Privacy by Design
An approach to system engineering and business practices that embeds privacy protections into the design and architecture of IT systems, processes, and products from the outset, rather than adding them as an afterthought.
Privacy by Design (PbD) was originally developed by Dr. Ann Cavoukian and has since been codified into law through GDPR Article 25, which requires data protection by design and by default. The concept rests on seven foundational principles: proactive not reactive measures, privacy as the default setting, privacy embedded into design, full functionality without unnecessary trade-offs, end-to-end security throughout the data lifecycle, visibility and transparency, and respect for user privacy. Under GDPR, controllers must implement appropriate technical and organizational measures designed to implement data protection principles both at the time of determining the means of processing and at the time of the processing itself.
In practice, privacy by design means that privacy considerations are integrated into every phase of the product and system development lifecycle. During requirements gathering, teams identify what personal data will be involved and minimize collection. During architecture design, privacy-enhancing technologies such as encryption, pseudonymization, and access controls are incorporated. During development, secure coding practices protect personal data. During testing, privacy requirements are verified alongside functional requirements. During deployment, default settings are configured to the most privacy-protective options. This approach is more effective and cost-efficient than retroactively bolting on privacy controls to existing systems.
For organizations pursuing compliance with multiple frameworks, privacy by design provides a unifying methodology. ISO 27001's emphasis on integrating security into processes aligns with embedding privacy into design. SOC 2's Privacy criteria benefit from systems that are architecturally designed to protect personal information. NIS2's cybersecurity risk management requirements are better met when security and privacy are built in from the start. Technology due diligence processes specifically evaluate whether an organization has adopted privacy by design principles, as they indicate both regulatory compliance maturity and reduced privacy-related technical debt. Organizations should document their privacy by design practices, including conducting Data Protection Impact Assessments for high-risk processing activities, to demonstrate their proactive approach to privacy protection.
Related frameworks
Related terms
Data Minimization
The principle that organizations should collect, process, and retain only the minimum amount of personal data necessary to fulfill a specific, stated purpose. Data minimization limits exposure risk by ensuring unnecessary data is never gathered in the first place.
Data Controller
Under GDPR, the entity that determines the purposes and means of processing personal data. The data controller decides why personal data is collected and how it will be used, and bears primary responsibility for compliance with data protection obligations.
Data Protection Impact Assessment
A structured process required by GDPR for assessing the potential impact of a data processing activity on individuals' privacy. DPIAs are mandatory when processing is likely to result in a high risk to the rights and freedoms of natural persons.
Encryption
The process of converting data into an encoded format that can only be read by authorized parties who possess the correct decryption key. Encryption protects data confidentiality both at rest (stored data) and in transit (data being transmitted over networks).
Purpose Limitation
The principle that personal data must be collected for specified, explicit, and legitimate purposes and not further processed in a manner incompatible with those original purposes.
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