Sensitive personal data is a subset of personal data that reveals or relates to more intimate or confidential aspects of a person's identity, such as their racial or ethnic origin, religious or philosophical beliefs, health status, sexual orientation, political opinions, trade union membership, biometric or genetic data, or criminal record. Sensitive personal data is subject to more stringent legal and regulatory protections and requires a higher level of consent from the data subject to be processed. Mailing address, bank account login ID, and contact phone number are examples of personal data, but not sensitive personal data, as they do not reveal or relate to such intimate or confidential aspects of a person's identity.

To ensure the protection of personal data, privacy policies should mandate that access to information system applications be authorized by the business application owner, because they are the ones who are responsible for defining the business requirements, functions, and objectives of the applications. The business application owner can also determine the appropriate level of access for different users or groups based on their roles, responsibilities, and needs. The business application owner can also monitor and review the access control policies and procedures to ensure that they are effective and compliant with the privacy regulations and standards.
Reference:
Access Control Policy and Implementation Guides, CSRC
What is Authorization and Access Control?, ICANN

The principle of least privilege is the most important principle to apply when granting access to an ERP system that contains a significant amount of personal dat a. The principle of least privilege states that users should only have the minimum level of access and permissions necessary to perform their legitimate tasks and functions, and no more. Applying the principle of least privilege helps to protect the privacy and security of the personal data in the ERP system, as it reduces the risk of unauthorized or inappropriate access, disclosure, modification, or deletion of the data. It also helps to comply with the privacy laws and regulations, such as the GDPR, that require data controllers and processors to implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk.

Endpoint encryption is a security practice that transforms the data stored on a laptop or other device into an unreadable format using a secret key or algorithm. Endpoint encryption protects the privacy of data in case of loss or theft, by ensuring that only authorized parties can access and use the data, while unauthorized parties cannot decipher or modify the data without the key or algorithm. Endpoint encryption also helps to comply with data protection laws and regulations, such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), which require data controllers and processors to implement appropriate technical and organizational measures to safeguard personal data.
The other options are less effective or irrelevant for protecting the privacy of data stored on a laptop in case of loss or theft. Strong authentication controls, such as passwords, biometrics or multifactor authentication, are important for verifying the identity and access rights of users, but they do not protect the data from being accessed by bypassing or breaking the authentication mechanisms. Remote wipe is a feature that allows users or administrators to erase the data on a lost or stolen device remotely, but it depends on the availability of network connection and device power, and it may not prevent data recovery by sophisticated tools. Regular backups are a process of creating copies of data for recovery purposes, such as in case of data loss or corruption, but they do not protect the data from being accessed by unauthorized parties who may obtain the backup media or files.
Reference:
An Ethical Approach to Data Privacy Protection - ISACA, section 2: "Encryption is one of the most effective security controls available to enterprises, but it can be challenging to deploy and maintain across a complex enterprise landscape." How to Protect and Secure Your Data in 10 Ways - TechRepublic, section 1: "Encrypt your hard drive Most work laptops use BitLocker to encrypt local files. That way, if the computer is stolen or hacked, the data it contains will be useless to the malicious actor."
10 Tips to Protect Your Files on PC and Cloud - microsoft.com, section 1: "Encrypt your hard drive Most work laptops use BitLocker to encrypt local files. That way, if the computer is stolen or hacked, the data it contains will be useless to the malicious actor."
11 practical ways to keep your IT systems safe and secure | ICO, section 1: "Use strong passwords and multi-factor authentication Make sure you use strong passwords on smartphones, laptops, tablets, email accounts and any other devices or accounts where personal information is stored."

The first consideration when conducting a privacy impact assessment (PIA) is the applicable privacy legislation that governs the collection, processing, storage, transfer, and disposal of personal data within the scope of the assessment. The applicable privacy legislation may vary depending on the jurisdiction, sector, or purpose of the data processing activity. The PIA should identify and comply with the relevant legal requirements and obligations for data protection and privacy, such as obtaining consent, providing notice, ensuring data quality and security, respecting data subject rights, and reporting data breaches. The applicable privacy legislation also determines the criteria, methodology, and documentation for conducting the PIA.
Reference:
ISACA, Performing an Information Security and Privacy Risk Assessment1
ISACA, Best Practices for Privacy Audits2
ISACA, GDPR Data Protection Impact Assessments3
ISACA, GDPR Data Protection Impact Assessment Template4