Conducting a Privacy Impact Assessment: A Step-by-Step Guide

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Conducting a Privacy Impact Assessment (PIA) is a vital task for businesses of all sizes. By thoroughly assessing the data collection and processing activities of an organization, PIAs can ensure that effective measures are taken to protect the privacy of data collected and processed. At Genie AI, we provide free PIA templates to help organizations start this process, and our step-by-step guide below will help you get started.

The first step in conducting a PIA is defining its scope. This involves understanding exactly what data is being collected and why it’s being used, identifying any third parties with access to this data, as well as evaluating its sensitivity - understanding how easily it could be misused or accessed without authorization if not properly safeguarded. The next step is to assess the privacy risks associated with the data collection and processing activities in order to develop relevant mitigation measures. This includes putting sufficient safeguards in place such as encryption, secure storage solutions and regular security audits; making sure existing policies comply with applicable laws - examining their adequacy for protecting personal information - as well as implementing additional protections that go beyond legal requirements if necessary.

PIAs are essential because they not only provide organizations with protection from potential legal or financial penalties but also ensure customer trust in their services by proving that due diligence has been taken when handling sensitive information. Furthermore, PIAs can identify potential weaknesses in an organization’s data protection procedures so that appropriate steps can be taken to mitigate them before any harm occurs – providing peace-of-mind for everyone involved.

At Genie AI we believe strongly that everybody should have access to quality legal documents without incurring hefty lawyer fees – which is why we’ve built the world’s largest open source legal template library available today! Whether you’re just starting your business or you’re already managing a large portfolio of customers’ personal information, it’s important to understand where your responsibilities lie when it comes to protecting their data – our free templates make it easier than ever before! Read on below for more detailed guidance on conducting your own PIA and visit us today at [insert website link] for more information on how you can access our template library today!

Definitions (feel free to skip)

Data Sources: Sources of information, such as databases, documents, and records, that store or process personal data.
Selection Criteria: Factors used to determine which data should be included in the assessment and which should not, such as relevance, sensitivity, and potential risk.
Threats: Potential security breaches and risks posed by external factors, such as the data being transferred to a third-party service.
Impact: Consequences of a data breach, such as loss of customer trust, financial losses, and reputational damage.
Security Measures: Measures and technologies implemented to protect the data, such as encryption and access control systems.
Preventive Actions: Procedures taken to reduce the risk of a data breach, such as establishing access control policies and implementing data retention and disposal policies.
Governance Policies: Policies that set out the roles and responsibilities of employees and other stakeholders, as well as the processes and procedures that must be followed when handling personal data.
Data Access Control Policies: Rules and regulations governing access to personal data, as well as the conditions under which access is granted and revoked.
Data Flows: The transfer of data between systems.
Data Monitoring: The process of regularly reviewing data to ensure that it is up to date and complies with applicable regulations.
Validation: To verify the accuracy of the assessment by conducting additional research and analysis, as well as consulting with stakeholders and subject matter experts.

Contents

• Identifying the data that will be covered by the assessment
• Collecting and analyzing relevant data sources
• Defining criteria for data selection
• Assessing the potential risks associated with the data
• Analyzing the potential threats to the data
• Evaluating the impact of a data breach
• Examining safeguards that can be implemented to protect the data
• Investigating security measures and technologies
• Identifying preventive actions
• Developing appropriate policies and procedures
• Establishing governance policies
• Establishing data access control policies
• Identifying key stakeholders and their roles in the assessment
• Defining roles and responsibilities
• Assigning tasks to stakeholders
• Analyzing the data flows associated with the data
• Mapping data flows between systems
• Investigating the internal and external data flows
• Developing a plan to monitor the continuous use of the data
• Establishing a data monitoring timeline
• Designing a data monitoring process
• Documenting the assessment and results
• Creating a report to summarize the assessment
• Archiving all relevant documents
• Validating the findings
• Verifying the accuracy of the assessment
• Ensuring all stakeholders are aware of the findings
• Reviewing and updating the assessment regularly
• Scheduling regular reviews of the assessment
• Modifying the assessment when necessary

Get started

Identifying the data that will be covered by the assessment

• Decide which data sets are applicable to the assessment and which are not
• Identify the location of the data (on-premise, cloud, third-party, etc.)
• Identify the data type (personal, sensitive, confidential, etc.)
• Differentiate between the data that will be covered by the assessment and the data that won’t be
• Understand the data flows, in terms of both collection and processing
• When you have identified the data that will be covered by the assessment, you can move on to the next step.

