Which tier in the NIST Privacy Framework is characterized as 'risk-informed'?

The tier characterized as 'risk-informed' in the NIST Privacy Framework is Tier 2. This tier represents an organization that has established a level of understanding of the privacy risks associated with its operations and is in the process of incorporating this understanding into its activities and decision-making processes.

In this tier, organizations are beginning to manage privacy risks in a proactive manner, relying on their assessment to inform policies, practices, and controls. They utilize risk assessments to guide their decision-making, which supports a suitable framework for managing privacy concerns. This approach ensures that the organization is not just reacting to risks but is actively engaged in identifying and mitigating them.

The other tiers reflect progressively higher levels of maturity concerning privacy risk management, with Tier 1 being unmanaged and Tier 3 and Tier 4 being more advanced in terms of implementing formalized and comprehensive management practices. Tier 3 underscores a more integrated and repeatable approach, while Tier 4 indicates a state where privacy risk management is fully embedded into the organization’s governance and is routinely assessed and refined. Thus, Tier 2's focus on being risk-informed makes it a critical stage in developing a robust privacy management program.