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IAPP CIPM Certified Information Privacy Manager (CIPM) Exam Practice Test

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Total 180 questions

Certified Information Privacy Manager (CIPM) Questions and Answers

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Question 1

Which of the following is a physical control that can limit privacy risk?

Options:

A.

Keypad or biometric access.

B.

user access reviews.

C.

Encryption.

D.

Tokenization.

Question 2

SCENARIO

Please use the following to answer the next QUESTION:

Edufox has hosted an annual convention of users of its famous e-learning software platform, and over time, it has become a grand event. It fills one of the large downtown conference hotels and overflows into the others, with several thousand attendees enjoying three days of presentations, panel discussions and networking. The convention is the centerpiece of the company's product rollout schedule and a great training opportunity for current users. The sales force also encourages prospective clients to attend to get a better sense of the ways in which the system can be customized to meet diverse needs and understand that when they buy into this system, they are joining a community that feels like family.

This year's conference is only three weeks away, and you have just heard news of a new initiative supporting it: a smartphone app for attendees. The app will support late registration, highlight the featured presentations and provide a mobile version of the conference program. It also links to a restaurant reservation system with the best cuisine in the areas featured. "It's going to be great," the developer, Deidre Hoffman, tells you, "if, that is, we actually get it working!" She laughs nervously but explains that because of the tight time frame she'd been given to build the app, she outsourced the job to a local firm. "It's just three young people," she says, "but they do great work." She describes some of the other apps they have built. When asked how they were selected for this job, Deidre shrugs. "They do good work, so I chose them."

Deidre is a terrific employee with a strong track record. That's why she's been charged to deliver this rushed project. You're sure she has the best interests of the company at heart, and you don't doubt that she's under pressure to meet a deadline that cannot be pushed back. However, you have concerns about the app's handling of personal data and its security safeguards. Over lunch in the break room, you start to talk to her

about it, but she quickly tries to reassure you, "I'm sure with your help we can fix any security issues if we have to, but I doubt there'll be any. These people build apps for a living, and they know what they're doing. You worry too much, but that's why you're so good at your job!"

What safeguard can most efficiently ensure that privacy protection is a dimension of relationships with vendors?

Options:

A.

Include appropriate language about privacy protection in vendor contracts.

B.

Perform a privacy audit on any vendor under consideration.

C.

Require that a person trained in privacy protection be part of all vendor selection teams.

D.

Do business only with vendors who are members of privacy trade associations.

Question 3

You would like to better understand how your organization can demonstrate compliance with international privacy standards and identify gaps for remediation. What steps could you take to achieve this objective?

Options:

A.

Carry out a second-party audit.

B.

Consult your local privacy regulator.

C.

Conduct an annual self assessment.

D.

Engage a third-party to conduct an audit.

Question 4

Training and awareness metrics in a privacy program are necessary to?

Options:

A.

Identify data breaches.

B.

Implement privacy policies.

C.

Demonstrate compliance with regulations.

D.

Educate customers on the organization's data practices.

Question 5

Which most accurately describes the reasons an organization will conduct a PIA?

Options:

A.

To assess an organization's compliance with applicable laws, regulations, standards, and internal procedures.

B.

To establish an inventory of its data processing activities in compliance with Article 30 of the GDPR.

C.

To identify and reduce the privacy risks to individuals at the commencement of a project.

D.

To analyze the impact of an incident response and determine next steps.

Question 6

SCENARIO

Please use the following to answer the next QUESTION:

As the Director of data protection for Consolidated Records Corporation, you are justifiably pleased with your accomplishments so far. Your hiring was precipitated by warnings from regulatory agencies following a series of relatively minor data breaches that could easily have been worse. However, you have not had a reportable incident for the three years that you have been with the company. In fact, you consider your program a model that others in the data storage industry may note in their own program development.

You started the program at Consolidated from a jumbled mix of policies and procedures and worked toward coherence across departments and throughout operations. You were aided along the way by the program's sponsor, the vice president of operations, as well as by a Privacy Team that started from a clear understanding of the need for change.