Collecting and analyzing relevant data sources

• Gather all data sources associated with the project. This can include data sets, documents, emails, and any other relevant sources.
• Review the data sources and determine which ones contain the data that will be covered by the assessment.
• Analyze the collected data sources to assess the sensitivity, accuracy, and privacy implications of the data.
• Separate the data into categories based on the sensitivity of the data.
• Document and store the data sources and their analyses for future reference.

Once you have collected and analyzed all the relevant data sources, you can move on to the next step of the process: Defining criteria for data selection.

Defining criteria for data selection

• Identify the types of data to include in the assessment
• Assess the sensitivity and value of the data
• Consider the storage, handling and sharing of the data
• Establish criteria for data selection such as data origin, purpose, type, content, users, etc.
• Create a framework for the criteria that can help guide the selection process
• When you have established the criteria for data selection, you can move on to the next step of assessing the potential risks associated with the data.

Assessing the potential risks associated with the data

• Identify the types of data collected and analyze the risks associated with each type of data.
• Examine the sensitivity of the data and the potential impact if the data is compromised.
• Evaluate the data retention periods and the purpose for which the data is collected.
• Consider the impact of data sharing with third parties.
• Analyze the potential risks associated with the data access and storage.
• Assess the risk posed by any external vendors or partners who have access to the data.

When you can check off this step:

• After you have identified the types of data collected, analyzed the risks associated with each type of data, examined the sensitivity of the data and the potential impact if the data is compromised, evaluated the data retention periods and the purpose for which the data is collected, considered the impact of data sharing with third parties, analyzed the potential risks associated with the data access and storage, and assessed the risk posed by any external vendors or partners who have access to the data.

Analyzing the potential threats to the data

• Identify the potential threats to the data. Examples of potential threats include unauthorized access, potential for data misuse, and potential for data disclosure.
• Analyze how the data is stored, used, and accessed. Consider the data sources, data formats, and data transmission methods.
• Examine the data’s sensitivity and how it could be used negatively.
• Determine whether the data is encrypted and if it is stored securely.
• Evaluate the threats to the data and the impact of a potential breach.

Once you have identified and evaluated the threats to the data, you can check this off your list and move on to the next step.

Evaluating the impact of a data breach

• Assess the potential impact of a data breach on the data collected, stored and processed.
• Assess any legal, financial or reputational risks associated with a data breach.
• Determine any associated costs, such as those related to notification, credit monitoring or litigation.
• Determine how long it may take to detect a data breach and respond to it.
• Determine the potential for harm to individuals or organizations whose data is breached.

When you can check this off your list and move on to the next step:

• When you have assessed the potential impact of a data breach on the data collected, stored, and processed.
• When you have assessed any legal, financial, or reputational risks associated with a data breach.
• When you have determined any associated costs related to notification, credit monitoring, or litigation.
• When you have determined how long it may take to detect a data breach and respond to it.
• When you have determined the potential for harm to individuals or organizations whose data is breached.

Examining safeguards that can be implemented to protect the data

• Assess the potential risks that may exist in the data collection process.
• Identify existing or potential security measures or controls that could be implemented to protect the data.
• Analyze the effectiveness and cost of these security measures or controls.
• Develop an appropriate plan for implementing the security measures or controls.
• Establish a process for monitoring the implementation and effectiveness of these security measures or controls.

Once you have identified the security measures or controls that can be implemented to protect the data, you can check this step off your list and move on to the next step.

Investigating security measures and technologies

• Analyze each security measure and technology in the system and the data environment
• Identify the risks associated with each security measure and technology
• Assess the effectiveness of each security measure and technology
• Evaluate whether additional security measures or technologies are needed
• Consider the costs associated with each security measure and technology
• When you have investigated each security measure and technology and considered the risks, costs and effectiveness, you can check this off your list and move to the next step.

Identifying preventive actions

• Review the system requirements and data collection processes to determine what preventive actions can be taken to protect the privacy of individuals.
• Look for patterns in the data and determine if any of the collected data is not necessary for the system’s purpose.
• Determine if there are any policies or procedures that can be established or modified to reduce the amount of unnecessary data collected.
• Evaluate measures and technologies that can be implemented to protect the privacy of the individuals.
• Document the preventive actions that have been identified and create a plan to implement them.

How you’ll know when you can check this off your list and move on to the next step:

• When a plan has been established and documented to implement the identified preventive actions.

Developing appropriate policies and procedures

• Develop policies and procedures to ensure that your organization meets all applicable privacy requirements.
• Ensure that all of these policies and procedures are documented and documented appropriately.
• Ensure that these policies and procedures are regularly reviewed and updated.
• Establish mechanisms to ensure that all staff are aware of and comply with these policies and procedures.
• Assign responsibility for implementation and enforcement of the policies and procedures to a designated individual or individuals.
• Establish a process for monitoring compliance with the policies and procedures.
• You can check this off your list when you have developed, documented and shared the appropriate policies and procedures for your organization.

