DPIA & GDPR
As further protection for consumers, the GDPR also calls for any personally identifiable information (PII) that sites collect to be either anonymized (rendered anonymous, as the term implies) or pseudonymized (with the consumer’s identity replaced with a pseudonym). The pseudonymization of data allows firms to do some more extensive data analysis, such as assessing average debt ratios of its customers in a particular region—a calculation that might otherwise be beyond the original purposes of data collected for assessing creditworthiness for a loan.
The GDPR affects data beyond that collected from customers. Most notably, perhaps, the regulation applies to the human resources’ records of employees. A data protection impact assessment (DPIA) is a privacy-related impact assessment whose objective is to identify and analyze how data privacy might be affected by certain actions or activities. Under the GDPR, data protection impact assessments are mandatory in certain cases, such as when profiling activities are carried out using personal data.
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