What is the purpose of a privacy impact assessment?

A privacy impact assessment (PIA) serves mainly to evaluate risks associated with the handling of sensitive information. The assessment involves examining how personal data is collected, stored, processed, and shared within a system or project. By understanding these practices, organizations can identify potential threats and vulnerabilities related to the privacy of individuals whose data is being managed.

The process ensures that appropriate measures are in place to mitigate risks to privacy, such as unauthorized access, data breaches, or misuse of personal information. Furthermore, conducting a PIA helps organizations maintain transparency and build trust with stakeholders, demonstrating a commitment to protecting personal data.

While documenting regulatory compliance is important, a PIA goes beyond merely checking off compliance boxes; it involves a thorough risk evaluation and proactive management of data privacy. Similarly, while assessing system performance is crucial for overall system functionality, a PIA specifically focuses on privacy implications rather than technical performance metrics. Identifying market opportunities is unrelated to the core function of a PIA, which is fundamentally concerned with safeguarding personal data and assessing privacy risks.