A Privacy Impact Assessment (PIA) is a formal review process where you identify risks to people's data before starting a new project or system. This is legally required under GDPR when processing poses high risks (like using AI to make decisions about people, or collecting health data). The clause typically requires one party to conduct a PIA and share results with the other party. This matters because it forces you to think through data risks early, rather than discovering problems after a breach or complaint. A good PIA can prevent costly mistakes and regulatory action.
Agree to conduct a PIA, but define clearly who pays for it and who owns the results—you don't want to pay for assessments that benefit the other party. Request that the PIA be completed before data processing starts, not after. If the assessment identifies risks, negotiate who bears the cost of fixing them (for example, implementing encryption or limiting data collection). ---
Frequently Asked Questions
What does this clause mean in simple terms?
A Privacy Impact Assessment (PIA) is a formal review process where you identify risks to people's data before starting a new project or system.
Why should I care about this clause?
This is legally required under GDPR when processing poses high risks (like using AI to make decisions about people, or collecting health data).
What are my options?
The clause typically requires one party to conduct a PIA and share results with the other party.
How does this affect small businesses?
This matters because it forces you to think through data risks early, rather than discovering problems after a breach or complaint.