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If your business collects and uses the personal information of your customers, it’s recommended you conduct a Privacy Impact Assessment to mitigate privacy risks.  

This article takes a close look at Privacy Impact Assessment (PIA), how to conduct it, and why it is important to do it. Read on!

Privacy Impact Assessment Defined

PIA is a process for managing data privacy risks that stem from processing personal data. A PIA requires a business or an organization to assess its existing operations to identify data privacy and security threats, evaluate the effect and likelihood of those risks, and devise a strategy for dealing with them. This assessment includes an evaluation process that ensures sustainability and continuity.

The PIA is conducted in unity with the Australian Privacy Principles (APP), mandating businesses and organizations to handle personal information transparently.

Why Your Business Needs a PIA

Though not mandated by law, conducting a PIA for your projects will bring an array of benefits to your business. Moreover, if your business is an APP entity, the Office of the Australian Information Commissioner (OIAC) strongly recommends you undergo a PIA for projects passing beyond the basic PIA privacy risk measure known as Threshold Assessment. 

Some of the benefits of conducting a PIA for your business include:

  • Assured privacy law compliance
  • Enhanced corporate image by adhering to community values and expectations about managing personal information
  • Reduced legal and management expenses by mitigating risks

What You Risk If You Don’t Conduct a PIA

Meanwhile, as an operator of an APP business, some of the risks that your business is likely to suffer from avoiding conducting a PIA includes:

  • Privacy law violations that can lead to legal suits
  • Creating a negative corporate image as a non-transparent business that disregards privacy concerns of personal information
  • Identifying privacy issues during the project rollout, causing unforeseen expenses and insufficient measures in mitigating privacy risks

Knowing the benefits and risks of conducting and not conducting a PIA, it’s time to learn the steps in doing so.

Steps in Conducting a PIA

  1. Threshold assessment (privacy risk assessment of a project) 
  2. Planning the PIA (forming a PIA team and its conduct)
  3. Describing the project (why personal information is needed)
  4. Consulting with stakeholders (coordinating with all parties involved)
  5. Mapping information flow (laying out the process of handling personal information)
  6. Analysing privacy impact (checking compliance with privacy laws and the APPs)
  7. Managing privacy (developing strategies to mitigate privacy risks)
  8. Offering recommendations (recommending other means to push through with the project if it breaches privacy laws)
  9. Reporting (formal written presentation of the conduct of PIA)
  10. Responding and reviewing (impose suitable recommendations and a third-party review of the PIA)

What’s next?

The 21st century is an era where personal information is so important that many business models and economies are inclined to collect and consume it. Conducting a PIA in your business project goes beyond mitigating privacy risks. As mentioned above, there are benefits and potential hazards your business can experience by conducting and not conducting a PIA. The choice is yours.

If you are thinking of conducting a PIA for a business project set to roll out, do not hesitate to run to cybersecurity consultants in Sydney & Melbourne. Rabbon is a cybersecurity service and solutions company with a team of highly experienced cybersecurity consultants to help businesses like you become cyber resilient. Connect with our experts today!

Cybersecurity is what we do

Rabbon is a Cybersecurity company based with offices in Sydney and Melbourne. We lead a team of Cyber security Consultants and GRC Consultants, who help organisations become cyber resilient by providing access to effective and affordable cybersecurity services. We believe that “Cybersecurity is for everyone

You can contact our Cyber Security Consultants for an obligation free consultation.

Phone : +61 2 80513207

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