Privacy Impact Assessment Guide: GDPR and Beyond

Privacy Impact Assessments identify and mitigate data protection risks. This guide covers GDPR DPIA requirements, methodology, risk assessment, and implementation strategies.

PIA vs DPIA

Privacy Impact Assessment (PIA)

Purpose: Identify privacy risks Required by: Best practice, some regulations Scope: Any data processing Timing: Before implementation

Data Protection Impact Assessment (DPIA)

Purpose: GDPR-specific risk assessment Required by: GDPR Article 35 Scope: High-risk processing Timing: Before high-risk processing

When DPIA Required

GDPR Requirements

Mandatory for:

• Large-scale systematic monitoring
• Large-scale special category data
• Systematic evaluation/profiling
• Automated decision-making with legal effects
• Biometric data processing
• Genetic data processing
• Location tracking at scale

Examples:

• Employee monitoring systems
• Health data analytics
• Credit scoring
• Facial recognition
• Behavioral advertising at scale

Risk Indicators

High risk if:

• Evaluation or scoring
• Automated decision-making
• Systematic monitoring
• Sensitive data
• Data processed at scale
• Matching or combining datasets
• Vulnerable individuals
• Innovative technology
• Prevents data subject rights

Two or more = DPIA required

DPIA Methodology

Step 1: Necessity Assessment

Determine:

• Processing purpose
• Legal basis
• Necessity
• Proportionality
• Compliance measures

Questions:

• Why process this data?
• Is it necessary?
• Is there a less intrusive way?
• What's the legal basis?

Step 2: Description of Processing

Document:

• Data categories
• Data subjects
• Processing operations
• Data flows
• Recipients
• Retention periods
• Security measures

Create:

• Data flow diagrams
• System architecture
• Process descriptions

Step 3: Consultation

Consult:

• Data Protection Officer
• IT security team
• Legal counsel
• Data subjects (if appropriate)
• Supervisory authority (if high risk)

Document:

• Who consulted
• When consulted
• Feedback received
• Actions taken

Step 4: Risk Assessment

Identify risks to:

• Confidentiality
• Integrity
• Availability
• Rights and freedoms

Assess:

• Likelihood (low/medium/high)
• Severity (low/medium/high)
• Overall risk level

Risk matrix:

           Low    Medium   High
Low        Low    Low      Medium
Medium     Low    Medium   High
High       Medium High     Critical

Step 5: Mitigation Measures

Technical measures:

• Encryption
• Pseudonymization
• Access controls
• Data minimization
• Secure deletion

Organizational measures:

• Policies and procedures
• Training
• Contracts
• Audits
• Incident response

Privacy by design:

• Data minimization
• Purpose limitation
• Storage limitation
• Transparency

Step 6: Sign-off

Approval:

• DPO review
• Senior management approval
• Document decision
• Implement measures

If high residual risk:

• Consult supervisory authority
• Document consultation
• Implement recommendations

DPIA Template

Executive Summary

Overview:

• Processing description
• Risk level
• Key findings
• Recommendations

Processing Details

Information:

• Purpose and legal basis
• Data categories
• Data subjects
• Processing operations
• Data flows
• Recipients
• Retention
• Security

Risk Assessment

Risks identified:

• Risk description
• Likelihood
• Severity
• Overall risk
• Affected rights

Mitigation Measures

Controls:

• Technical measures
• Organizational measures
• Residual risk
• Approval status

Tools and Platforms

DPIA Software

Solutions:

• OneTrust: $2,000-$5,000/month
• TrustArc: $1,500-$4,000/month
• Securiti: $2,000-$6,000/month
• HAIEC Privacy: $299/month

Features:

• DPIA templates
• Risk assessment
• Workflow management
• Collaboration
• Reporting

Free Resources

ICO DPIA template: Free CNIL DPIA software: Free GDPR.eu template: Free

Limitations:

• Manual process
• No automation
• Limited collaboration

Industry-Specific DPIAs

Healthcare

Additional considerations:

• HIPAA compliance
• Patient safety
• Medical research
• Genetic data
• Health outcomes

Special risks:

