Risk Assessment

A systematic process of identifying, analyzing, and evaluating privacy and data protection risks associated with data processing activities. Risk assessment examines likelihood and severity of risks to individuals' rights and freedoms from processing personal data, considering factors like data sensitivity, processing scale, innovative technologies, data subject vulnerability, and potential harms. The process typically involves: identifying processing activities, determining risk sources (unauthorized access, loss, misuse), assessing risk likelihood and impact, evaluating existing controls, identifying gaps, and recommending additional measures. Under GDPR Article 35, high-risk processing requires formal Data Protection Impact Assessments. Risk-based approaches recognize that not all processing poses equal risks—a small business storing basic customer contacts needs different controls than a healthcare provider processing genetic data. Organizations should document risk assessments, review them regularly as processing evolves, and use findings to inform security measures, privacy policies, and compliance decisions. Effective risk assessment balances privacy protection with operational practicality.