A privacy impact assessment (PIA)

A privacy impact assessment (PIA) is a process to help you identify and minimize data privacy risk. Specifically, this type of assessment helps identify the risks to an individual when an organization collects personal information for a business purpose. There are many reasons an organization might collect personal data. For example, all businesses must collect personal information from employees to process payroll taxes. Many businesses collect personal information from customers to ship goods and services or conduct research to create new products.An organization should complete a PIA any time it intends to collect a new data element from an individual, such as name, date of birth, age, race, sex, address, biometric identifier, or any other element of personal data. Completing a PIA helps an organization think deeply about privacy issues and risks related to collecting specific types of data. To complete a PIA, an organization should:

Clearly specify the data that it wishes to collect from a person.
Clearly document why it must collect that data.
Describe how the data will be collected, used, and stored.
Document the risks of collecting, using, and storing, the data.
Describe the measures that the organization will take to reduce the risks of collecting, using, and storing the data.

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