Compliance & Audit Services

Privacy Impact Assessment (DPIA)

  • May 8, 2025
  • 0

Sherlocked Security – Privacy Impact Assessment (DPIA)

Systematic Evaluation of Data Privacy Risks and Mitigation Strategies in Line with GDPR, CCPA, and Global Data Privacy Laws

1. Statement of Work (SOW)

Service Name: Data Protection Impact Assessment (DPIA)
Client Type: Organizations processing personal data at scale, including technology companies, healthcare, financial institutions, education, and public sector entities
Service Model: Privacy Risk Identification + Legal Compliance Evaluation + Mitigation Planning
Compliance Coverage: GDPR (Article 35), CCPA, UK GDPR, LGPD, and relevant global privacy frameworks

Assessment Types:

  • High-Risk Processing Evaluation
  • Data Subject Rights Impact Analysis
  • Data Lifecycle Mapping (Collection, Use, Retention, Disposal)
  • Legal Basis and Consent Mechanism Review
  • Technical and Organizational Safeguards Assessment
  • Third-Party Data Sharing & Processor Controls Review

2. Our Approach

[Scope Identification] → [Data Mapping] → [Risk Identification] → [Legal Basis Assessment] → [Mitigation Planning] → [Stakeholder Engagement] → [Final DPIA Documentation]

3. Methodology

[Data Inventory & Flow Mapping] → [Purpose & Lawfulness Analysis] → [Data Subject Impact Evaluation] → [Risk & Control Assessment] → [Processor & Vendor Assessment] → [Mitigation Strategy Definition] → [Compliance Reporting]

4. Deliverables to the Client

  1. Comprehensive DPIA Report
  2. Personal Data Inventory & Data Flow Maps
  3. Risk Matrix with Likelihood and Impact Scores
  4. Legal Basis and Consent Review Summary
  5. Technical & Organizational Control Evaluation Report
  6. Third-Party Risk Summary (Data Processors, Sub-Processors)
  7. Mitigation Recommendations and Compliance Action Plan
  8. Documentation Package for Regulatory Inspection

5. What We Need from You (Client Requirements)

  • Full data inventory (systems, datasets, databases handling personal data)
  • List of data subjects and data categories (e.g., health, financial, biometrics)
  • Existing policies on consent, data subject rights, retention, breach handling
  • Access to relevant IT systems, APIs, and data flow diagrams
  • Vendor and sub-processor list with contracts or DPAs
  • Historical breach data, privacy incidents, or audits
  • Scope confirmation for DPIA (new projects, existing processing, AI models, etc.)

6. Tools & Technology Stack

  • Data Mapping & Discovery: OneTrust, BigID, Collibra
  • Risk & Impact Scoring: TrustArc, RiskWatch
  • Privacy Management Platforms: OneTrust, TrustArc, DataGrail
  • DLP & Encryption: Symantec DLP, Microsoft Purview, Varonis
  • Consent & Preference Management: Cookiebot, Sourcepoint, Osano
  • Vendor Risk Tools: SecurityScorecard, RiskRecon, BitSight

7. Engagement Lifecycle

1. Kickoff & Documentation Review → 2. Data Flow Mapping → 3. Risk & Legal Basis Analysis → 4. Control Effectiveness Assessment → 5. Vendor DPIA Integration → 6. Final Report & Risk Register → 7. Remediation and Monitoring Strategy

8. Why Sherlocked Security?

Feature Sherlocked Advantage
Regulatory Expertise Deep knowledge of GDPR, CCPA, and global data protection regulations
Cross-Functional DPIA Capability Legal, technical, and business perspectives integrated in assessment
Data Mapping & Classification Advanced tools to identify, classify, and track personal data
Actionable Risk Mitigation Clear risk prioritization and practical recommendations
Audit-Ready Documentation DPIA reports aligned with regulatory expectations (e.g., EDPB, ICO)

9. Real-World Case Studies

AI-Based Customer Profiling System

Issue: Automated decision-making engine lacked transparency and proper legal basis
Impact: High risk to data subjects’ rights under GDPR Article 22
Fix: Implemented explicit consent, explainability model, and right-to-object handling

Health App with Location Tracking

Issue: Location and biometric data processed without explicit user consent
Impact: Violation of GDPR Articles 6 and 9
Fix: Introduced granular consent options and updated DPA with location data processor

10. SOP – Standard Operating Procedure

  1. Scope & Threshold Determination

    • Identify processing activities requiring DPIA (automated decisions, sensitive data, large-scale surveillance, etc.)

