Financial services — Privacy impact assessment

ISO 22307:2008 recognizes that a privacy impact assessment (PIA) is an important financial services and banking management tool to be used within an organization, or by “contracted” third parties, to identify and mitigate privacy issues and risks associated with processing consumer data using automated, networked information systems. ISO 22307:2008 describes the privacy impact assessment activity in general, defines the common and required components of a privacy impact assessment, regardless of business systems affecting financial institutions, and provides informative guidance to educate the reader on privacy impact assessments. A privacy compliance audit differs from a privacy impact assessment in that the compliance audit determines an institution's current level of compliance with the law and identifies steps to avoid future non-compliance with the law. While there are similarities between privacy impact assessments and privacy compliance audits in that they use some of the same skills and that they are tools used to avoid breaches of privacy, the primary concern of a compliance audit is simply to meet the requirements of the law, whereas a privacy impact assessment is intended to investigate further in order to identify ways to safeguard privacy optimally. ISO 22307:2008 recognizes that the choices of financial and banking system development and risk management procedures are business decisions and, as such, the business decision makers need to be informed in order to be able to make informed decisions for their financial institutions. ISO 22307:2008 provides a privacy impact assessment structure (common PIA components, definitions and informative annexes) for institutions handling financial information that wish to use a privacy impact assessment as a tool to plan for, and manage, privacy issues within business systems that they consider to be vulnerable.

Services financiers — Évaluation de l'impact privé

General Information

Status
Published
Publication Date
15-Apr-2008
Current Stage
9093 - International Standard confirmed
Completion Date
11-Sep-2024
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INTERNATIONAL ISO
STANDARD 22307
First edition
2008-05-01
Financial services — Privacy impact
assessment
Services financiers — Évaluation de l'impact privé

Reference number
©
ISO 2008
PDF disclaimer
This PDF file may contain embedded typefaces. In accordance with Adobe's licensing policy, this file may be printed or viewed but
shall not be edited unless the typefaces which are embedded are licensed to and installed on the computer performing the editing. In
downloading this file, parties accept therein the responsibility of not infringing Adobe's licensing policy. The ISO Central Secretariat
accepts no liability in this area.
Adobe is a trademark of Adobe Systems Incorporated.
Details of the software products used to create this PDF file can be found in the General Info relative to the file; the PDF-creation
parameters were optimized for printing. Every care has been taken to ensure that the file is suitable for use by ISO member bodies. In
the unlikely event that a problem relating to it is found, please inform the Central Secretariat at the address given below.

©  ISO 2008
All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized in any form or by any means,
electronic or mechanical, including photocopying and microfilm, without permission in writing from either ISO at the address below or
ISO's member body in the country of the requester.
ISO copyright office
Case postale 56 • CH-1211 Geneva 20
Tel. + 41 22 749 01 11
Fax + 41 22 749 09 47
E-mail copyright@iso.org
Web www.iso.org
Published in Switzerland
ii © ISO 2008 – All rights reserved

Contents Page
Foreword. iv
Introduction . v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions. 1
4 Abbreviated terms . 2
5 PIA requirements . 3
5.1 Overview of PIA requirements. 3
5.2 General PIA process requirements. 3
5.3 Specific PIA process requirements . 3
Annex A (informative) Frequently asked questions related to PIA . 8
Annex B (informative) General questionnaire to determine when to begin a PIA. 16
Annex C (informative) Questionnaire for PIA objectives . 17
Annex D (informative) Questionnaire on PIA initial procedures . 18
Annex E (informative) Questionnaire on adequacy of internal controls and procedures . 19
Annex F (informative) PIA questionnaire for assessing privacy impacts for retail financial
systems. 20
Bibliography . 28