Establishing governance policies

• Define roles and responsibilities of stakeholders involved in the PIA process.
• Develop and agree on a governance policy that outlines the principles and processes for conducting and managing PIAs.
• Make sure the governance policy is consistent with other organizational policies and procedures.
• Distribute the governance policy to relevant stakeholders.
• Monitor adherence to the governance policy.

Once all of the above steps are completed, you can move on to the next step: Establishing data access control policies.

Establishing data access control policies

• Determine the level of access each user requires for data
• Create roles and permissions based on user access levels
• Define the specific data each user can access
• Establish protocols for authentication and authorization
• Establish protocols for data storage and encryption
• Establish protocols for data access control
• Establish protocols for monitoring data access
• Establish protocols for data backup and recovery
• Establish protocols for data archiving
• Establish protocols for data destruction

You will know when this step is complete when you have established data access control policies, protocols and guidelines that are documented, and that everyone in the organization understands and is following.

Identifying key stakeholders and their roles in the assessment

• Identify the stakeholders who will be involved in the privacy impact assessment process.
• Review existing documentation and processes to determine who should be included in the assessment.
• Assign roles and responsibilities to each stakeholder to ensure that the assessment is managed effectively.
• Document the roles and responsibilities for each stakeholder for easy reference during the assessment.

You can check this off your list and move on to the next step when all stakeholders have been identified and assigned roles and responsibilities.

Defining roles and responsibilities

• Assign roles and responsibilities for the privacy impact assessment. This should include people who will be responsible for overseeing the assessment, reviewing the results, monitoring compliance, and making sure that all stakeholders are aware of their roles.
• Determine who will be responsible for collecting the data and deciding how it will be used.
• Establish a clear timeline for the assessment, as well as deadlines for each individual task.
• Develop a process for assigning tasks to stakeholders, such as assigning specific tasks to individuals or teams.
• Document the roles and responsibilities of each stakeholder, along with the timeline and deadlines.

You will know that this step is complete when you have assigned roles and responsibilities to each stakeholder and documented the timeline and deadlines.

Assigning tasks to stakeholders

• Identify the stakeholders and assign tasks to each based on their roles and responsibilities
• Assign tasks to each stakeholder that will cover the necessary activities in the privacy impact assessment
• Ensure that each stakeholder understands their assigned tasks, including the timeline for completion
• Monitor the progress of the tasks to ensure that they are completed on time and in accordance with the requirements of the privacy impact assessment
• Once all tasks have been assigned, reviewed and monitored, the step is complete.

Analyzing the data flows associated with the data

• Identify all the data sources and systems associated with the data
• Identify what type of data is being collected, used, stored, and shared
• Determine how the data is moving between systems and who has access to the data
• Create a data flow diagram or use a mapping tool to visualize the data flow
• Confirm the accuracy of the data flow diagram with stakeholders
• Document the data flow analysis

Once you have identified all the data sources and systems associated with the data, determined how the data is moving between systems, and created a data flow diagram, you can check off this step and move on to the next step.

Mapping data flows between systems

• Identify the data flows between systems involved in the project
• Note the type of data, who is collecting it, who is using it, and where it is stored
• Trace the data flows from start to finish
• Establish which systems the data flows through and between
• Document the flow of data in diagrams
• When all data flows have been identified, documented and mapped, you can check this off your list and move on to the next step.

Investigating the internal and external data flows

• Identify all of the data sources and destinations as part of the data flows.
• Analyze the data to identify any personal or sensitive data that may be at risk.
• Evaluate the potential risks associated with the data flows.
• Determine the need for additional security controls or safeguards to protect the data.
• Document the findings and the associated risks.

When you have identified all of the data sources and destinations, evaluated the potential risks associated with the data flows, and determined the need for additional security controls or safeguards, you can check this off your list and move on to the next step.

Developing a plan to monitor the continuous use of the data

• Identify the data that needs to be monitored
• Create a plan for how to monitor the data - this should include the frequency and methods of monitoring
• Determine the resources needed to monitor the data
• Assign roles and responsibilities for monitoring the data
• Establish a timeline for monitoring the data
• Document the plan and timeline for monitoring the data

You’ll know when you can check this off your list and move on to the next step when you have completed the plan for monitoring the data, assigned roles and responsibilities, established a timeline and documented the plan.

