Term: Data Protection Impact Assessment (DPIA)
A Data Protection Impact Assessment (DPIA) is a systematic process to evaluate the potential risks that a particular activity or project may have on the privacy of individuals.
What is a DPIA?
A DPIA is like a check-up that companies or organizations do to see if they are doing everything they can to protect individual’s personal data. It helps them to find out if there are any risks to personal data and how they can reduce those risks. A DPIA is important because it makes sure that companies and organizations are following the rules about how to keep personal data protected, and in some cases, it is required by law to conduct one.
What does DPIA mean for businesses?
For businesses, conducting a DPIA means taking the necessary steps to understand and manage the risks associated with processing personal data.
Under the General Data Protection Regulation (GDPR)(Art. 35), businesses are legally obliged to carry out a DPIA in situations where data processing is likely to result in a high risk to the rights and freedoms of individuals. This includes systematic monitoring, large-scale processing of special categories of data, automated decision-making, etc.
By actively identifying and addressing potential privacy risks, businesses can avoid potential legal pitfalls and protect their reputation. It’s essential for businesses to check both the GDPR and local data protection guidance to ensure complete compliance.
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