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies
(ISO member bodies). The work of preparing International Standards is normally carried out through ISO
technical committees. Each member body interested in a subject for which a technical committee has been
established has the right to be represented on that committee. International organizations, governmental and
non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the
International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.
International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.
The main task of technical committees is to prepare International Standards. Draft International Standards
adopted by the technical committees are circulated to the member bodies for voting. Publication as an
International Standard requires approval by at least 75 % of the member bodies casting a vote.
Attention is drawn to the possibility that some of the elements of this document may be the subject of patent
rights. ISO shall not be held responsible for identifying any or all such patent rights.
ISO 22307 was prepared by Technical Committee ISO/TC 68, Financial services, Subcommittee SC 7, Core
banking.
iv © ISO 2008 – All rights reserved

Introduction
Rapid advances in computer systems and networking allow financial institutions to record, store, and retrieve
vast amounts of consumer data with more speed and efficiency than ever before. These advances enable
financial services companies to acquire and process consumer data in ways that were previously out of reach
to many due to the cost or to the specialized knowledge and training necessary to build and use these
technologies. Advanced data processing, storage, collection, and retrieval technology is now available to all
sectors of business and government.
Businesses have access to extremely powerful technology with significantly better price and performance than
in the past. With these new abilities, businesses can effortlessly process information in ways that, intentionally
or unintentionally, impinge on the privacy rights of their customers and partners. These capabilities raise
concerns about the privacy of individuals in these large networked information technology environments.
Furthermore, regulated industries such as financial services, law, and policy now place additional conditions
on how personal information is collected, stored, shared and used.
The financial services community recognizes how important it is to protect and not abuse their customers’
privacy, not just because it is required by law, but also because as systems are developed or updated, there is
an opportunity to enhance business processes and to provide improved services to customers.
Ensuring compliance with the Organization for Economic Cooperation and Development (OECD) privacy
principles means that an institution’s privacy policies are consistent with established privacy principles such as
having an external body establish a set of rules, guidelines or prohibitions. The presence of an external body
can encourage corporations to protect financial information, either simply to comply with the letter of the law,
or to enhance their privacy protection in general. New ways of using existing technology and new technologies
bring new or unknown risks. It is advisable that corporations handling financial information be proactive in
protecting and not abusing the privacy of their consumers and partners.
One way of proactively addressing privacy principles and practices is to follow a standardized privacy impact
assessment process for a proposed financial system (PFS), such as the one recommended in this
International Standard. A privacy impact assessment (PIA) is a tool that, when used effectively, can identify
risks associated with privacy and help organizations plan to mitigate those risks. Recognizing that the
framework for privacy protection in each country is different, the internationalization of privacy impact
assessments is critical for global banking, in particular for cross-border financial transactions.

INTERNATIONAL STANDARD ISO 22307:2008(E)