  2. Data Mapping & Inventory

    • Catalog data sources, categories, retention policies, flow across internal and external entities

  3. Purpose & Legal Basis Analysis

    • Assess whether data use aligns with lawful grounds (e.g., consent, contract, legitimate interest)

  4. Risk Identification & Impact Analysis

    • Evaluate risks to data subjects (re-identification, data breach, unauthorized profiling)

  5. Controls Assessment

    • Review existing technical (encryption, access control) and organizational (policies, audits) measures

  6. Third-Party/Vendor Review

    • Validate data protection agreements and assess adequacy of vendor safeguards

  7. Mitigation & Residual Risk Assessment

    • Propose safeguards to reduce high risks; assess if residual risk is acceptable

  8. Stakeholder Consultation

    • Engage legal, technical, and business stakeholders (plus DPO where required)

  9. Final DPIA Documentation

    • Prepare and store DPIA for accountability, audit, and regulatory review

11. DPIA Assessment Checklist

1. Threshold & Scope Assessment

  • Determine if the processing is likely to result in high risk to individuals’ rights and freedoms.
  • Assess if special categories of personal data (health, biometric, racial, political opinions, etc.) are being processed.
  • Evaluate whether large-scale monitoring, profiling, or automated decision-making is involved.
  • Confirm if cross-border data transfers are part of the processing.

2. Data Inventory and Flow Mapping

  • Map all sources, systems, and processes handling personal data.
  • Identify the categories of personal data and data subjects involved.
  • Document how data is collected, used, shared, stored, and disposed of.
  • Ensure international data transfers (e.g., EU-US) are properly assessed and documented.

3. Purpose & Lawfulness

  • Verify that the purpose of data collection is specific, explicit, and legitimate.
  • Confirm the lawful basis for processing (consent, contract, legal obligation, vital interest, public task, legitimate interest).
  • Ensure purpose limitation and data minimization principles are applied.
  • Evaluate how consent is obtained, recorded, and managed where applicable.

4. Risk Identification & Impact Analysis

  • Identify potential risks to the rights and freedoms of data subjects (e.g., financial loss, identity theft, reputational harm).
  • Evaluate the likelihood and severity of risks based on processing context and data sensitivity.
  • Analyze the impact of risks using a defined risk scoring or matrix system.
  • Review historical privacy incidents or near misses for similar processing types.

5. Technical & Organizational Measures

  • Assess implementation of encryption, anonymization, or pseudonymization techniques.
  • Review access controls, authentication, audit logs, and user activity monitoring.
  • Confirm physical security controls for devices and storage facilities.
  • Validate data retention schedules and secure disposal mechanisms.

6. Processor and Vendor Risk

  • Review Data Processing Agreements (DPAs) with all vendors and service providers.
  • Verify if subprocessors and international transfers are adequately covered under contractual and legal safeguards.
  • Evaluate vendor security practices through assessments, certifications (e.g., ISO 27001), or audit results.
  • Ensure that vendors have appropriate breach response procedures aligned with your policies.

7. Data Subject Rights

  • Confirm that individuals can exercise rights of access, rectification, erasure, and data portability.
  • Ensure there is a process to handle objections to processing and withdrawal of consent.
  • Assess how automated decision-making and profiling are explained and how individuals can opt out.
  • Review privacy notices and communication mechanisms for transparency.

8. Residual Risk Evaluation & Mitigation

  • Document residual risks that remain after existing controls are in place.
  • Evaluate whether any high risks require further mitigation before proceeding.
  • Develop an action plan with additional safeguards, if required.
  • Consult with the Data Protection Officer (DPO) or legal team when high-risk processing is involved.

9. DPIA Approval & Review

  • Obtain internal approval of the DPIA from relevant stakeholders.
  • Maintain records of DPIA outcomes and decisions for accountability.
  • Schedule regular reviews or reassessments based on changes in processing, technology, or risk landscape.
  • Ensure DPIA documentation is accessible for regulatory inspections if requested.
PCI DSS Assessment
NIST 800-53 - CSF Assessment