Collecting personally identifiable information (PII) to store in a National Security System is the specific action that requires an organization to carry out a Privacy Impact Assessment (PIA) in the standard question you’re referring to.

Quick Scoop: Core Answer

In the common training/quiz item phrased as “Which action requires an organization to carry out a Privacy Impact Assessment?” , the correct choice is:

  • Collecting PII to store in a National Security System.

Other options such as:

  • Storing paper-based records
  • Collecting PII to store in a new information system
  • Collecting any Controlled Unclassified Information (CUI), including PII

are typically distractors in that question and are not marked as the correct answer in that learning context.

Why that action triggers a PIA

When PII is collected and stored in a National Security System , several high‑risk factors come together:

  • The data is identifiable (PII), so misuse or breach can directly impact individuals.
  • National security systems often involve extensive data sharing, powerful analytics, and long retention , amplifying potential privacy harms.
  • Laws and federal guidance require heightened privacy consideration for new or substantially changed systems that handle identifiable information, especially in sensitive domains such as national security.

Because of this, a formal PIA is required to document:

  • What data is collected and why
  • How it is stored, used, shared, and protected
  • What risks exist and how they are mitigated

Broader context: when PIAs are usually needed

Outside of that specific test question, modern privacy laws and government policies generally expect a PIA (or DPIA) whenever processing is likely to present a high risk to individuals , such as:

  1. New IT systems or major changes
    • Developing or procuring a new system that collects or manages identifiable information.
 * Making substantial changes to existing systems that alter how data is collected, used, or shared.
  1. High‑risk processing
    • Large‑scale monitoring or profiling of individuals.
    • Use of sensitive data (health, biometrics, precise location, etc.).
 * Targeted advertising or automated decision‑making that significantly affects people.
  1. Specific legal triggers
    • Some US state privacy laws (like Colorado and Virginia) require impact assessments for processing that presents a “heightened risk of harm” , including certain types of targeted ads, profiling, or sensitive data processing.

In short, in the quiz-style question you’re seeing, the expected correct answer is “Collecting PII to store in a National Security System” , but in real-world practice, any new or changed high‑risk processing of personal data will often require a PIA or DPIA under applicable law and policy.

Information gathered from public forums or data available on the internet and portrayed here.