What is the purpose of a Privacy Policy?

A Privacy Policy serves as a formal statement that outlines how an organization collects, uses, discloses, and manages personal information. Its primary purpose is to guide members, employees, or stakeholders in the handling of personal information, ensuring compliance with privacy laws and organizational standards. This includes clear instructions on the rights of individuals related to their personal data, as well as the obligations and responsibilities of the organization in protecting that information.

While the other options touch upon important aspects of privacy governance, they do not directly encapsulate the core purpose of a Privacy Policy. For example, governing the release of public records pertains more to transparency laws rather than individual data handling practices. Assessing privacy impacts on government programs is related to Privacy Impact Assessments, which are specific processes and not the primary function of a privacy policy. Evaluating risks associated with data breaches speaks to risk management rather than the overarching purpose of informing stakeholders about personal data practices. Thus, the correct answer accurately reflects the central role of a Privacy Policy in guiding the handling of personal information.