Financial services — Privacy impact assessment
1 Scope
This International Standard recognizes that a privacy impact assessment (PIA) is an important financial
services and banking management tool to be used within an organization, or by “contracted” third parties, to
identify and mitigate privacy issues and risks associated with processing consumer data using automated,
networked information systems. This International Standard
⎯ describes the privacy impact assessment activity in general,
⎯ defines the common and required components of a privacy impact assessment, regardless of business
systems affecting financial institutions, and
⎯ provides informative guidance to educate the reader on privacy impact assessments.
A privacy compliance audit differs from a privacy impact assessment in that the compliance audit determines
an institution’s current level of compliance with the law and identifies steps to avoid future non-compliance
with the law. While there are similarities between privacy impact assessments and privacy compliance audits
in that they use some of the same skills and that they are tools used to avoid breaches of privacy, the primary
concern of a compliance audit is simply to meet the requirements of the law, whereas a privacy impact
assessment is intended to investigate further in order to identify ways to safeguard privacy optimally.
This International Standard recognizes that the choices of financial and banking system development and risk
management procedures are business decisions and, as such, the business decision makers need to be
informed in order to be able to make informed decisions for their financial institutions. This International
Standard provides a privacy impact assessment structure (common PIA components, definitions and
informative annexes) for institutions handling financial information that wish to use a privacy impact
assessment as a tool to plan for, and manage, privacy issues within business systems that they consider to be
vulnerable.
2 Normative references
The following referenced documents are indispensable for the application of this document. For dated
references, only the edition cited applies. For undated references, the latest edition of the referenced
document (including any amendments) applies.
OECD Guidelines on the protection of privacy and transborder flows of personal data, 1980
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
3.1
financial activities
activities including
⎯ lending, exchanging, transferring, investing for others, or safeguarding money or securities,
⎯ insuring, guaranteeing or indemnifying against loss, harm, damage, illness, disability or death,
⎯ providing financial investment or economic advisory services,
⎯ underwriting or dealing with securities
3.2
financial system
all services, facilities, business processes and data flows used by financial institutions to implement and
perform financial activities
3.3
proposed financial system
all of the components of a financial system assessed in a privacy impact assessment
3.4
business process
process with clearly defined deliverable or outcome, which entails the execution of a sequence of one or more
process steps
NOTE A business process is defined by the business event that triggers the process, the inputs and outputs, all the
operational steps required to produce the output, the sequential relationship between the process steps, the business
decisions that are part of the event response, and the flow of material and/or information between process steps.
3.5
data model
representation of the specific information requirements of a business area
3.6
information access model
model that depicts access to key process and organization information for reporting and/or security purposes
NOTE An information flow model is a model that visually depicts information flows in the business between business
functions, business organizations, and applications.
3.7
preliminary privacy impact assessment
assessment conducted when the proposed financial system is at the early conception or design phase and
detailed information is not known
NOTE A preliminary privacy impact assessment can be planned for a proposed financial system in defining the need
and/or scope of a full privacy impact assessment for a proposed financial system.
4 Abbreviated terms
CPO Chief Privacy Officer
NPI Non-public Personal Information
OECD Organization for Economic Cooperation and Development
PIA Privacy Impact Assessment
PII Personally Identifiable Information
PFS Proposed Financial System
2 © ISO 2008 – All rights reserved

5 PIA requirements
5.1 Overview of PIA requirements
The objectives of a PIA include:
⎯ ensuring that privacy protection is a core consideration in the initial considerations of a PFS and in all
subsequent activities during the system development life cycle;
⎯ ensuring that accountability for privacy issues is clearly incorporated into the responsibilities of respective
system developers, administrators and any other participants, including those from other institutions,
jurisdictions and sectors;
⎯ providing decision-makers with the information necessary to make fully-informed policy, system design
and procurement decisions for proposed financial systems based on an understanding of the privacy
implications and risks and the options available for avoiding and/or mitigating those risks;
⎯ reducing the risk of having to terminate or substantially modify a financial service after its implementation
to comply with privacy requirements;
⎯ providing documentation on the business processes and
...


INTERNATIONAL ISO
STANDARD 22307
First edition
2008-05-01
Financial services — Privacy impact
assessment
Services financiers — Évaluation de l'impact privé

Reference number
©
ISO 2008
PDF disclaimer
This PDF file may contain embedded typefaces. In accordance with Adobe's licensing policy, this file may be printed or viewed but
shall not be edited unless the typefaces which are embedded are licensed to and installed on the computer performing the editing. In
downloading this file, parties accept therein the responsibility of not infringing Adobe's licensing policy. The ISO Central Secretariat
accepts no liability in this area.
Adobe is a trademark of Adobe Systems Incorporated.
Details of the software products used to create this PDF file can be found in the General Info relative to the file; the PDF-creation
parameters were optimized for printing. Every care has been taken to ensure that the file is suitable for use by ISO member bodies. In
the unlikely event that a problem relating to it is found, please inform the Central Secretariat at the address given below.

