Final answer:
A Privacy Impact Assessment (PIA) is required for organizations collecting personally identifiable information (PII) that could result in a high risk to individuals' privacy.
Step-by-step explanation:
A Privacy Impact Assessment (PIA) is required for an organization collecting personally identifiable information (PII) when it involves the processing of personal data that could result in a high risk to individuals' privacy. The purpose of a PIA is to assess and mitigate the privacy risks associated with the collection, use, retention, and disclosure of PII. It helps organizations identify potential privacy gaps and implement appropriate measures to ensure compliance with privacy laws and regulations.
For example, if an organization is collecting PII such as social security numbers, financial information, health records, or other sensitive personal data, a PIA would likely be required to evaluate how that data is being protected and used, and to identify any potential privacy risks or vulnerabilities.
It is important for organizations to conduct PIAs to demonstrate their commitment to privacy protection and to ensure they are meeting legal obligations. Conducting a PIA helps organizations identify and address privacy risks before they become a problem, enhancing trust and confidence among individuals whose data is being collected.