What is Privacy Impact Assessment?

Privacy Impact Assessments are a proactive tool for embedding privacy-by-design into organizational processes. Under GDPR Article 35, a DPIA is mandatory when processing is likely to result in a high risk to individuals' rights and freedoms — specifically when using new technologies, conducting large-scale profiling, systematic monitoring of public areas, or processing special category data at scale. The assessment involves describing the intended processing operations and their purposes, evaluating the necessity and proportionality of processing, assessing risks to data subjects, and identifying measures to mitigate those risks. If a DPIA reveals high residual risks that cannot be adequately mitigated, the organization must consult with the relevant supervisory authority before proceeding. While GDPR codifies the requirement, the concept applies broadly: HIPAA encourages privacy-focused risk analysis, ISO 27001 supports it through risk assessment processes, and NIST includes privacy assessments in its privacy framework. Organizations should integrate PIAs into their project management methodology so that privacy considerations are evaluated at the design stage.