©  ISO 2008
All rights reserved. Unless otherwise specified, no part of this publication may be reproduced or utilized in any form or by any means,
electronic or mechanical, including photocopying and microfilm, without permission in writing from either ISO at the address below or
ISO's member body in the country of the requester.
ISO copyright office
Case postale 56 • CH-1211 Geneva 20
Tel. + 41 22 749 01 11
Fax + 41 22 749 09 47
E-mail copyright@iso.org
Web www.iso.org
Published in Switzerland
ii © ISO 2008 – All rights reserved

Contents Page
Foreword. iv
Introduction . v
1 Scope . 1
2 Normative references . 1
3 Terms and definitions. 1
4 Abbreviated terms . 2
5 PIA requirements . 3
5.1 Overview of PIA requirements. 3
5.2 General PIA process requirements. 3
5.3 Specific PIA process requirements . 3
Annex A (informative) Frequently asked questions related to PIA . 8
Annex B (informative) General questionnaire to determine when to begin a PIA. 16
Annex C (informative) Questionnaire for PIA objectives . 17
Annex D (informative) Questionnaire on PIA initial procedures . 18
Annex E (informative) Questionnaire on adequacy of internal controls and procedures . 19
Annex F (informative) PIA questionnaire for assessing privacy impacts for retail financial
systems. 20
Bibliography . 28

Foreword
ISO (the International Organization for Standardization) is a worldwide federation of national standards bodies
(ISO member bodies). The work of preparing International Standards is normally carried out through ISO
technical committees. Each member body interested in a subject for which a technical committee has been
established has the right to be represented on that committee. International organizations, governmental and
non-governmental, in liaison with ISO, also take part in the work. ISO collaborates closely with the
International Electrotechnical Commission (IEC) on all matters of electrotechnical standardization.
International Standards are drafted in accordance with the rules given in the ISO/IEC Directives, Part 2.
The main task of technical committees is to prepare International Standards. Draft International Standards
adopted by the technical committees are circulated to the member bodies for voting. Publication as an
International Standard requires approval by at least 75 % of the member bodies casting a vote.
Attention is drawn to the possibility that some of the elements of this document may be the subject of patent
rights. ISO shall not be held responsible for identifying any or all such patent rights.
ISO 22307 was prepared by Technical Committee ISO/TC 68, Financial services, Subcommittee SC 7, Core
banking.
iv © ISO 2008 – All rights reserved

Introduction
Rapid advances in computer systems and networking allow financial institutions to record, store, and retrieve
vast amounts of consumer data with more speed and efficiency than ever before. These advances enable
financial services companies to acquire and process consumer data in ways that were previously out of reach
to many due to the cost or to the specialized knowledge and training necessary to build and use these
technologies. Advanced data processing, storage, collection, and retrieval technology is now available to all
sectors of business and government.
Businesses have access to extremely powerful technology with significantly better price and performance than
in the past. With these new abilities, businesses can effortlessly process information in ways that, intentionally
or unintentionally, impinge on the privacy rights of their customers and partners. These capabilities raise
concerns about the privacy of individuals in these large networked information technology environments.
Furthermore, regulated industries such as financial services, law, and policy now place additional conditions
on how personal information is collected, stored, shared and used.
The financial services community recognizes how important it is to protect and not abuse their customers’
privacy, not just because it is required by law, but also because as systems are developed or updated, there is
an opportunity to enhance business processes and to provide improved services to customers.
Ensuring compliance with the Organization for Economic Cooperation and Development (OECD) privacy
principles means that an institution’s privacy policies are consistent with established privacy principles such as
having an external body establish a set of rules, guidelines or prohibitions. The presence of an external body
can encourage corporations to protect financial information, either simply to comply with the letter of the law,
or to enhance their privacy protection in general. New ways of using existing technology and new technologies
bring new or unknown risks. It is advisable that corporations handling financial information be proactive in
protecting and not abusing the privacy of their consumers and partners.
One way of proactively addressing privacy principles and practices is to follow a standardized privacy impact
assessment process for a proposed financial system (PFS), such as the one recommended in this
International Standard. A privacy impact assessment (PIA) is a tool that, when used effectively, can identify
risks associated with privacy and help organizations plan to mitigate those risks. Recognizing that the
framework for privacy protection in each country is different, the internationalization of privacy impact
assessments is critical for global banking, in particular for cross-border financial transactions.