Establishing a data monitoring timeline

• Identify the frequency and duration of data monitoring that is necessary to ensure compliance
• Define the timeline for data monitoring, including when the process should be completed and what should be monitored
• Establish a schedule for data monitoring and ensure that it is followed
• Track when data monitoring took place and its results
• When the data monitoring timeline is complete, you can move on to the next step: Designing a data monitoring process.

Designing a data monitoring process

• Create a list of data processes and activities that will be monitored
• Identify the types of data being monitored
• Identify the specific data elements that will be monitored
• Create a data monitoring plan that outlines the frequency, methods and resources for monitoring
• Develop a process for assessing the data monitoring plan and making necessary changes
• Once the plan is finalized, document the plan and review it with all stakeholders
• You can check this off your list once you have completed the steps above and finalized the data monitoring plan.

Documenting the assessment and results

• Create a document to summarize the assessment process and results
• Include the scope of the assessment, the objectives and process, data sources and flows, results and recommendations
• Document the data privacy risks and mitigating controls
• Document the data privacy compliance process and identify the responsible parties
• Make sure the document is in an easily accessible format for future reference
• When complete, review the document with stakeholders and ensure all issues are addressed
• Make final adjustments and revisions as necessary
• Once the document is finalized, you can check this off your list and move on to creating a report to summarize the assessment.

Creating a report to summarize the assessment

• Collect the data from the assessment process
• Review the data and analyze the results
• Create a PIA report that includes a summary of the assessment process, findings, and recommendations
• Review and revise the report until all parties agree on the results
• Finalize the report and make it available to the relevant stakeholders
• Once complete, the report can be used to inform future PIAs and to help ensure compliance with privacy regulations
• You can check this step off your list when the report is finalized and approved by all parties.

Archiving all relevant documents

• Create an organized folder structure for storing documents and files related to the Privacy Impact Assessment
• Gather, organize and store relevant documents and files in the folder structure created
• Save copies of the documents and files in a secure location and backup system
• Review the folder structure and documents stored to ensure everything is present and accounted for
• When all relevant documents are stored and organized, the archiving step of the Privacy Impact Assessment is complete and you can move on to validating the findings.

Validating the findings

• Review the documents collected in the previous step and analyze them for any potential privacy issues
• Work with your stakeholders to ensure that all relevant privacy issues have been identified and that they are addressed in your proposed solutions
• Review the proposed solutions to verify that they meet the requirements of applicable privacy laws and regulations
• If the proposed solutions do not meet these requirements, revise them accordingly
• Once all privacy issues have been addressed and the proposed solutions have been validated, you can mark this step as complete and move on to verifying the accuracy of the assessment.

Verifying the accuracy of the assessment

• Review the Privacy Impact Assessment (PIA) to verify it accurately reflects the findings
• Verify the accuracy of the PIA by having someone else review it
• Make any necessary changes to the PIA based on the review
• Review the PIA a second time to ensure accuracy
• When the PIA is accurate and complete, you can check this off your list and move on to the next step.

Ensuring all stakeholders are aware of the findings

• Create a report summarizing the findings of the PIA and ensure it is in a format that is accessible to all stakeholders.
• Engage with stakeholders to discuss the report findings and answer any questions they may have.
• Share the report with all stakeholders and ensure they are aware of the findings.
• Follow up with stakeholders to ensure they understand the report and to answer any additional questions they may have.
• Document the communication with stakeholders to ensure they are adequately informed.
• Once all stakeholders have been made aware of the findings, you can check this off your list and move on to the next step: Reviewing and updating the assessment regularly.

Reviewing and updating the assessment regularly

• Develop a plan to monitor any changes to the organization, product, or service that could introduce new privacy risks to ensure that any new risks are identified.
• Establish a schedule to periodically review the assessment, such as annually or when any changes have been made.
• Consider any new technologies or practices that could impact privacy, including those that have been implemented since the last assessment.
• Update the assessment to reflect any changes in the organization, product, or service.
• Ensure all stakeholders are aware of any changes or updates to the assessment.
• Document the review process and any changes made.

Once all of the above steps have been completed, you can move on to the next step of scheduling regular reviews of the assessment.

Scheduling regular reviews of the assessment

• Determine how often the assessment needs to be reviewed and updated, depending on the type of data collected, the purpose of collecting it, and the risks associated with it.
• Schedule reminders on a calendar to review and update the assessment regularly.
• When the assessment is reviewed, document the date in the assessment and save the updated version.
• Once the assessment is reviewed and updated, check this off the list and move on to the next step.

