Governance that generates growth: why SMEs need a strategic DPO.

Estimated reading time: 4 minutes

Summary

For a long time, data protection was perceived by small and medium-sized enterprises as a distant issue—relevant, but not necessarily a priority. In a business environment marked by quick decisions, strict cost control, and a constant focus on growth, governance initiatives were often postponed in favor of demands considered more urgent.

This scenario, however, underwent a silent—and irreversible—inflection point.

The myth that the LGPD (Brazilian General Data Protection Law) is only a problem for large companies.

The digitalization of business has transformed data into one of the main corporate assets, regardless of the organization's size. Management systems, sales platforms, marketing tools, financial solutions, and technologies based on artificial intelligence have made data processing an inseparable part of business operations. As a consequence, exposure to risk is no longer a variable related to company size but rather reflects the degree of maturity with which this information is managed.

Meanwhile, small and medium-sized enterprises have assumed increasingly strategic positions within economic chains. Many act as suppliers to large organizations, integrate into complex digital ecosystems, and participate in continuous data sharing flows. In this context, weak governance no longer only generates internal impacts—it can compromise business relationships, affect reputations, and limit growth opportunities.

The market itself has signaled this shift in expectations. Compliance requirements have begun to influence hiring processes, financial institutions are observing governance practices more closely, and business partners are prioritizing organizations capable of offering information security. At the same time, regulatory advancements and increased awareness among data subjects reinforce a clear message: protecting data has ceased to be a competitive advantage and has become a structuring element of good governance.

The most common mistake SMEs make when looking at data protection.

One of the most common misconceptions among small and medium-sized enterprises is interpreting data protection solely as a legal obligation—an issue that needs to be addressed only to avoid sanctions. From this perspective, governance tends to be treated as a one-off project, often activated only in response to a contractual requirement, an audit, or the imminent threat of inspection.

This behavior reveals a reactive logic. Instead of structuring processes in advance, many organizations opt for quick fixes, such as adopting ready-made policy templates, generic terms, or tools implemented without a real diagnosis of the operation. While these initiatives may convey an initial sense of security, they are rarely sufficient to sustain a consistent data protection program.

The risk of this approach lies precisely in the false perception of compliance. Isolated documents do not represent governance, just as technology, by itself, does not correct cultural or operational weaknesses. When there is no clarity about what data is processed, why it is used, where it is stored, and who has access to it, the company remains exposed—even if it believes it is protected.

Another side effect of this limited understanding is the difficulty in connecting data protection to business strategy. By viewing the issue solely as a regulatory cost, the opportunity to use governance as an instrument for internal organization, operational efficiency, and reputational strengthening is lost.

The new role of the DPO: from legal support to growth agent.

It is in this environment that the Data Protection Officer emerges as a strategic agent. This change does not occur by chance. In a data-driven corporate environment, informational risks are directly connected to aspects such as operational continuity, reputation, and revenue generation. In this context, the DPO ceases to be perceived merely as a guardian of compliance and begins to act as a facilitator of strategy.

More than answering the question "Are we compliant?", leadership is beginning to demand answers to broader questions: Are we prepared to grow safely? Do our processes support business expansion? Do our partners offer the same level of protection that we promise to the market?

It is precisely at this intersection that the DPO's relevance increases.

By mapping data flows, reviewing processes, and identifying vulnerabilities, this professional helps reduce operational inefficiencies that are often invisible to management. Decentralized information, unnecessary access, redundant storage, and poorly structured routines cease to be merely privacy risks—they also become sources of waste and rework.

When governance is well implemented, the gains extend beyond the regulatory field. Clearer processes lead to faster decisions, responsibilities are better defined, and the organization operates with greater predictability. In other words, protecting data also means organizing the company to grow with less friction.

Another important shift is the change in internal perception. The modern DPO should not be seen as the professional who interrupts initiatives or imposes barriers to innovation. On the contrary, their role enhances projects from the outset, allowing new solutions to be developed with controlled risk.

This repositioning transforms the DPO into an enabler — someone who helps leadership move forward with confidence, not retreat due to uncertainty.

Conclusion

The new role of the DPO, therefore, is not limited to loss prevention—it also connects to value creation. By translating technical risks into executive language and supporting more informed decisions, this professional becomes integrated into the sustainable growth architecture of organizations.

Ultimately, the evolution of this function reveals a larger shift in the very understanding of governance: moving from a merely protective stance to assuming a structuring role in business development. When this happens, the DPO ceases to be a legal support and consolidates itself as a true agent of growth.

About the Author

Meet the author of this article.

  • Manuela Cotulio is a lawyer and CEO of PrivOn, a consultancy specializing in data protection, information security, and corporate training. She holds a postgraduate degree in Cyber ​​Security from UNIVEM, is currently pursuing postgraduate studies in Digital Law at Universidade Cândido Mendes, and in Compliance, Corporate Governance, and ESG at Damásio. A certified DPO by EXIN, she also holds ISFS, PDPF, and PDPP certifications. Currently, she is the vice-president of the Digital Law Commission of the OAB/SP – Assis Subsection, a member of the Legal Committee of APDADOS, and works as a legal mentor at Fomenta Vale.

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