Protecting personal information in a technologically dependent world plagued by cybercrime is especially critical now than ever. Data integrity is constantly in jeopardy because of the increasing threats that individuals and corporations face. Numerous complex and varied hazards exist, like identity theft and unauthorized access. These can damage your business, finances, and reputation drastically.
For these reasons, you should urgently acknowledge the significance of Data Protection Impact Assessments (DPIAs) as a vital tool for identifying and reducing any data protection risks arising from projects your business undertakes and affecting your business or the people it interacts with. Through negotiating the complexity of cybersecurity risks, DPIAs allow organizations to comply with GDPR rules strategically.
However, conducting a DPIA can come with its own set of questions, which might overwhelm you. For instance, how often a DPIA should be conducted? Or, what are the core components of a data protection impact assessment? Whether you are a newbie or a veteran security professional, conducting a DPIA can be difficult. This is why we at Akitra have curated this blog for you. This article will answer the five most frequently asked questions about data protection impact assessments.
But first, let’s define what a data protection impact assessment is.
What is a Data Protection Impact Assessment (DPIA)?
A DPIA is a process designed to help organizations (known as ‘data controllers’) identify and minimize the data protection risks of a project. Data Protection Impact Assessments are essential to the accountability of an organization’s obligations under the UK General Data Protection Regulations (GDPR) and the Data Protection Act 2018.
DPIAs help organizations assess and demonstrate their compliance with their data protection obligations. In essence, DPIA aims to detect potential hazards associated with gathering, storing, utilizing, or processing personal data. It is now an official part of the “data protection by design” principle, as updated in article 35 of GDPR. According to this new law, your cloud-hosted business must perform a data protection impact assessment before processing a customer’s data if it processes any personal data that poses a danger to the freedom and rights of the general public.
Various legal experts agree that DPIAs are among the most important parts of the GDPR since its main goals are to give people more control over their data and establish uniform data protection laws. While restricted to the European Union, many non-EU companies engaged in international commerce must employ the GDPR’s provisions, such as the DPIA obligations.
Now, let’s deeply dive into the five most frequently asked questions about data protection impact assessments (DPIAs).
Five Most Frequently-Asked Questions About Data Protection Impact Assessments (DPIAs)
Here are the five most frequently-asked questions about data protection impact assessments:
- How Often Should a Data Protection Impact Assessment (DPIA) Be Performed?
A data protection impact assessment’s frequency is determined by several variables, such as the type of data being processed, the incidence of modifications or new hazards, and the processing’s importance to privacy. It is generally advised to examine and update the DPIA regularly.
- What are the Core Components of a Data Protection impact Assessment?
The Data Protection Impact Assessment (DPIA) is generally divided into three primary sections:
- a systematic explanation of the intended data processing activities and their goals;
- an evaluation of the processing activities’ need and proportionality to the goal; and,
- An evaluation of the risks to the freedoms and rights of data subjects and the safeguards, processes, and mitigation actions planned to lessen such risks.
- How Do I Know If My Company Needs a DPIA?
In general, you should consider doing a DPIA if you want to work on a project that uses personal data. In addition to this, a DPIA must be taken into account before beginning any:
- assessment or rating (for example, a financial institution checking clients’ information against a database to prevent money laundering or a credit reference);
- Serious consequences of automated decision-making (e.g., processing that may lead to the exclusion of or discrimination against persons);
- Processing of extremely personal or sensitive personal data (such as when hospitals retain patients’ medical records or when private investigators retain the details of offenders);
- Systematic monitoring (which involves the processing used to observe, monitor, or control data subjects, including gathering data through networks or the systematic observation of a publicly accessible place);
- large-scale processing (large scale owing to the quantity of data, the number of data subjects, the time and performance of the processing, or the geographic reach of the processing activity);
- Processing that includes keeping a person from using a service, contract, or exercising a right (like when banks check a customer’s credit history before extending credit to them);
- Processing of personal information about those who are considered vulnerable (such as children, workers, and those in need of particular protection); and,
- Dealing with creative organizational and technical solutions (such as some “Internet of Things” apps that affect people’s daily lives and privacy).
- What is the Difference Between a State Data Protection Officer and a Data Protection Officer in an Association?
Here is how a state data protection officer is different from a data protection officer in an association:
State Data Protection Officer: This individual is appointed by the state parliament and oversees and implements data protection regulations in a particular German federal state. They are the initial point of contact for public complaints, offer advice, and conduct inspections without direct connection to any business.
Data Protection Officer in an Association: This individual is designated by a particular association to oversee the organization’s compliance with data protection regulations. This individual oversees data processing, interacts with the supervisory authority, and provides employee training.
- What Do I Need To Consider Before Carrying Out a Data Protection Impact Assessment?
Before performing your data protection impact assessment (DPIA), you need to take into account:
- What information is handled and why (this is the project’s goal);
- If the processing of the data is anticipated to put the data subjects at a high risk;
- What the advantages of processing the data are (i.e., take into account the benefits for both society and yourself);
- How you will make sure that people’s rights over their data are upheld and supported;
- Any hazards that might arise from the way you process the data and how you might mitigate or remove them; and,
- Whether there is another way (especially if it would be less invasive) to accomplish the same goal.
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