Modifying the assessment when necessary

• Monitor changes in your organization’s technology, processes, and data to identify any potential privacy risks
• Monitor changes in applicable laws to ensure the assessment is compliant
• Consult with the stakeholders and the privacy team to identify any changes that need to be made to the assessment
• Make the necessary changes to the assessment and document them
• Create a plan for implementing the changes
• Check off this step when all the changes have been implemented and the assessment has been updated.

FAQ:

Q: What is the difference between a Privacy Impact Assessment and a Data Protection Impact Assessment?

Asked by Jake on June 1, 2022.
A: A Privacy Impact Assessment (PIA) is an assessment of the potential privacy risks of a given project or activity. It helps to identify and mitigate potential privacy risks before any data processing takes place. A Data Protection Impact Assessment (DPIA) is an in-depth assessment of the data processing activities and the associated risks to individuals’ rights and freedoms. In most countries, a DPIA must be carried out by organisations before they begin any new data processing activities that could involve a high risk to individuals’ rights and freedoms.

Q: How do I know if I need to conduct a Privacy Impact Assessment?

Asked by Hannah on March 12, 2022.
A: If your company processes personal data and the type of data you process is considered sensitive or confidential (e.g. health data, social security numbers, financial information etc.), then it is likely that you need to conduct a Privacy Impact Assessment. Additionally, if you are considering introducing new technologies or systems into your organisation which involve processing personal data, then it is advisable to also conduct a PIA. Furthermore, if you are subject to any regulations or legislation which require you to carry out a PIA, then you should definitely take steps to do so.

Q: Do I need to take into account different jurisdictions when conducting a Privacy Impact Assessment?

Asked by Michael on August 18, 2022.
A: Yes, it is important to take into account different jurisdictions when conducting a Privacy Impact Assessment (PIA). Depending on what country your organisation operates in, there may be different regulations, laws and standards that apply. For example, organisations in the UK must comply with the General Data Protection Regulation (GDPR), while organisations in the US may need to comply with state-level privacy laws as well as federal laws such as the Health Insurance Portability and Accountability Act (HIPAA). Additionally, if your organisation operates globally, then it is important to consider the different laws and regulations that apply in each country in order to ensure that your PIA covers all potential risks.

Q: What kind of information should I include in my Privacy Impact Assessment?

Asked by Tyler on July 3, 2022.
A: When conducting a Privacy Impact Assessment (PIA), it is important to include information about the type of personal data being processed; the purpose for which it will be used; who will have access to it; how long it will be stored for; how it will be secured; how individuals can exercise their rights; and how any potential risks will be mitigated. It is also important to include details about any third-party providers who will be processing personal data on your behalf and how they comply with relevant privacy regulations.

Q: How do I identify potential privacy risks when conducting a Privacy Impact Assessment?

Asked by Abigail on November 8, 2022.
A: When conducting a Privacy Impact Assessment (PIA), it is important to identify potential privacy risks that may be posed by a given project or activity. To do this, you should consider factors such as the type of personal data being processed; who has access to it; how secure it will be; whether it will be shared with any third parties; and whether there are any compliance requirements that must be met (e.g. GDPR). Additionally, you should consider whether any potential risks could lead to harm or distress for individuals whose data is being processed, such as financial loss or identity theft.

Q: What other steps should I take after completing my Privacy Impact Assessment?

Asked by Jacob on May 24, 2022.
A: After completing your Privacy Impact Assessment (PIA), it is important to take steps to ensure that all potential risks have been mitigated and that all necessary measures are in place to ensure compliance with applicable regulations. This includes ensuring that appropriate security measures are in place (e.g., encryption); that staff are aware of their obligations under applicable privacy laws; that processes are documented and regularly reviewed; and that procedures are in place for responding to data breaches or complaints from individuals whose data has been processed. Additionally, it is important to ensure that any third parties who will be processing personal data on your behalf also comply with applicable regulations and have appropriate security measures in place.

Example dispute

Suing a Company for Violating Privacy Policies

• A plaintiff may raise a lawsuit against a company if they have violated their own privacy policies or regulations.
• The lawsuit should reference a privacy impact assessment, as this is a document which outlines the company’s policies on data collection and use.
• The lawsuit should include details on how the company failed to adhere to their privacy policies and regulations, such as collecting data without consent or failing to properly secure and protect data.
• The plaintiff should also be able to provide evidence of how their data was affected by the company’s violation of privacy policies or regulations.
• Settlement can be reached through the company agreeing to pay damages or to make changes to their practices to ensure that similar violations do not occur in the future.
• Damages can be calculated based on the extent of the violation and the impact it had on the plaintiff.

Templates available (free to use)

Privacy Impact Assessment

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