Executive Summary
A Data Protection Impact Assessment is a structured process for identifying, evaluating, and addressing privacy risks in data processing activities. While DPDPA does not mandate DPIAs in all cases, the practice represents sound privacy governance and may be required for certain processing by Significant Data Fiduciaries. This guide provides a methodology for conducting meaningful assessments.
Key Takeaways
- 1Conduct DPIAs early in project development when design changes are still feasible
- 2Involve diverse perspectives including technical, legal, and business stakeholders
- 3Focus on actual risks to individuals, not just compliance checkboxes
- 4Document the assessment thoroughly for accountability demonstration
- 5Revisit assessments when processing changes materially
1When to Conduct a DPIA
DPIAs are most valuable for processing that presents elevated privacy risk. Indicators include processing of sensitive data, large scale processing, systematic monitoring, automated decision making, and novel technology applications. Organisations should establish criteria for when DPIAs are required or recommended.
2Establishing the Assessment Team
Effective DPIAs require diverse expertise.
Project Stakeholders
Include representatives from the team proposing the processing. They understand the business objectives and operational constraints.
Privacy Expertise
The DPO or privacy team provides regulatory perspective and risk assessment methodology.
Technical Expertise
IT and security specialists assess technical safeguards and feasibility of mitigation measures.
Business Perspective
Senior stakeholders can evaluate proportionality and make decisions on risk acceptance or redesign.
3Describing the Processing
The DPIA begins with comprehensive documentation of the proposed processing.
Processing Purpose
Articulate why the processing is being conducted. What problem does it solve? What benefit does it deliver?
Data Description
Specify what personal data will be collected, from whom, and through what means.
Processing Operations
Detail how data will be used, stored, shared, and eventually deleted. Include data flows and system architectures.
Legal Basis
Identify the legal basis for processing and verify it is appropriate for the activities described.
Recipients
List entities that will receive personal data and their roles (joint controllers, processors, independent controllers).
4Assessing Necessity and Proportionality
Before assessing risks, confirm that the processing is necessary and proportionate to its objectives.
Necessity Analysis
Can the stated objectives be achieved without this processing or with less personal data? Have alternatives been considered?
Proportionality Evaluation
Is the privacy intrusion proportionate to the benefits? Would a reasonable person consider the processing fair?
Data Minimisation Check
Is collection limited to what is necessary? Are unnecessary data points being gathered by default?
5Identifying Risks
Risk identification examines potential harms to Data Principals from the proposed processing.
Harm Categories
Consider physical, material, and non-material harms including financial loss, reputational damage, discrimination, loss of confidentiality, and psychological impact.
Threat Sources
Identify who or what could cause harm: malicious external actors, internal misuse, system failures, or inadequate processes.
Vulnerability Analysis
Examine where controls are weak or absent, creating opportunities for risks to materialise.
Risk Scenarios
Develop specific scenarios describing how risks could materialise. Concrete scenarios support more meaningful assessment than abstract risk categories.
6Evaluating Risks
For each identified risk, assess likelihood and severity to determine overall risk level.
Likelihood Assessment
How probable is the risk materialising? Consider threat capability, vulnerability exploitability, and existing controls.
Severity Assessment
If the risk materialises, how significant is the harm? Consider the nature of data, number of individuals affected, and reversibility of harm.
Risk Rating
Combine likelihood and severity to assign overall risk ratings. Use a consistent methodology across assessments for comparability.
Prioritisation
Rank risks to focus mitigation efforts on the most significant concerns.
7Identifying Mitigation Measures
For each significant risk, identify measures to reduce likelihood or severity.
Technical Controls
Security measures, access controls, encryption, anonymisation, and technical safeguards that reduce risk.
Organisational Measures
Policies, procedures, training, and governance mechanisms that address identified risks.
Design Changes
Modifications to the processing itself that eliminate or reduce risk. Sometimes the most effective mitigation is not doing something.
Residual Risk Assessment
After mitigation, reassess the risk level. Some residual risk is inevitable; the question is whether it is acceptable.
8Decision and Documentation
The DPIA concludes with a decision on whether to proceed and comprehensive documentation.
Management Decision
Based on the assessment, decide whether to proceed with processing, implement modifications, or abandon the project. Senior management should approve high risk processing.
Accountability Documentation
Document the entire assessment including methodology, findings, decisions, and rationale. This demonstrates compliance and supports future reviews.
Implementation Planning
For approved processing, plan implementation of identified mitigation measures with clear timelines and responsibilities.
Review Triggers
Identify circumstances that should trigger reassessment, such as significant changes to processing or new risk information.