Mitigate privacy risks to your customers and organization!

Privacy risk can exist throughout the data life cycle, so it is important to manage and govern data properly. A number of privacy risk management activities can be undertaken during the data life cycle. Designing a privacy risk management framework is the first step to ensuring data validation and data protection, monitoring and controlling data, and complying with all applicable laws and regulations.

The Continuum GRC ITAM SaaS platform has privacy modules available, such as:

Data Privacy Impact Assessment (DPIA)

Organizations looking to get ahead of the increasing demands of new data protection laws and regulations around the world can utilize a DPIA to prepare to enhance privacy policies and procedures or to comply with existing regulations such as GDPR, CCPA, HIPAA Privacy Rule, EU-U.S. Privacy Shield, and the AICPA SOC 2 Privacy Trust Principle.

Modules include:

  • Data Privacy Impact Assessment (DPIA) attestation

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About the Standard

A Data Protection Impact Assessment (DPIA) is a critical tool mandated by the General Data Protection Regulation (GDPR) under Article 35 for processing activities that are likely to result in a high risk to individuals’ rights and freedoms. Below is a comprehensive overview of the compliance requirements for conducting a DPIA, based on GDPR and related guidance.

When is a DPIA Required?

A DPIA must be conducted in the following scenarios, as outlined in Article 35(3) of the GDPR and further clarified by guidelines such as those from the European Data Protection Board (EDPB) and national data protection authorities (e.g., UK ICO):

  1. Systematic and Extensive Profiling with Significant Effects:
    • Processing involving automated decision-making or profiling that produces legal effects or significantly impacts individuals (e.g., automated credit scoring or hiring decisions).
  2. Large-Scale Processing of Sensitive Data:
    • Processing of special categories of personal data (e.g., health, biometric, genetic data, racial or ethnic origins, political opinions, religious beliefs) or data related to criminal convictions and offenses on a large scale.
    • "Large scale" considers factors like the number of data subjects, volume of data, duration, and geographical scope.
  3. Systematic Monitoring of Publicly Accessible Areas:
    • Large-scale surveillance of public spaces, such as CCTV systems or location tracking, which impacts privacy due to the inability of individuals to avoid monitoring.
  4. Other High-Risk Scenarios:
    • Use of new technologies (e.g., AI, biometrics, or IoT) that may introduce novel risks.
    • Processing children’s data or data that could cause physical harm if breached.
    • Situations where data processing could lead to discrimination, identity theft, financial loss, reputational damage, or loss of confidentiality.

The GDPR encourages conducting DPIAs even when not strictly mandatory, as a best practice to minimize risks and demonstrate compliance.

Key Compliance Requirements for a DPIA

According to Article 35(7) of the GDPR, a DPIA must include the following elements:

  1. Systematic Description of Processing Operations:
    • Detail the nature, scope, context, and purposes of the processing.
    • Specify the types of personal data collected, how it’s stored, used, and shared, and the duration of retention.
    • Identify who has access to the data and whether it’s shared with third parties or transferred outside the EU/EEA.
  2. Assessment of Necessity and Proportionality:
    • Justify why the processing is necessary to achieve the intended purpose.
    • Evaluate whether the processing is proportionate, ensuring data minimization (i.e., collecting only what is needed).
    • Confirm the lawful basis for processing (e.g., consent, legitimate interest) and compliance with GDPR principles like purpose limitation and data accuracy.
  3. Risk Assessment:
    • Identify potential risks to individuals’ rights and freedoms, such as:
      • Unauthorized access or data breaches.
      • Loss of confidentiality, integrity, or availability of data.
      • Discrimination, financial loss, reputational damage, or identity theft.
    • Assess the likelihood and severity of these risks, creating a risk matrix to prioritize mitigation.
  4. Mitigation Measures:
    • Outline specific measures to address identified risks, including:
      • Technical safeguards: Encryption, pseudonymization, access controls, or secure storage.
      • Organizational measures: Staff training, internal policies, data-sharing agreements, or privacy notices.
      • Procedural safeguards: Opt-out options, mechanisms to support data subject rights (e.g., access, rectification, erasure).
    • Document the effectiveness of these measures and any residual risks.
    • If high risks persist after mitigation, consult the relevant data protection authority (DPA) before proceeding.

Additional Compliance Considerations

  • Stakeholder Involvement:
    • Involve the Data Protection Officer (DPO), if appointed, to guide the DPIA process and ensure compliance.
    • Engage relevant stakeholders (e.g., IT, legal, compliance teams) for a comprehensive assessment.
    • Consider consulting data subjects or their representatives (e.g., via surveys or focus groups) to incorporate their perspectives.
  • Documentation and Transparency:
    • Maintain detailed records of the DPIA process, including the assessment, risks, mitigation measures, and decisions made.
    • Ensure documentation is accessible for internal review and available to DPAs upon request, especially post-incident or during audits.
  • Continuous Review and Updates:
    • DPIAs are not one-time exercises. Review and update them regularly, particularly when there are significant changes to processing activities, technologies, or regulations.
    • Monitor the effectiveness of mitigation measures and reassess risks as needed.
  • Consultation with Supervisory Authorities:
    • If residual risks remain high despite mitigation, consult the DPA (e.g., ICO in the UK) before processing begins. Provide:
      • A description of roles (controller, processor, joint controllers).
      • Purposes and methods of processing.
      • Mitigation measures and the DPIA itself.

Legal and Practical Implications

  • Penalties for Non-Compliance:
    • Failure to conduct a required DPIA can result in fines of up to €10 million or 2% of annual global turnover, whichever is higher, under GDPR. In some jurisdictions, such as Singapore under the PDPA, fines have increased to $50,000 as of 2025.
    • Non-compliance may also lead to reputational damage and loss of consumer trust.
  • Global Applicability:
    • Beyond GDPR, other regulations like the California Consumer Privacy Act (CCPA) and HIPAA in the US require similar risk assessments, aligning with DPIA principles.
    • Countries like Nigeria and Singapore (PDPA) also recognize DPIAs as best practices or legal requirements.
  • Best Practices:
    • Start DPIAs early in the project planning phase to embed privacy by design.
    • Use templates from authorities like the UK ICO to structure the process.
    • Leverage tools like OneTrust or Microsoft Compliance Manager for efficiency.
    • Ensure multidisciplinary teams (legal, IT, compliance) collaborate for a holistic assessment.
    • Regularly train staff to enhance awareness of DPIA requirements.

Practical Steps for Compliance

  1. Identify the Need: Assess whether the processing activity meets high-risk criteria.
  2. Map Data Flows: Document all aspects of data collection, storage, use, and sharing.
  3. Evaluate Risks: Analyze potential impacts on data subjects using a risk matrix.
  4. Implement Safeguards: Apply technical, organizational, and procedural measures to mitigate risks.
  5. Document and Review: Create a comprehensive DPIA report and update it as needed.
  6. Consult Stakeholders: Engage DPOs, teams, and potentially data subjects or DPAs.

By adhering to these requirements, organizations demonstrate accountability, minimize privacy risks, and ensure compliance with GDPR and other global data protection laws.