Data protection impact assessment (DPIA)

When your organization collects, stores, or uses personal data, the individuals whose data you process become vulnerable to risks.

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Samantha Spiro
Samantha has over seven years of experience as both a content manager and editor. Bringing contact info to life is the name of her game. Some might say she’s a bit ‘SaaS-y.’

DPIA is a system for identifying and avoiding risks associated with processing personal data. It is one of the primary responsibilities under the GDPR, which ensures that organizations consider the impact of their data handling practices on protecting individuals. DPIAs also help prevent breaches, potential legal fines, and reputational loss.

While DPIAs are common in EU and UK regulations, other versions, such as Privacy Impact Assessments, are used in regions like the U.S. to consider privacy risks and compliance requirements.


The importance of DPIA by numbers

DPIA reduces risks before they become compliance violations, and organizations using DPIAs benefit from stronger security and public trust.

Let’s consider these insights:

 

  • 92% of companies handling sensitive data have reported that DPIAs improve their risk management.
  • 68% of organizations conducting DPIAs prevent regulatory fines.
  • Fines for GDPR violations were more than €2.5 billion in 2023.


As AI-driven data processing expands, future DPIA regulations may require stricter risk evaluations, particularly in sectors like healthcare and finance. Companies must adapt their compliance strategies to stay ahead.

 

A word from the experts

 

Eduardo Ustaran

Global Privacy Law Expert @ Hogan Lovells

DPIAs aren’t just another compliance box to tick – they’re bricks for building a privacy-first business.


According to experts, companies embedding DPIAs into their development cycles will
increase consumer confidence and avoid reputational harm from data mismanagement or security failures.

Real-world examples

Many organizations are now integrating DPIAs to ensure privacy compliance and risk mitigation.

 

For instance, financial services firm, FinSecure, conducted a Data Protection Impact Assessment before deploying an AI-driven chatbot. By identifying risks, enhancing security, and ensuring GDPR compliance, the company reduced compliance risks by 30%, improved customer trust, and strengthened cybersecurity, preventing potential data breaches and regulatory fines.

Other examples include British Airways, fined £20 million under the GDPR for its 2020 breach, which involved the leakage of customers’ records. This incident would have revealed its weakness had it undertaken an advanced DPIA before deploying these security systems.


Solving the biggest challenge with DPIA 

One of the most significant barriers to doing a Data Protection Impact Assessment is how painfully slow they are, holding up product launches and innovation. Manual risk assessments, documentation, and compliance checks will slow down teams and make it feel like a roadblock, not a safeguard.

 

Companies can overcome this by implementing automated DPIA tools. These tools will guide them more systematically toward risk analysis, documentation, and compliance tracking. Some platforms significantly reduce manual effort and will provide organizations with much-needed help in identifying and mitigating privacy risks. 

 

Your handpicked tips for using DPIA 

  1. Identify high-risk data processing activities.
  2. Consult privacy teams during the planning phase.
  3. Use automated DPIA tools for efficiency.
  4. Keep detailed documentation for compliance audits.
  5. Regularly review and update DPIA processes.

Author

  • Samantha has over seven years of experience as both a content manager and editor. Bringing contact info to life is the name of her game. Some might say she's a bit 'SaaS-y.'

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