DPIA (Data Protection Impact Assessment)

A Data Protection Impact Assessment (DPIA) is a structured analysis required by GDPR when processing is likely to result in a high risk to data subjects. Situations that typically trigger a DPIA include systematic and extensive profiling with significant effects, large-scale processing of special categories of data, and systematic monitoring of publicly accessible areas.

The DPIA must contain a systematic description of the processing operations and their purposes, an assessment of the necessity and proportionality of the processing, an assessment of the risks to data subjects' rights and freedoms, and the measures envisaged to address those risks. If the DPIA indicates that high risks cannot be mitigated, the organization must consult with the supervisory authority before proceeding.

For financial institutions, DPIAs are particularly relevant when implementing new technologies for customer data processing, deploying AI-based decision-making systems, or establishing cross-border data transfers. The DPIA process complements DORA's risk management requirements by specifically addressing data protection dimensions of ICT projects.