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De-identification involves removing or obscuring personal identifiers from the data, so that the data cannot be traced back to specific individuals. This reduces the potential exposure in the event of a data breach because even if the data is compromised, it no longer contains direct identifiers that could be used to re-identify individuals. De-identification can be implemented in such a way that traceability is maintained, often through pseudonymization, where data can still be re-associated with the original individuals under specific controlled circumstances (e.g., with a key stored separately).
If there is a potential exposure the de-identified data will pose less of a privacy risk.