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At its core, running any business is about managing risk. And the growing number of privacy regulations – globally and domestically – adds a complex new layer of risk for organizations, particularly for organizations operating with highly sensitive consumer data, such as pharmaceutical and health-related companies.

One tool for managing risk is the Privacy Impact Assessment (PIA), a structured framework to evaluate a project, program or system, and identify and assess the potential privacy risks and impacts associated with it. Because one of the primary objectives of a PIA is to ensure privacy is integrated into the planning and implementation of any initiative involving personal data, it enables organizations to proactively address privacy concerns and minimize risks before they can occur.

For example, a company developing a mobile app that collects user location information may use a PIA to assess the risks associated with this data collection. Through the assessment, the organization may identify concerns related to unauthorized access, data intrusions, or the potential for location tracking without user consent. With these risks identified, the organization can implement privacy-enhancing measures such as encryption, robust access controls, and clear consent mechanisms to address these risks.

While the number of privacy laws continues to grow, there is no single standard for organizations to meet. Specific requirements for conducting PIAs can vary between jurisdictions. Further creating risk, some laws specify when a PIA is mandatory, while others leave it to the discretion of the organization to determine when it is necessary.
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PIAs as a Smart Business Practice

Whether or not required by law, a PIA can serve as a smart practice to manage potential risk associated with data collection and use, and safeguard the privacy rights of individuals. In addition to risk management, PIAs offer several other benefits:

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Competitive advantage

Organizations that demonstrate a commitment to privacy and data protection may enjoy a competitive advantage. Recent surveys show that more than three-fourths of consumers say they won’t do business with companies whose data practices they don’t trust. In the pharmaceutical and healthcare sectors, companies that prioritize privacy can use it as a selling point with patients, providers and research partners. PIAs can help these companies by proactively assessing and addressing privacy risks, protecting an organization’s brand and reputation.

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Data security

Conducting a PIA helps identify vulnerabilities in data handling and storage processes, which can inform stronger data security practices and reduce the risk of data breaches or other data incidents. If an organization experiences a privacy incident, a well-documented PIA can be valuable evidence that the organization took reasonable steps to protect personal data, mitigating potential legal liabilities and regulatory penalties.

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Cost savings

By identifying and addressing privacy risks early in the development or implementation of new products or services, organizations can save money often required to remediate privacy issues after a product or service has been launched. In addition, an organization that conducts PIAs can mitigate the risk of non-compliance, avoiding regulatory penalties.

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Managing Risk and Compliance Through PlAs

As privacy laws grow and consumers become more aware of privacy practices, Privacy Impact Assessments are a critical tool for organizations to ensure compliance with regulations and build trust with key stakeholders. PIAs help identify and mitigate privacy risks, demonstrate transparency and accountability, and contribute to a culture of privacy within an organization.

Relyance AI’s Privacy Impact Assessments module enables privacy professionals to proactively assess and manage risk for all current and future vendors and products. Relyance AI provides out-of-the-box templates that comply with requirements across jurisdictions, along with the capability to create templates to meet an organization’s needs. PIAs then can be managed in a single view with enhanced collaboration and automation tools that continuously identify high-risk data processing. With Relyance AI’s unique and powerful Privacy Co-Pilot, the data privacy management platform automates as much as 85 percent of an organization’s assessments. And notifications are automatically generated when assessments need to be completed or reviewed due to any changes in an organization’s environment.

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To learn more about the Relyance Al platform, book a demo here.

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