What is a key part of the equation when assessing risk?

Expected loss is a key part of the equation when assessing risk because it quantifies the potential impact of an event occurring that could lead to data breaches or other privacy violations. In the realm of data protection, evaluating risks involves understanding not just the likelihood of a negative event happening, but also the consequences that would result from that event. By determining the expected loss, organizations can prioritize their risk management efforts, allocate resources effectively, and implement appropriate security measures to mitigate those risks.

This consideration of expected loss allows organizations to integrate financial implications into their risk assessments, ensuring that privacy and data protection strategies are aligned with overall business objectives. Additionally, assessing expected losses helps organizations comply with legal and regulatory requirements by demonstrating due diligence in protecting personal data. This understanding is crucial as it supports informed decision-making for both data processing activities and broader organizational governance related to data.

While controller obligations, the purpose of processing, and data subject rights are all significant aspects of data protection and privacy compliance, they do not directly capture the risk assessment's financial and impact-oriented perspective that expected loss represents. These areas are essential in their own right, but they serve different functions in the broader context of privacy and data protection.