What is a DPIA and when is it mandatory under the GDPR?
Organizations process large amounts of personal data every day. From customer and personnel records to medical information and data within digital systems. But how do you know if a processing activity sufficiently respects the privacy of the individuals involved? And when is an additional assessment necessary?
A Data Protection Impact Assessment (DPIA) helps organizations identify privacy risks in advance and implement appropriate measures. In certain situations, conducting a DPIA is mandatory under the General Data Protection Regulation (GDPR).
In this article, we explain what a DPIA is, when it is mandatory, and how to conduct one in practice.
What is a DPIA?
A DPIA (Data Protection Impact Assessment) is an assessment that allows organizations to investigate in advance what risks the processing of personal data poses to the rights and freedoms of the individuals involved.
With a DPIA, an organization maps out which personal data is being processed, why this processing is necessary, and what consequences it may have for the individuals involved. It then assesses which measures are needed to mitigate the identified risks.
A DPIA is therefore more than just a legal obligation. It is a practical tool for identifying privacy risks early, making well-informed choices, and processing personal data responsibly.
Why is a DPIA important?
Processing personal data carries risks. Think of unauthorized access to sensitive information, unintended data sharing, or automated decision-making with adverse consequences for the individuals involved.
Without a prior assessment, such risks sometimes only become apparent once a system is already in use. A DPIA helps organizations to:
- Identify privacy risks in a timely manner: recognize potential consequences for individuals before processing begins.
- Determine appropriate measures: establish technical and organizational solutions to mitigate risks.
- Demonstrate GDPR compliance: substantiate the considerations made and how privacy risks are managed.
- Make better decisions: incorporate privacy into the development of processes, systems, and technologies.
A well-executed DPIA contributes to the careful and demonstrable handling of personal data.
When is a DPIA mandatory under the GDPR?
According to Article 35 of the GDPR , a DPIA is mandatory when a planned processing of personal data is likely to result in a high risk to the rights and freedoms of natural persons.
Not every processing operation automatically requires a DPIA. The obligation depends on factors such as the nature, scope, context, and purposes of the processing.
The GDPR specifies three situations in which a DPIA must always be conducted:
- Systematic and extensive evaluation of individuals: for example, profiling on which decisions with legal or similarly significant effects are based.
- Large-scale processing of special categories of personal data: for example, health data or personal data relating to criminal convictions and offenses.
- Systematic and large-scale monitoring of publicly accessible areas: for example, certain forms of camera surveillance.
How do you determine if a DPIA is necessary?
To assess whether a DPIA is mandatory, organizations can use the nine criteria provided by European privacy regulators. These relate to, among other things, profiling, automated decision-making, large-scale data processing, monitoring, vulnerable individuals, and innovative technologies.
As a rule of thumb, a DPIA is generally necessary when a processing operation meets two or more of these criteria. A DPIA may also be mandatory if only one criterion is met, depending on the circumstances.
For which processing activities is a DPIA conducted?
A DPIA can be relevant for a wide range of processes and technologies. It is not limited to large IT projects. Existing work processes or changes in how personal data is used can also trigger the need for a DPIA.
Whether a DPIA is actually mandatory must be assessed on a case-by-case basis for each processing activity.
Conducting a DPIA: how does it work?
A DPIA consists of several components that together provide insight into data processing, privacy risks, and the necessary measures. The European Data Protection Board (EDPB) provides additional guidelines for this.
Step 1. Describe the data processing
Map out which personal data is processed, for what purposes, by which parties, and how long the data is retained. Also document the systems involved and any data exchanges.
Step 2. Assess necessity and proportionality
Examine whether the processing is necessary to achieve the intended goal and whether the processing is proportionate to that goal. Consider the legal basis, data minimization, and less intrusive alternatives.
Step 3. Identify privacy risks
Assess the potential impact of the processing on data subjects. Consider data breaches, discrimination, loss of control over personal data, or unlawful decision-making. Then, determine the severity and likelihood of these risks.
Step 4. Determine appropriate measures
Establish technical and organizational measures to mitigate risks. Consider access security, pseudonymization, adjusted procedures, and clear responsibilities.
Step 5. Assess residual risks and record the results
Document the outcomes, the considerations made, and the necessary follow-up steps. If a high risk remains despite the measures taken, the controller must consult the Dutch Data Protection Authority (Autoriteit Persoonsgegevens) before processing begins.
Furthermore, the outcomes of a DPIA must be translated into concrete measures that are actually implemented.
Need support with conducting a DPIA? With DPIA-as-a-Service DPO Consultancy supports organizations in identifying, assessing, and managing privacy risks.
Who is responsible for conducting a DPIA?
The responsibility for a DPIA lies with the controller: the organization that determines the purpose and means of the processing.
In practice, privacy professionals, IT specialists, process owners, and legal advisors often work together on the assessment.
Has the organization appointed a Data Protection Officer (DPO)? If so, they must be consulted during the DPIA process. The DPO also monitors the execution of the assessment.
A DPIA may also be outsourced to external privacy experts. However, the final responsibility remains with the controller.
How often must a DPIA be conducted?
A DPIA must be conducted before processing that is likely to result in a high privacy risk begins. However, the assessment does not end there.
For example, when a new system is introduced, the purpose of the processing changes, or additional personal data is collected, a reassessment may be necessary.
The GDPR does not prescribe a fixed validity period for DPIAs. However, organizations must re-evaluate their DPIA when risks change. The Dutch Data Protection Authority also recommends periodic evaluation, for example once every three years.
Conducting a DPIA with support from DPO Consultancy
A DPIA requires legal knowledge, insight into data processing, and experience in assessing privacy risks. Especially when multiple departments, systems, or external parties are involved, the execution can be complex.
DPO Consultancy supports organizations in conducting, assessing, and updating DPIAs. In doing so, we focus not only on identifying risks, but primarily on translating the results into concrete, actionable measures.
Whether it concerns a new processing activity, an existing DPIA that needs to be updated, or a backlog in assessments: with our services, we help organizations gain structural control over privacy risks.
Want to know more? Discover how DPO Consultancy can conduct a DPIA for your organization, from risk analysis to implementation and assurance.
