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Privacy impact assessment (PIA) is a systematic process for evaluating the potential privacy effects of a project, product, or system before it is implemented. The goal is to identify privacy risks, assess their likelihood and impact, and implement measures to mitigate harm to individuals and comply with data protection laws.

PIAs are most needed when processing large amounts of personal data, sensitive data, or using new technologies

The process typically includes defining the scope, mapping data flows, identifying the data subjects and purposes,

Legal context: under the European Union’s General Data Protection Regulation, a DPIA (data protection impact assessment)

Limitations: a PIA relies on available information and may need updates as processing changes. It does not

that
enable
new
data
processing
capabilities,
profiling,
or
automated
decision
making.
They
are
also
useful
for
organizations
seeking
to
demonstrate
accountability
to
regulators
and
the
public.
and
assessing
risks
to
privacy
rights.
It
also
involves
evaluating
existing
and
proposed
safeguards,
such
as
data
minimization,
access
controls,
encryption,
retention
limits,
and
transparency
measures,
and
determining
residual
risk.
The
findings
are
documented
in
a
PIA
report
and
used
to
inform
decisions,
obtain
approvals,
and
implement
changes
prior
to
deployment.
Ongoing
monitoring
and
periodic
re-assessment
are
recommended
as
projects
evolve.
is
required
for
high-risk
processing.
Other
jurisdictions
have
parallel
requirements,
while
many
organizations
adopt
PIAs
as
a
best
practice
to
support
privacy
by
design
and
accountability.
guarantee
compliance
or
eliminate
all
privacy
risks
but
aims
to
reduce
them
and
improve
governance.