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

DPIA stands for Data Protection Impact Assessment. Its primary purpose is to systematically assess the impact of processing operations on the privacy rights of individuals, referred to as data subjects. Conducting a DPIA helps organizations identify and mitigate potential risks associated with data processing activities before they occur, fostering accountability and compliance with data protection laws, such as the General Data Protection Regulation (GDPR). This proactive approach is essential for ensuring that any detrimental effects on privacy are addressed and minimized.

In contrast, other options misrepresent the meaning or purpose of a DPIA. For instance, the first option incorrectly defines DPIA as Data Privacy Impact Analysis and limits its scope to financial impacts, overlooking the broader privacy focus. The third option suggests it is an audit for adherence to policies, which is a different concept entirely and does not entail evaluating impacts on individuals’ privacy. Finally, the last option refers to analyzing data breaches rather than assessing the impacts of data processing from the outset, which misses the proactive nature of a DPIA. Thus, the correct understanding centers on assessing the potential implications for data subjects, which is accurately captured in the second option.