Under the UK GDPR, a Data Protection Officer (DPO) must be independent in performing their tasks. This means they must not be placed in a position where they’re expected to decide how personal data is collected, used, stored, or shared—because that would compromise their ability to monitor and advise on compliance objectively.
Common Conflicts of Interest in Small Businesses
In small businesses, it’s very common for staff to wear multiple hats, which often leads to conflicts of interest. Here are a few roles that typically shouldn’t also be your DPO, because they make decisions about data processing:
1. Managing Director / CEO / Business Owner
They make strategic decisions about customer data, marketing, HR, and systems, so they’re too close to the processing activities to independently monitor them.
2. Head of IT or Systems Administrator
This person often designs or manages systems that store personal data and decides on technical controls. That’s a direct conflict if they’re also responsible for auditing or assessing those systems.
3. Marketing Manager
Marketing teams handle email campaigns, analytics, customer profiling, and data capture. They decide how and why personal data is used for business growth, making them data controllers in practice.
4. HR Manager or Payroll Officer
They process a large amount of employee data, from contracts and appraisals to health data and disciplinary records. Being the DPO and handling that data would create a conflict.
5. Finance Director or Operations Lead
They often oversee business systems and reporting that involve customers, suppliers, and staff data, making it hard for them to independently challenge poor data practices.
6. Admin or Procurement
They often are not suitable for a DPO role because they are too junior or oversee suppliers and don’t have enough experience or knowledge in Data Protection.
So, Who Can Be the DPO in a Small Business?
You could assign the role to:
- An internal staff member whose main duties don’t involve determining how data is used (e.g. legal advisor)—as long as they have no conflict and have adequate knowledge
- An external provider (like CVG Solutions), offering DPO as a Service (DPOaaS), which is often the most practical, conflict-free, and cost-effective approach for small businesses
Why This Matters
If a regulator like the Information Commissioner’s Office (ICO) finds that your DPO is involved in decisions about data processing and expected to monitor that processing, your business may be found non-compliant. This could weaken your accountability and put you at legal risk.
Final Thought
In small businesses, internal resources are often stretched, making it hard to appoint a truly independent DPO from within. That’s why outsourcing to an experienced, impartial professional is not only allowed under the law—it’s often the most compliant and realistic option.
Need help reviewing potential conflicts or setting up an outsourced DPO service? CVG Solutions can guide you through the process.
We can provide you with a checklist or simple decision tool to assess DPO conflicts in your business. Just get in touch!
How to contact us
01775 660506
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