A Data Protection Impact Assessment (DPIA) is a process where employers identify and analyze data protection risks associated with a project. However, when exactly should employers consider using a DPIA? What makes it effective?
A DPIA should be implemented before any type of processing occurs and becomes highly risky for individuals. The DPIA is an excellent indicator for revealing the severity of risk for each individual employee.
Whichever type of harm there is, it still poses a threat to employees and employers. Therefore, in this article, we will discuss more on what are the main reasons employers should be using a DPIA to reveal risks.
Let’s dive right in!
What is associated with risks and how does the DPIA reveal them?
When we mean to reveal risks, we are talking about any physical, material and non-material harm done to individuals (in this case, your employees). Therefore, in order to be able to assess risks, you need to identify the severity and likelihood of potential harm that can be done to individuals. After all, that is the duty of the DPIA to assess the level of risk.
The initial screening question comes down to whether the process will become risky or not and allows you to learn more about a DPIA
What are the types of processing automatically required by the DPIA?
According to Article 35, there are three processing types based on what the DPIA requires:
- Large usage of sensitive/personal data: This includes processing large amounts of special categories of data referred to in Article 9 or sensitive information regarding criminal offenses and convictions.
- Public monitoring: Systematic monitoring of publicly accessible areas on a large scale.
- Systemic and extensive evaluations: Regarding natural persons based on profiling, automated processing and any decisions regarding legal effects that relate to the natural person or that affect them.
What kind of other factors poses high risks?
According to Article 29, here are the following criteria that pose a high risk:
- Evaluation
- Automated decision-making
- Sensitive data of a highly personal nature
- Matching datasets
- Large-scale data processing
- Combining datasets
- Data that concerns unprotected data subjects
- Applying new technological and organizational solutions
- Not allowing data subjects to use a contract or service
Usually, when two or more of these criteria occur, you’ll definitely need to have a DPIA. Therefore, you should always be able to document your reasons. However, don’t only focus on that. Sometimes, you may need to use a DPIA even if one of these criteria’s present.
You need a DPIA if you plan to do the following
The Information Commissioner’s Office (ICO) requires you to have a DPIA if you plan the following:
- Use of innovative technology: A DPIA is required when the processing is combined based on the European guidelines in most recent technologies, including AI.
- Profiling: Large-scale profiling of individuals.
- Processing genetic data: A DPIA is required whenever the process combines criteria from the European guidelines.
- Data matching: Whenever you match or compare sensitive data retrieved from several sources.
- Invisible processing: Personal data processing that hasn’t been obtained directly from a data subject. In this case, you need a DPIA when processing is combined with any criteria mentioned above based on the European guidelines.
- Unauthorized personal data usage: Usually occurs when you collect data without providing any privacy policy and notice.
- Physical harm: Processing that includes an online data breach to an extent where an individual might pose a threat that can physically damage them.
- Service denial: Decisions regarding an individual’s access to a service, product, or benefit related to automated decision-making involves special data processing.
What are the types of DPIAs?
There are three types of DPIas that you need to know:
- Guidelines: The European Data Protection authorities provide you with guidelines that need to comply with GDPR standards. These guidelines connect to DPIAs, but there’s not enough evidence to know when they should be expected.
- DPIAs that are mandatory: The ICO makes a public of all process operations subject to mandatory DPIAs. On the other hand, the GDPR will inform you when you’ll need DPIAs.
- Multiple DPIAs: Employers don’t have to conduct numerous DPIAs This will all depend on the risk involved and the case context.
The benefits of conducting a DPIA
DPIAs have several benefits that aren’t only for the reason of complying with the GDPR. Here are the following reasons why you should set up a DPIA:
- It makes it easier for you to comply with other data privacy regulations
- Reduces the risk of meeting legal obligations
- Much less chance of online data breaches
- Lower risk of facing any fines due to lawsuits or data breaches
The types of criteria that don’t require you to have a DPIA
You don’t need a DPIA under the following criteria:
- You already have a similar DPIA: If your DPIA is already set up and you prove its entire purpose and context are identical, you won’t need to provide a new DPIA.
- Legal obligations: In case you are processing data concerning legal obligations or for public cases, you aren’t required to have a DPIA. However, this is only valid once your data meets at least one criterion.
Based on legal obligations, you won’t need to acquire a DPIA if you are following at least one of these criteria:
- You have a statutory basis for data processing.
- You aren’t subject to any DPIA obligations based on what is stated in the applicable legislation.
- You conducted a data protection risk assessment (DPRA) when the GDPR came into law in early 2018.
- The statutory code or legal provision regulates the processing operation.
What are the essential steps you should take for conducting a DPIA?
Find out if you need a DPIA
Before you discover whether you need a DPIA or not, you need to clarify the following aspects of your data processing:
- The context of the data and if internal or external factors are affecting it
- What type of data is going to be processed
- Reasons why you want to process the data
- What are you planning to do with that data
Find out who you should involve
Who should you involve when you want to conduct a DPIA? In this case, you need someone who will be in charge of your project, such as a Data Protection Officer (DPO). Alternatively, you can also hire a data processor to ask for assistance and information.
In several other cases, many organizations will also seek to hire a lawyer, security analyst, information specialist, etc. Therefore, it’s always essential for you to decide what you are planning to do.
Assess your data protection and the risks associated with it
Set up your prioritized list of assets and identify what risks can be related to them. For instance, one of your assets might be a server where you store data and risks with that data might include online breaches, hardware failure, etc.
Therefore, whenever you set up a risk analysis, you can consider the following:
- Potential threats that may affect the way the organization is operating
- Key business processes that require the data assets
- Lost data that impacts the way a business operates
Evaluate and identify data protection processes
It’s always important to assess the risks and the potential solutions before you set up a DPIA. Here are some examples we took:
- Risk: You retain Personal Identifiable Information (PII) longer than needed.
- Solutions: You can consider using automated data retention workflow tools
- Problems: You might run into data breaches, where online attackers will gain unauthorized access to PII.
- Another solution: You can increase the testing and security monitoring.
Create a DPIA final report
If you want to create your final DPIA final report, it should contain the following information:
- An in-depth description of the project and what purpose it holds
- An in-depth explanation of how you will comply with GDPR standards
- An assessment concerning the risks associated with data privacy and protection
- An assessment concerning data processing needs
You have two alternatives when publishing DPIAs. First, it can either be fully or partially, even if the GDPR doesn’t ask for it. Additionally, it’s always important to ask for approval from all parties involved with the DPIA, such as the DPO or your team members.
What did we learn about DPIAs?
DPIAs are excellent assessments you can use for assessing risks. However, it’s always important to see if you need a DPIA based on what we listed above in the article. DPIAs are excellent for identifying risks at a higher level, so you can protect your team from potential risks and threats.
About the Author
Tony Ademi is a freelance SEO content and copywriter. He has been in the writing industry for three years and has managed to write hundreds of SEO-optimized articles. Moreover, he has written articles that have ranked #1 on Google. Tony’s primary concern when writing an article is to do extensive research and ensure that the reader is engaged until the end.