Privacy Impact Assessment (PIA) / Data Protection Impact Assessment (DPIA) Overview and Guidance

This guide will help provide a structured approach to knowing when and how to conduct PIAs and DPIAs.

Introduction

Privacy Impact Assessments (PIAs) and Data Protection Impact Assessments (DPIAs) are critical tools for organizations to identify, evaluate, and mitigate privacy risks associated with the processing of Personally Identifiable Information (PII). These assessments help ensure compliance with privacy regulations and demonstrate the organization's commitment to protecting data subjects' rights. This guide outlines the steps to effectively conduct a PIA/DPIA in alignment with the "Data Privacy - Privacy Impact Assessment (PIA) Policy."

Objective

The objective of this guide is to provide a structured approach to conducting Privacy Impact Assessments (PIAs) and Data Protection Impact Assessments (DPIAs). By following the outlined steps, organizations can:

1. Identify and mitigate privacy risks to data subjects effectively.
2. Ensure compliance with privacy laws and regulations.
3. Promote transparency and accountability in data processing activities.

Key Steps for Effective PIAs/DPIAs

Organizations with dedicated privacy expertise can leverage these individuals to identify and address privacy risks effectively. For those without specific privacy experts, consider designating a knowledgeable team member to undergo training or consulting with external privacy professionals to fulfill this role. The Trustero Risk Register supports assigning risk owners for each privacy risk identified, ensuring clear accountability. To prepare for privacy audits or assessments, appoint a Privacy Risk Owner who has responsibility over all privacy risks. This person must have the seniority (or mandate) to address privacy risk issues organization-wide. They must be capable of prioritizing privacy risk analysis in different department meetings and driving discussions to completion with action items and timely resolution.

1. Assess the Need for a PIA/DPIA

To determine if a PIA/DPIA is required for new or significantly modified PII processing activities, consider the following criteria. The more factors that apply, the more likely a PIA/DPIA is necessary. For clarity, any one of the following may mandate a PIA/DPIA under many privacy regulations:

• Automated decision-making processes affecting data subjects.
  • Examples include profiling, credit scoring, or automated hiring decisions.
  • If these decisions significantly impact data subjects' rights or freedoms, a PIA/DPIA is mandatory.
• Large-scale processing of sensitive PII categories.
  • Includes processing health data, biometric data, racial/ethnic information, or other sensitive categories as defined by regulations like GDPR or HIPAA.
  • “Large-scale” refers to processing a volume of data that impacts a large number of data subjects or significantly affects a smaller group (e.g., a hospital’s health records).
• Systematic monitoring of publicly accessible areas.
  • Examples include surveillance systems, behavior tracking, or use of AI-powered monitoring tools.
  • A PIA/DPIA is typically required for continuous or widespread surveillance, especially in high-traffic areas.
• Jurisdictional requirements and high-risk criteria.
  • Privacy laws like GDPR, CCPA, or local regulations may specifically mandate a PIA/DPIA for certain high-risk activities.
  • High-risk criteria include combining datasets that increase risks of reidentification, processing PII of vulnerable populations, or transferring PII across borders to jurisdictions with lower privacy standards.

Note: Organizations should consult applicable privacy regulations for exact triggers. When in doubt, err on the side of caution and conduct a preliminary assessment to determine whether a full PIA/DPIA is warranted.

2. Implement a PIA/DPIA

If an assessment is necessary, follow these steps:

• Identify Privacy Impacts: Document potential risks and impacts on data subjects.
• Evaluate Risks: Use tools such as data flow diagrams to visualize data processing activities and identify high-risk areas.
• Privacy by Design: Ensure privacy protections are integrated into the system design.
• Update PIA/DPIA: Revise assessments when processing activities change.
• Stakeholder Engagement: Share identified privacy risks with stakeholders to maintain transparency and accountability.

3. Document PIA/DPIA Findings

• Risk Documentation: Record identified risks, recommended mitigations, and implemented protections in the organization's Risk Register within their Trustero account. This ensures a centralized, accessible location for tracking and addressing privacy risks effectively.
• Compliance Evidence: Maintain a thorough record of the assessment process to serve as evidence during audits or investigations.
• Mitigation Tracking: Ensure all mitigation measures are tracked to completion. Within the Trustero Risk Register, link each mitigating action to a specific control designed to address the risk and bring it to an acceptable level. This linkage ensures transparency and demonstrates that all privacy risks are being actively managed and mitigated.

4. Annual Review of PIAs/DPIAs

• Review completed PIAs/DPIAs annually to:
  • Reflect changes in processing activities.
  • Incorporate updates to legal and regulatory requirements.
• Ensure documentation remains current and actionable.

5. Training on PIA/DPIA Procedures

• Audience: Train relevant staff on the PIA/DPIA process, including individuals who are directly involved in data processing, privacy risk management, or regulatory compliance. This typically includes:
  • Privacy Officers/Data Protection Officers (DPOs): Oversee and approve the PIA/DPIA process.
  • IT and Security Teams: Manage data systems, implement privacy by design principles, and support mitigation efforts.
  • Project Managers/Owners: Ensure privacy considerations are integrated into project plans from the outset.
  • Legal and Compliance Teams: Provide guidance on regulatory requirements and risk mitigation strategies.
  • Business Unit Leaders: Advocate for and implement privacy measures within their teams.
• Content: Training should cover:
  • When and how to initiate an assessment.
  • Using automated tools effectively.
  • Importance of privacy risk assessments in compliance and risk mitigation.
• Frequency: Conduct training sessions annually and update content to address emerging risks, regulatory changes, and lessons learned from prior assessments.

Roles and Responsibilities

• Privacy Officer/Data Protection Officer (DPO):

• Oversee the PIA/DPIA process.
• Advise on compliance and risk mitigation strategies.
• Approve final assessments.

• Stakeholders:

• Provide input on privacy risks and operational impacts.
• Collaborate on mitigation strategies.

• Project Teams:

• Integrate findings into project plans.
• Ensure privacy by design principles are followed.

Key Outputs of a PIA/DPIA

1. Privacy Risk Assessment Report: Documents risks, impacts, and mitigations.
2. Data Flow Diagrams: Visualizes data processing activities.
3. Mitigation Plan: Tracks implementation of privacy protections.
4. Stakeholder Summary: Communicates findings and mitigations to relevant parties.
5. Annual Review Record: Logs updates and changes to ensure continued compliance.

Privacy Risk Treatment Options

1. Accept: Acknowledge the risk is tolerable without further action, typically due to low likelihood or minimal impact.
2. Avoid: Change processes or systems to eliminate the risk entirely, such as ceasing certain data processing activities.
3. Mitigate: Implement controls to reduce likelihood or impact, such as encryption or access restrictions.
4. Share: Distribute risk through contracts or partnerships, ensuring shared responsibility for privacy compliance.
5. Transfer: Shift the risk to another party, such as purchasing cyber insurance to cover privacy breach costs.

Conclusion

Conducting PIAs and DPIAs is essential for managing privacy risks effectively. By following this guidance, organizations can ensure robust compliance with privacy regulations, build trust with data subjects, and demonstrate accountability in handling PII.

References

For consistent and thorough assessments, refer to the Privacy Impact Assessment (PIA) / Data Protection Impact Assessment (DPIA) Starter Form.