Senior Content Marketing Manager II
June 30, 2023•7 min read
Privacy impact assessments (PIA) help organizations identify, analyze, and mitigate the privacy risks associated with personal information (PI) data collection, storage, and processing. At its core, the goal of a PIA is to:
Both an analytical process and a document outlining that process and its outcomes, PIAs help program managers evaluate data processing risks and demonstrate they’ve made a conscious effort to address and mitigate those risks.Â
A requirement of the 2002 E-Government Act, privacy impact assessments are a key way that organizations can show regulators and the public they're handling consumer data responsibly.
You'll often see the terms privacy impact assessment and data protection impact assessment (DPIA) used interchangeably. And, though the two concepts do have a lot of overlap, there are some notable differences. We'll cover those in the next section.
One question we often get is about the differences between privacy impact assessments (PIA) and data protection impact assessments (DPIA). Both share the same broad strokes—in that they're systematic tools for identifying and addressing privacy and data processing risk.Â
Because of this overlap, you may see the terms PIA and DPIA used as synonyms. But with different backgrounds, goals, and requirements, it’s important that privacy professionals understand when and how to use a PIA vs a DPIA.
Here’s a few broad-stroke differences between the two.
GDPR Article 35 offers a few examples of risky data processing, including automated profiling, collecting biometric data, large scale processing of personal information, public surveillance, and facial recognition.
These subtle differences between PIA and DPIA should be taken into account when considering what’s appropriate for your business.
Privacy impact assessments are primarily a requirement for Federal agencies under the E-Government Act of 2002. Though they can provide benefits to other organizations, only Federal agencies are explicitly required to conduct them.Â
In their Privacy Impact Assessment Guide, the US Securities and Exchange Commission outlines several scenarios in which agencies are required to conduct a privacy impact assessment.
The United States Office of Personnel Management takes a slight different approach, requiring that PIA’s be conducted when/if:
Though there are certainly areas of overlap between these two agencies in terms of how they apply the E-Government Act, it’s important to note the differences in their threshold for when a PIA is necessary.
When considering whether your organization should conduct one, try to find a guide that outlines the specific requirements for your agency.
While conducting your PIA, be sure to consider your goals. Remember, a comprehensive privacy impact assessment should:
Though conducting a privacy impact assessment might seem a little daunting, they do provide a few significant benefits.
When conducted before a project begins, as required by most organizations under the E-Government Act, a privacy impact assessment can help identify risk that could pose big problems down the road.Â
Of course, there’s the ever-present question of regulatory compliance. But there’s other aspects of risk management that can impact a project. Privacy risks discovered once a project is well underway may slow down or even completely derail a project, depending on the severity of the risk.Â
Ultimately, taking the time to identify and mitigate these risks ahead of time can save you future headaches.Â
Not conducting a PIA when required is a clear violation of the E-Government Act. That said, even if you’ve done everything right, it’s possible your agency might come under scrutiny—whether it’s from a change in leadership, increased interest from the public, or some other force majeure.Â
If this moment comes, having a comprehensive PIA in hand will go far in demonstrating your agency's compliance—helping you get off on the right foot with the regulator.Â
As more stories hit the news about organizations who've mishandled personal information, either by accident or with intent, it’s important to be able to show that your agency is committed to privacy—and a PIA can help.Â
In the 2023 IAPP Privacy and Consumer Trust Report, researchers found that 68% of consumers are either somewhat or very concerned about their online privacy. They also found that more than 60% of consumers will take defensive actions e.g. deleting an app if they feel their privacy is not protected.
In some cases, lack of a PIA could even result in loss of customers or partner relationships, damaging your reputation to the detriment of your bottom line.Â
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Senior Content Marketing Manager II