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Conducting a Privacy Audit

By Michael L. Whitener

A glance at the headlines reveals that data privacy breaches are increasingly common, and the consequences to corporations ' in terms of reputational damage, potential liability and costs to remedy ' are increasingly dire. To avoid those consequences, any corporate entity that collects, uses or transfers personal information must take steps to ensure it is complying with legal requirements for maintaining data privacy and ' equally important ' living up to the trust of its employees, customers, partners and suppliers. A privacy audit provides a means of benchmarking corporate privacy practices against what the law requires and what industry best practices demand.

So what exactly does a privacy audit entail? As explained below, it need not be a daunting or expensive undertaking. With the proper tools, support from corporate management, a motivated audit team and a few guidelines, a privacy audit can be conducted using primarily internal resources and with little or no business disruption. If properly carried out, a privacy audit will result in a clear understanding of an organization's personal data flows and a comprehensive information security/privacy program that will protect personal data from unlawful collection, handling and disclosure.

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