During a Privacy Impact Assessment (PIA) for a new Customer Relationship Management system, which of the following represents the MOST important principle that should guide an organization's data collection practices?
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Data protection - collecting useful data while ensuring strong security controls
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Data standardization - ensuring collected data adheres to common formats
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Data minimization - collecting relevant data for specified purposes
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Data maximization - collecting data to support business analytics
The principle of data minimization is a fundamental privacy concept which states that organizations should collect only the data that is necessary for a specific, identified purpose. This principle helps reduce privacy risks and potential liability by limiting the amount of personal data an organization processes and stores. It is a key requirement in many privacy regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). By adhering to data minimization, organizations reduce the scope of potential data breaches and demonstrate responsible data stewardship.
The other answers are incorrect because:
While protecting data is important, collecting and then securing excessive data still violates privacy principles
Maximizing data collection for future business analytics contradicts privacy principles and regulations
Standardizing data formats is related to data interoperability, not the ethical collection principles
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