What is one of the legal/policy drivers for conducting a Privacy Impact Assessment?

• A. The Freedom of Information Act
• B. Privacy Act of 1974 (Amended)
• C. The Federal Information Security Management Act
• D. National Security Agency Guidelines

Answer: (B)

The Privacy Impact Assessment (PIA) is primarily driven by the Privacy Act of 1974, which was designed to protect individuals' privacy rights by regulating how personal information is collected, maintained, and disclosed by federal agencies. This legislation mandates that agencies assess the impact of new or modified systems on individuals' privacy. As a result, conducting a PIA becomes a legal requirement when systems involve the handling of personally identifiable information (PII), helping to ensure compliance with the act's stipulations.

The Privacy Act also encourages transparency by requiring agencies to evaluate their policies and procedures concerning the handling of personal data, thereby fostering public trust. A PIA helps identify risks, evaluates how personal data flows through systems, and suggests measures to mitigate those risks, all of which align with the objectives of the Privacy Act.

Other acts and guidelines mentioned, while they may touch on aspects of privacy, do not specifically mandate the conduct of a Privacy Impact Assessment in the same way that the Privacy Act of 1974 does. Consequently, it is the Privacy Act that serves as the foundational legal driver for implementing PIAs in federal practices.