Data Protection Impact Assessment

DPIAs became a formal legal requirement under the GDPR (Article 35), which mandates that organizations conduct an impact assessment before beginning any type of data processing that is likely to result in a high risk to the rights and freedoms of individuals. This includes processing on a large scale, systematic monitoring of public areas, automated decision-making with legal or significant effects, and processing of special categories of data.

A comprehensive DPIA typically includes several key components: a systematic description of the processing operations and their purposes, an assessment of the necessity and proportionality of the processing, an evaluation of the risks to the rights and freedoms of data subjects, and the measures envisaged to address those risks, including safeguards, security measures, and mechanisms to ensure compliance and demonstrate it.

The process of conducting a DPIA usually involves multiple stakeholders. The data protection officer (if one exists) must be consulted, and the views of data subjects or their representatives should be sought where appropriate. The assessment should consider both the likelihood and severity of potential harms, including physical, material, and non-material damage such as discrimination, identity theft, financial loss, or reputational damage.

If a DPIA indicates that the processing would result in a high risk that cannot be adequately mitigated, the organization must consult with its supervisory authority before proceeding. Beyond GDPR, many other privacy regulations worldwide have adopted similar impact assessment requirements, making DPIAs an increasingly standard practice in data governance and privacy management programs.