Final answer:
The principle of Data Minimization is being demonstrated as the database administrator is instructed to limit PII storage, which aligns with maintaining PII security by reducing potential vulnerabilities.
Step-by-step explanation:
The principle being demonstrated by a database administrator who is instructed by a manager to reduce the number of unique instances of Personally Identifiable Information (PII) stored within an organization's systems is known as Data Minimization. Data Minimization is a key privacy principle that emphasizes that data collection and storage should be limited to what is directly relevant and necessary to accomplish a specified purpose. In essence, only the minimal amount of data required for a task should be kept, and any non-essential information should not be stored, thereby reducing the risk of data breaches and enhancing the PII security.
Recent large-scale data breaches have heightened the awareness and necessity of adhering to privacy principles to protect individuals' data from unauthorized access. Incorrect handling or excessive collection of PII can lead to increased vulnerabilities. By employing data minimization, organizations not only comply with privacy laws, such as the EU's General Data Protection Regulation (GDPR), but also aim to prevent potential data misuse and improve overall PII security.