Certified Information Privacy Manager (CIPM) 2025 – 400 Free Practice Questions to Pass the Exam

A Data Protection Impact Assessment (DPIA) is a crucial tool that organizations use to evaluate the potential impact of their data processing activities on the privacy of individuals. It helps to identify and assess potential privacy risks associated with specific projects or initiatives where personal data is processed.

By conducting a DPIA, organizations can systematically analyze how a particular data processing activity might affect the privacy of individuals, assess risks, and take necessary measures to mitigate those risks. This process is particularly important when implementing new technologies or processing personal data in ways that might present higher risks to individual privacy rights.

This focus on identifying privacy risks is aligned with regulatory requirements, like the General Data Protection Regulation (GDPR) in Europe, which mandates that certain types of data processing undergo a DPIA to ensure that privacy risks are proactively managed.

The other options presented do not align with the primary objective of a DPIA. For example, identifying marketing opportunities or investment strategies relates more to business development and financial considerations, without a direct connection to privacy and data protection. Similarly, employee performance metrics are measures of workforce effectiveness and are unrelated to the assessment of data processing activities and their impact on privacy.