The General Data Protection Regulation (GDPR) has compelled enterprises to conduct Data Protection Impact Assessments (DPIAs) since May 25, 2018. (GDPR). DPIAs are used by organisations to determine whether certain data processing activities pose a risk to individuals’ rights and freedoms. However, because DPIAs sound so much like the far more well-known PIA (privacy impact assessment), there has been considerable confusion among privacy and risk management teams, who have wrongly assumed they are the same thing. However, DPIAs and PIAs serve quite diverse purposes, assisting teams in achieving distinct objectives and assessing various aspects of privacy. This article examines the key differences between these two types of evaluations, as well as the functions they each play in a GDPR-compliant privacy programme.
What is a Privacy Risk Assessment and how does it work?
A privacy impact assessment (PIA) is a common technique used by privacy teams to achieve privacy by design (the use of business and technology policies and processes to protect data efficiently). When it comes to matters like competitive advantage, product value, and cost effectiveness in design, many organisations use PIAs. When a new business procedure is developed, a new company is purchased, or a new product is launched, PIAs are used to detect and minimise organisational privacy risk. When existing processes, products, and systems are modified, PIAs can be used (e.g. when a company expands business into a new country or region).
What is a Data Protection Impact Assessment (DPIA) and why is it important?
A DPIA is a document that companies employ as needed to help them identify and mitigate risks related with the processing of personal data. Although the GDPR does not identify the types of processing that may pose a danger, EU Member States have issued their own whitelists and blacklists that serve as suggestions for when DPIAs are required. Sensitive data processing, large-scale data processing, and automated decision making are just a few examples.
DPIAs can also be used by businesses to demonstrate compliance with the GDPR. DPIAs give clear, recorded evidence that an organisation has assessed the risk of specific processing activities and is able to demonstrate that the risk has been reduced and that the company is in compliance with the regulation’s requirements. If required, organisations can disclose this material to local, state, and federal data protection authorities (DPAs).
The Four Components of a DPIA
While there are no specific rules on how a company should conduct a DPIA, there are four essential components that should be included:
- A detailed description of the processing activities and their objectives (for example, what and why are we processing personal data? );
- An assessment of the processing operations’ necessity and proportionality in regard to these aims (e.g., is it really necessary to collect all of this persons data? );
- An evaluation of the dangers to data subjects’ rights and freedoms (e.g., how does this effect the data subject? ); and
- The protections needed to manage the risks, such as controls and procedures to secure personal data and demonstrate GDPR compliance (e.g., what controls and mechanisms should we put in place to protect data, data subject rights, and to line with GDPR requirements?).
These four factors will assist organisations in focusing on the types of data they collect and process, the risks connected with data processing, and the likelihood of occurrence and effect. A DPIA can assist a company in identifying worst-case events and preparing for or mitigating them.
What Happens After a DPIA Is Completed?
Although the GDPR does not require enterprises to share the results of their DPIAs, they should keep a complete record of the privacy issues identified by their DPIAs and how they were remedied in the event of a claim or investigation by a DPA. If a DPIA determines that a processing activity poses a significant danger to the privacy of data subjects, the organisation must confer with its designated DPA to identify the next steps.
While both PIAs and DPIAs are important components of a privacy policy, their duties within an organisation are very different. PIAs are used to assess how business and/or technology changes and objectives affect a company’s privacy programme, as well as any potential privacy concerns that may occur as a result of these changes. DPIAs are far more detailed, focusing on very particular processes and their implications for data subjects rather than just the organisation. DPIAs, contrary to popular belief, do not replace PIAs under the GDPR, but rather complement them. Together, these two ensure a company’s view of privacy risk is more comprehensive and compliant, as well as a thorough plan to handle and mitigate these risks.
What is the difference between a DPIA and Privacy Risk Assessment?
DPIA stands for Data Protection Impact Assessment, which is part of the General Data Protection Regulation (GDPR) of the European Union (EU) (GDPR). It’s essentially the same as a PIA, although there are some distinctions in how they’re conducted.
A DPIA is required in three situations, for example:
In large-scale processing of specific categories of data, or personal data linked to criminal convictions and offences, automated processing requiring a systematic and detailed evaluation of an individual’s personal features and leading to judgments that significantly affect him or her
The systematic surveillance of public spaces on a broad scale.
In addition, the GDPR requires each EU member country to publish a list of data processing systems that must undergo a DPIA. The DPA, on the other hand, does not state that a PIA is required. The NPC requires it of government agencies, but only through Circular No. 16-01 of the Commission.
Failure to complete a mandated DPIA in the EU might result in significant fines. If an entity fails to carry it out on a specific processing, it will be fined €10 million. The same is true if the DPIA is performed incorrectly or if the business fails to consult with the data protection authorities as required by law. If the violation is related to an endeavour, the penalty might be as much as 2% of the entity’s total global income for the previous fiscal year.
In comparison, failing to conduct a PIA is not punished under any existing policy. Organizations are cautioned, however, that it may be a key factor in determining whether they exercised due diligence in protecting personal data under their control or custody in an inquiry or case by the NPC or the courts.
Infinity Legal Solution, the best law firm in Amsterdam assists in conducting affective data protection impact assesment and privacy risk assessment.
The assessment should include:
- a data inventory, a description of the organization’s data flow and processing operations, and current data security procedures.
- It should contain a review of the organization’s adherence to data privacy standards and security measures, including procedures that allow people (data subjects) to exercise their rights over their data.
- It should identify and assess the dangers that a data processing system poses to impacted individuals’ rights and freedoms, both natural and man-made. Then it should make recommendations for how to address and manage these dangers.
- It should be a collaborative effort that encompasses all parties involved and incorporates feedback from the Data Protection Officer and data subjects.
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