• Re-identification
• Discrimination
• Stigmatization
• Insurance impact

Financial Services

Considerations:

• Credit decisions
• Fraud detection
• AML/KYC
• Financial profiling

Risks:

• Financial exclusion
• Discrimination
• Profiling accuracy
• Data breaches

HR and Employment

Processing:

• Recruitment
• Performance monitoring
• Workplace surveillance
• Background checks

Risks:

• Discrimination
• Privacy invasion
• Chilling effects
• Power imbalance

Consultation Requirements

Data Protection Officer

DPO role:

• Review DPIA
• Provide advice
• Monitor compliance
• Liaison with authority

When to involve: Early in process

Supervisory Authority

Consult when:

• High residual risk
• Unable to mitigate
• Uncertain about risk
• Novel processing

Process:

• Submit DPIA
• Provide information
• Await guidance (8 weeks)
• Implement recommendations

Data Subjects

When appropriate:

• Significant impact
• Novel processing
• Controversial use
• Public interest

Methods:

• Surveys
• Focus groups
• Public consultation
• Representative groups

DPIA Costs

Internal DPIA

Resources:

• DPO time: 20-40 hours
• IT time: 10-20 hours
• Legal time: 5-10 hours
• Business time: 10-20 hours

Cost: $5,000-$15,000 (internal labor)

External Consultant

Services:

• DPIA facilitation
• Risk assessment
• Report writing
• Recommendations

Cost: $10,000-$30,000

DPIA Platform

Subscription:

• Small business: $3,000-$10,000/year
• Medium business: $10,000-$30,000/year
• Enterprise: $30,000-$100,000/year

Benefits:

• Templates
• Automation
• Collaboration
• Tracking

Common Mistakes

Mistake 1: Too Late

Problem: DPIA after implementation

Solution: Conduct before processing

Mistake 2: Insufficient Detail

Problem: Generic, superficial assessment

Solution: Thorough, specific analysis

Mistake 3: No Consultation

Problem: Missing DPO or stakeholder input

Solution: Early, comprehensive consultation

Mistake 4: Ignoring Residual Risk

Problem: Accepting high risk without authority consultation

Solution: Consult supervisory authority

Best Practices

1. Start Early

Timeline:

• Planning phase
• Before procurement
• Before development
• Before deployment

2. Be Thorough

Include:

• All data flows
• All risks
• All stakeholders
• All measures

3. Document Everything

Maintain:

• DPIA report
• Consultation records
• Risk assessments
• Decisions
• Updates

4. Review Regularly

Triggers:

• New processing
• Changed processing
• New risks
• Incidents
• Annual review

DPIA Lifecycle

Initial DPIA

Conduct:

• Before processing
• Comprehensive assessment
• Full documentation
• Approval

Monitoring

Track:

• Implementation
• Effectiveness
• New risks
• Changes

Review

Triggers:

• Annual review
• Significant changes
• New risks
• Incidents
• Regulatory changes

Update:

• Risk assessment
• Mitigation measures
• Documentation
• Approval

Penalties for Non-Compliance

GDPR Fines

Failure to conduct DPIA:

• Up to €10M or 2% of revenue
• Tier 1 violation

Processing without DPIA:

• Up to €20M or 4% of revenue
• Tier 2 violation

Examples:

• €50M fine (Google, 2019)
• €35M fine (Amazon, 2021)

Other Consequences

Impacts:

• Regulatory action
• Reputational damage
• Customer loss
• Legal liability

Conclusion

Privacy Impact Assessments identify and mitigate data protection risks, ensuring GDPR compliance and protecting individuals' rights. Investment of $5,000-$30,000 per DPIA prevents significant fines and reputational damage.

Key steps:

• Determine necessity
• Describe processing
• Consult stakeholders
• Assess risks
• Implement mitigations
• Document and approve

Investment: $5K-$30K per DPIA Platform: $3K-$100K/year Penalty prevention: €10M-€20M

Ready to conduct your DPIA? Get DPIA template →

---

Related Resources

• GDPR Compliance Guide
• DPIA Template
• Privacy by Design
• HAIEC Privacy Platform