In an increasingly data-driven world, businesses in India are faced with the responsibility of managing and protecting vast amounts of sensitive information.
As data breaches and privacy concerns become more prevalent, it is imperative for organisations to prioritise the implementation of robust data protection measures. One such essential tool is the Data Processing Impact Assessment (DPIA). This article explores the significance of conducting DPIA and the relevant laws governing data protection in India.
WHAT IS DPIA?
DPIA is a systematic process that enables businesses to identify, assess, and mitigate the risks associated with the processing of personal data. It serves as a crucial tool for organisations to ensure compliance with data protection regulations and safeguard the
privacy rights of individuals.
In accordance with both the UK Data Protection Act, 2019 and the European Union’s General Data Protection Regulation (GDPR), organisations are legally obliged to carry out a DPIA before undertaking certain data processing activities. Further, according to the European Commission’s Guidelines on Data Protection Impact Assessment (DPIA) (wp248rev.01), only those organisations that pose a high risk to the rights and freedoms of natural persons are mandated to conduct DPIA.
WHY CONDUCT DPIA?
Compliance with the law: India’s Digital Personal Data Protection Act, 2023 (Act) draws inspiration from the GDPR and goes beyond it to strengthen the protection of sensitive personal data. For instance, under Section 10(2)(i) of the Act, a Significant Data Fiduciary (SDF(s)) is mandated to conduct DPIA and periodic audits according to the Act to ensure data accountability and transparency.
Building Trust: In a data-driven landscape where consumers are increasingly concerned about the handling of their personal information, DPI demonstrates an organisation’s commitment to protecting individuals’ privacy. This commitment enhances customer trust and confidence, leading to improved customer retention and attracting new customers who prioritise privacy-conscious organisations.
Risk Identification and Mitigation: DPIA helps businesses identify and assess potential risks associated with their data processing activities. It allows organisations to evaluate the impact of processing personal data on individuals’ rights, freedoms, and legitimate interests. By conducting a comprehensive assessment, businesses can implement necessary safeguards and mitigate potential risks, such as data breaches, unauthorised access, or misuse of personal information.
HOW TO CONDUCT A DPIA?
The DPIA process is a flexible procedure and an organisation can design a process that is tailored to their requirements. The DPIA process should begin at the start of the project and should run alongside the planning and development process, here are the steps to be followed for conducting the process:
- Assessment and Evaluation: Like the GDPR, the Act mandates only SDFs to conduct DPIA.
- Data Mapping: Organisations are to identify and document the personal data being processed, its sources, recipients, storage locations, and any transfers involved.
- Risk Assessment: Evaluate the potential risks and impacts on individuals’ rights and freedoms. Consider factors like data security, potential harm, and the likelihood of occurrence.
- Privacy Safeguards: Assess the adequacy of existing security measures and privacy safeguards. Implement additional measures if necessary to mitigate identified risks.
- Consultation: According to Article 35(2) of the GDPR, authorised Data Controllers (persons responsible to process data) have an obligation to consider the opinions of Data Subjects (persons whose data is being processed or their representatives regarding data processing.
- Consultation: According to Article 35(2) of the GDPR, authorised Data Controllers (persons responsible to process data) have an obligation to consider the opinions of Data Subjects (persons whose data is being processed) or their representatives regarding data processing. However, it is at the discretion of the Data Controller whether to exercise this option or not.
- Documentation: Document the DPIA process, including its outcomes, measures implemented, and any additional actions required. Further, the report should meticulously document every stage of the DPIA process, encompassing identified risks, potential residual risks, and the measures taken to mitigate these risks. Additionally, the report should provide reasons for the decisions made during the DPIA.
- Review and Update: Regularly review and update the DPIA to address emerging risks or changes in data processing activities.
- Communication: Clearly communicate the DPIA findings and measures taken to relevant stakeholders, ensuring transparency and accountability.
The process of conducting a DPIA is not a one-time process it has to be revisited whenever any of its circumstances change, updating it accordingly.
CONCLUSION
DPIA is essential for businesses in India as it ensures compliance with data protection laws, helps identify and mitigate risks, enhances transparency and accountability, and builds trust and reputation. By proactively conducting DPIA, organisations can effectively protect personal data, safeguard privacy rights, and establish themselves as responsible custodians of information in the digital age.
Corrida Legal is the preferred corporate law firm in Gurgaon (Delhi NCR) and Mumbai. Reach out to us on LinkedIn or contact us at contact@corridalegal.com in case you require any advice or legal assistance. Go to our Data Privacy and Protection page for similar articles.