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Source: Privacy Commissioner

A privacy impact assessment (PIA) is an essential part of many projects and proposals, and can be used to help agencies identify the potential risks arising from their collection, use or handling of personal information, to find out if they are meeting their legal obligations. PIA focuses on identifying the ways a new proposal or operating system, or changes to an existing process may affect personal privacy, to help organisations make more informed decisions and better manage privacy risks. It is important to decide whether to do a PIA early in a proposal’s life. If you fail to identify how your project is likely to affect the individuals whose information you are collecting and using, there are real risks for your organisation and for the success of your project.

MIL OSI