What is a Data Protection Impact Assessment (DPIA)?
A Data Protection Impact Assessment (DPIA) is required when data processing may result in a high risk to the rights and freedoms of individuals.
It helps organisations evaluate how their processing activities might affect people and how to protect personal data from potential risks or external threats.
Under Article 35 of the GDPR, a DPIA is mandatory when processing involves:
- Systematic and extensive evaluation of personal data using automated means (for example, profiling).
- Large-scale processing of special category data or data related to criminal convictions and offences.
- Systematic monitoring of publicly accessible areas (for example, CCTV cameras in public spaces).
Why are DPIAs important to companies?
DPIAs are a key part of GDPR compliance and good privacy management. They help organisations identify, assess, and reduce data protection risks before they cause harm.
Key benefits include:
- Risk identification: Helps identify privacy risks and potential negative impacts on individuals.
- Compliance: Required by law for certain high-risk processing activities.
- Proactive protection: Encourages early identification and mitigation of privacy risks.
- Transparency: Demonstrates accountability and a responsible approach to data protection.
- Trust: Builds confidence with customers, partners, and regulators.
- Data minimisation: Promotes collecting only what is necessary for the intended purpose.
- Comprehensive oversight: Ensures all aspects of data processing are considered — necessity, security, and proportionality.
- Documentation: Provides a record of compliance efforts and risk assessments.
- Legal defence: Shows that reasonable steps were taken to protect data in case of a breach.
- Competitive advantage: Demonstrates strong privacy governance, which customers increasingly value.
What are the most important aspects of a DPIA?
A complete DPIA should include the following steps:
- Identify the processing activity: Define what data processing is being reviewed.
- Describe the activity: Document its purpose, scope, and data types involved.
- Assess necessity and proportionality: Determine whether the processing is justified and limited to what’s needed.
- Identify and assess risks: Evaluate potential privacy risks and their severity.
- Consult stakeholders: Involve relevant internal or external parties for input.
- Mitigate risks: Plan and implement measures to reduce or eliminate identified risks.
- Assess legitimate interests (if relevant): Ensure they don’t override individuals’ rights.
- Document the assessment: Keep a formal record of all findings and decisions.
- Consult the supervisory authority: If required, before proceeding with high-risk processing.
- Implement and review: Apply mitigation measures and ensure ongoing compliance.
What is a Legitimate Interest Assessment (LIA)?
Under the GDPR, legitimate interests is one of the six lawful bases for processing personal data.
Before relying on it, organisations should carry out a Legitimate Interest Assessment (LIA) to ensure fairness and balance.
This involves:
- Identifying the legitimate interest: Define the organisation’s or third party’s legitimate purpose.
- Assessing necessity: Demonstrate that processing personal data is necessary to achieve that purpose.
- Balancing interests: Weigh the organisation’s interests against the individual’s rights and freedoms, and put safeguards in place if needed.
If the LIA shows that the organisation’s interests are not overridden by the individual’s, the processing can proceed under the legitimate interests basis.
However, the assessment should be documented and reviewed regularly to ensure ongoing compliance.
Can personal data be transferred outside the EU under the GDPR?
Yes, but only if done in compliance with GDPR requirements.
Organisations must use approved mechanisms such as Standard Contractual Clauses (SCCs) or Binding Corporate Rules (BCRs) to ensure appropriate protection for international data transfers.
If you work with data processors or sub-processors established in the United States, you can read more about compliant transfers under the EU–U.S. Data Privacy Framework.