INTERNATIONAL STANDARD ISO 22307:2008(E)

Financial services — Privacy impact assessment
1 Scope
This International Standard recognizes that a privacy impact assessment (PIA) is an important financial
services and banking management tool to be used within an organization, or by “contracted” third parties, to
identify and mitigate privacy issues and risks associated with processing consumer data using automated,
networked information systems. This International Standard
⎯ describes the privacy impact assessment activity in general,
⎯ defines the common and required components of a privacy impact assessment, regardless of business
systems affecting financial institutions, and
⎯ provides informative guidance to educate the reader on privacy impact assessments.
A privacy compliance audit differs from a privacy impact assessment in that the compliance audit determines
an institution’s current level of compliance with the law and identifies steps to avoid future non-compliance
with the law. While there are similarities between privacy impact assessments and privacy compliance audits
in that they use some of the same skills and that they are tools used to avoid breaches of privacy, the primary
concern of a compliance audit is simply to meet the requirements of the law, whereas a privacy impact
assessment is intended to investigate further in order to identify ways to safeguard privacy optimally.
This International Standard recognizes that the choices of financial and banking system development and risk
management procedures are business decisions and, as such, the business decision makers need to be
informed in order to be able to make informed decisions for their financial institutions. This International
Standard provides a privacy impact assessment structure (common PIA components, definitions and
informative annexes) for institutions handling financial information that wish to use a privacy impact
assessment as a tool to plan for, and manage, privacy issues within business systems that they consider to be
vulnerable.
2 Normative references
The following referenced documents are indispensable for the application of this document. For dated
references, only the edition cited applies. For undated references, the latest edition of the referenced
document (including any amendments) applies.
OECD Guidelines on the protection of privacy and transborder flows of personal data, 1980
3 Terms and definitions
For the purposes of this document, the following terms and definitions apply.
3.1
financial activities
activities including
⎯ lending, exchanging, transferring, investing for others, or safeguarding money or securities,
⎯ insuring, guaranteeing or indemnifying against loss, harm, damage, illness, disability or death,
⎯ providing financial investment or economic advisory services,
⎯ underwriting or dealing with securities
3.2
financial system
all services, facilities, business processes and data flows used by financial institutions to implement and
perform financial activities
3.3
proposed financial system
all of the components of a financial system assessed in a privacy impact assessment
3.4
business process
process with clearly defined deliverable or outcome, which entails the execution of a sequence of one or more
process steps
NOTE A business process is defined by the business event that triggers the process, the inputs and outputs, all the
operational steps required to produce the output, the sequential relationship between the process steps, the business
decisions that are part of the event response, and the flow of material and/or information between process steps.
3.5
data model
representation of the specific information requirements of a business area
3.6
information access model
model that depicts access to key process and organization information for reporting and/or security purposes
NOTE An information flow model is a model that visually depicts information flows in the business between business
functions, business organizations, and applications.
3.7
preliminary privacy impact assessment
assessment conducted when the proposed financial system is at the early conception or design phase and
detailed information is not known
NOTE A preliminary privacy impact assessment can be planned for a proposed financial system in defining the need
and/or scope of a full privacy impact assessment for a proposed financial system.
4 Abbreviated terms
CPO Chief Privacy Officer
NPI Non-public Personal Information
OECD Organization for Economic Cooperation and Development
PIA Privacy Impact Assessment
PII Personally Identifiable Information
PFS Proposed Financial System
2 © ISO 2008 – All rights reserved

5 PIA requirements
5.1 Overview of PIA requirements
The objectives of a PIA include:
⎯ ensuring that privacy protection is a core consideration in the initial considerations of a PFS and in all
subsequent activities during the system development life cycle;
⎯ ensuring that accountability for privacy issues is clearly incorporated into the responsibilities of respective
system developers, administrators and any other participants, including those from other institutions,
jurisdictions and sectors;
⎯ providing decision-makers with the information necessary to make fully-informed policy, system design
and procurement decisions for proposed financial systems based on an understanding of the privacy
implications and risks and the options available for avoiding and/or mitigating those risks;
⎯ reducing the risk of having to terminate or substantially modify a financial service after its implementation
to comply with privacy requirements;
⎯ providing documentation on the business processes and
...

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