Your go-to hub for Expert Insights,
Publications, and Resources on
data privacy and compliance

Data privacy can easily overwhelm you. It can be challenging to protect customers' personal information but it is absolutely essential. With the introduction of the Digital Personal Data Protection Act in India, businesses now have to navigate a new regulatory landscape to protect personal data.

That's where tools like privacy impact assessments (PIAs) and data protection impact assessments (DPIAs) can help identify and fix gaps in your privacy practices.

While PIAs and DPIAs share the goal of improving privacy protections, they differ in their focus and application. This blog explores the distinctions between PIAs and DPIAs and offers insights into their roles and compliance strategies.

PIA vs DPIA

A PIA helps organisations spot privacy risks in new projects or policies and create strategies to address those risks. Following the 'privacy-by-design' approach, PIAs are typically done at the beginning of a project, like during a new launch, acquisition, or major system update.

A DPIA, on the other hand, is a detailed process that helps organisations assess potential data protection risks when processing personal data. It evaluates whether existing controls are enough to manage those risks. DPIAs should cover the nature, scope, context, and purpose of the data processing, and outline how the organisation plans to mitigate any identified risks.

Why are PIAs Important?

PIAs are carried out to assess privacy risks in projects that handle personal data and ensure compliance with data privacy laws. These assessments can identify various privacy risks, such as:

• Unauthorised access to personal information that could lead to identity theft and fraud.
• Surveillance, like tracking individuals' online activities without their consent.
• Data breaches, which involve unauthorised access or disclosure of sensitive information.
• Financial fraud, where financial details like credit card numbers or bank accounts are misused.

By spotting these risks early in a project's development, PIAs help organisations put the right safeguards in place. This might include updating privacy notices, respecting consent preferences, maintaining strong security measures, and setting up incident response plans to quickly deal with data breaches.

Why Do You Need a DPIA?

No matter if you're a small business or a large corporation, DPIAs are essential. Here’s why you need them:

• Compliance with Data Protection Regulations
  DPIAs ensure that organisations comply with data protection laws, especially for high-risk data processing activities. They help identify and address potential privacy risks, demonstrating a commitment to respecting privacy rights, avoiding legal penalties, and building user trust.
• Proactive Risk Identification and Mitigation
  DPIAs allow organisations to proactively identify and manage privacy risks related to data processing activities. By evaluating potential harms and implementing measures to manage risks, organisations can prevent data breaches, unauthorised access, or misuse of personal information. This proactive approach protects individuals’ privacy and the organisation’s reputation and builds confidence among consumers and stakeholders.

Undertaking Assessments Under the DPDPA

The introduction of the Data Protection Bill shows India's commitment to aligning its data protection standards with global ones like the European Union's General Data Protection Regulations (GDPR). While the Bill doesn't specifically mention PIAs, it incorporates the principles of privacy by design. It, however, requires Significant Data Fiduciaries to conduct DPIAs before starting any data processing project.

Implementing PIA Under DPDPA

A PIA within India's DPDP Act framework would involve certain key steps:

• Recognising the Need: organisations must determine which processes and systems involving personal data require a PIA.
• Assessment Process: This step involves thoroughly evaluating the processing activities, considering the nature, scope, context, and purposes of the processing, and assessing the risks to individuals' rights and freedoms.
• Risk Mitigation Strategies: Based on the assessment, organisations must create and apply measures to mitigate the identified risks, ensuring they comply with DPDP requirements.
• Documentation: Properly documenting the PIA process and its outcomes is essential to demonstrate compliance with DPDP mandates. This documentation may need to be provided to the regulatory authority if requested.

Conducting a DPIA under the DPDPA

Organisations should conduct an initial Data Privacy Impact Assessment within the first three to six months. This assessment should focus on evaluating the current privacy practices and setting up a framework.

Regular assessments should then be done every six to twelve months. These can include policy updates, assessments for high-risk operations, and the implementation of consent management and breach reporting systems.

For periodic reviews every twelve to twenty-four months, using automation tools can simplify these tasks. Additionally, obtaining external certifications can demonstrate ongoing compliance. Regularly performing these checks helps organisations stay updated with changing regulations and ensures they are protecting personal information effectively.

You Don’t Need to Conduct Assessments on Your Own

Discussing PIAs and DPIAs within India's data protection framework helps promote a culture of privacy, which is crucial for the sustainable growth of its digital economy. By incorporating these assessments into the data processing lifecycle, India can ensure its digital progress is both innovative and respectful of individual privacy rights.

Many companies already have a process for conducting DPIAs, but human error in these manual methods can lead to details being missed and eventual non-compliance. Collaborative efforts and external support can reduce the documentation burden on your organisation.

Instead of risking missed steps or slowing down your business, DPDP Consultants offers a robust tool that automates Data Protection Impact Assessments.

Data Protection Officers (DPOs) or those responsible can use this user-friendly platform to analyse and mitigate personal data risks. It tracks threats and ensures everyone understands the measures being taken. This efficient automation helps you comply with the Digital Personal Data Protection Act 2023 and keep personal data secure.

DPDP Consultants provide customised solutions to help your organisation achieve and maintain compliance with the DPDP Act, 2023. Along with DPIAs, they offer various services and tools to navigate the new regulations effectively:

• The DPDPA Readiness Review helps organisations understand the impact of the DPDP Act on their operations.
• Our Contract Review service ensures that existing contracts meet DPDP specifications and suggests revisions if needed.
• Our dedicated team provides comprehensive DPDPA Compliance Assistance, establishing internal audit frameworks for regulatory alignment.
• The Data Protection Consent Management (DPCM) tool, ensures valid consent, automating personal data consent requests and establishing a robust system for tracking and handling such requests within companies.
• The Data Principal Grievance Redressal (DPGR) tool enables data principals to exercise all their rights through a user-friendly platform, reducing response time and ensuring compliance.
• Our Data Protection Awareness Program (DPAP) educates staff on the new privacy law through regular awareness sessions and assessments.

·        Looking for expert advice from top consultants?

·        Whether you need guidance on legal compliance consulting or tool-based technical solutions, DPDP Consultants can help you with the best professional services in the industry. Get tailored insights and practical solutions to help you succeed.

·        For News updates, expert insights, and practical tips on DPDP compliance and personal data security please subscribe to our newsletter Privacy Talks.