Impact Assessment

A systematic evaluation of how a project, system, or activity will affect privacy, data protection, or other interests. Privacy impact assessments (PIAs) and data protection impact assessments (DPIAs) are specific types examining privacy implications. Impact assessments identify risks, evaluate likelihood and severity, assess necessity and proportionality, identify mitigation measures, and document findings and decisions. The assessment process helps organizations identify problems before implementation, design privacy-protective solutions, demonstrate accountability, and make informed risk decisions. Impact assessments should be conducted early in project development, involve appropriate stakeholders including privacy experts, document the decision-making process, identify residual risks after mitigation, and receive appropriate approval. Regular review and updates ensure assessments remain accurate as circumstances change. Impact assessments are both good practice and legal requirements under laws like GDPR for high-risk processing.