors, cloud providers, and third-party analytics services that handle custo...
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Includes:
- 6 industry-specific applications
- Relevant regulations by sector
- Real compliance scenarios
- Implementation guidance
Technical Definitions
NISTNational Institute of Standards and Technology
"‘Processor’ means a natural or legal person, public authority, agency or other body which processes personal data on behalf of the controller."Source: GDPR
"“Processing” means any operation or set of operations that are performed on personal information or on sets of personal information, whether or not by automated means."Source: CCPA
Related Terms
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