What is the purpose of a data protection impact assessment?

The purpose of a data protection impact assessment is to assess the impact of data processing on privacy. This process involves identifying and mitigating potential risks to individuals' data protection rights and freedoms that may arise from the collection, processing, and storage of personal data. Conducting such an assessment is a key requirement under data protection laws, such as the General Data Protection Regulation (GDPR), which emphasizes the need for organizations to take responsibility for privacy and to ensure that personal data is handled in a way that respects individuals' privacy rights.

By evaluating how specific data processing activities might affect individuals' privacy, organizations can implement appropriate measures to minimize risks, demonstrating compliance with legal obligations and fostering trust with customers and stakeholders. This assessment is crucial for promoting transparency and accountability in how personal data is managed and processed by organizations.