Initially, your work was greeted with little confidence or enthusiasm by the company's "old guard" among both the executive team and frontline personnel working with data and interfacing with clients. Through the use of metrics that showed the costs not only of the breaches that had occurred, but also projections of the costs that easily could occur given the current state of operations, you soon had the leaders and key decision-makers largely on your side. Many of the other employees were more resistant, but face-to-face meetings with each department and the development of a baseline privacy training program achieved sufficient "buy-in" to begin putting the proper procedures into place.

Now, privacy protection is an accepted component of all current operations involving personal or protected data and must be part of the end product of any process of technological development. While your approach is not systematic, it is fairly effective.

You are left contemplating:

What must be done to maintain the program and develop it beyond just a data breach prevention program? How can you build on your success?

What are the next action steps?

What analytic can be used to track the financial viability of the program as it develops?

Options:

A.

Cost basis.

B.

Gap analysis.

C.

Return to investment.

D.

Breach impact modeling.

Question 7

All of the following are components of a data collection notice EXCEPT?

Options:

A.

The categories of information shared with third parties

B.

The length of time the personal information will be stored.

C.

The meta-data which could be generated from collection of the information.

D.

The lawful interests pursued by the responsible party collecting the information.

Question 8

In which situation would a Privacy Impact Assessment (PIA) be the least likely to be required?

Options:

A.

If a company created a credit-scoring platform five years ago.

B.

If a health-care professional or lawyer processed personal data from a patient's file.

C.

If a social media company created a new product compiling personal data to generate user profiles.

D.

If an after-school club processed children's data to determine which children might have food allergies.

Question 9

When implementing an organization's privacy program, what right should be granted to the data subject?

Options:

A.

To have their data amended or erased if errors are found.

B.

To limit or refuse the disclosure of their data for any reason.

C.

To provide feedback regarding an organization's privacy policy.

D.

To verify that an organization uses the highest level of privacy protection available.

Question 10

If an organization maintains a separate ethics office, to whom would its officer typically report to in order to retain the greatest degree of independence?

Options:

A.

The Board of Directors.

B.

The Chief Financial Officer.

C.

The Human Resources Director.

D.

The organization's General Counsel.

Question 11

Which of the following information must be provided by the data controller when complying with GDPR “right to be informed” requirements?

Options:

A.

The purpose of personal data processing.

B.

The data subject’s right to withdraw consent

C.

The contact details of the Data Protection Officer (DPO).

D.

The name of any organizations with whom personal data was shared.

Question 12

The purpose of a data flow map is to help an organization do all of the following EXCEPT?

Options:

A.

Determine unidentified opportunities for information collection.

B.

Assist compliance with privacy-related laws and regulations.

C.

Identify any.

D.

Recognize who in the organization has access to what information.

Question 13

Protection from threats to facilities, systems that process and store electronic copies and IT work/equipment locations best describes which category of security control?

Options:

A.

Physical Control.

B.

Technical Control.

C.

Geographic Control.

D.

Administrative Control.

Question 14

If done correctly, how can a Data Protection Impact Assessment (DPIA) create a win/win scenario for organizations and individuals?

Options:

A.

By quickly identifying potentially problematic data attributes and reducing the risk exposure.

B.

By allowing Data Controllers to solicit feedback from individuals about how they feel about the potential data processing.

C.

By enabling Data Controllers to be proactive in their analysis of processing activities and ensuring compliance with the law.

D.

By better informing about the risks associated with the processing activity and improving the organization's transparency with individuals.

Question 15

Your company provides a SaaS tool for B2B services and does not interact with individual consumers. A client's current employee reaches out with a right to delete request. what is the most appropriate response?

Options:

A.

Forward the request to the contact on file for the client asking them how they would like you to proceed.

B.

Redirect the individual back to their employer to understand their rights and how this might impact access to company tools.

C.

Process the request assuming that the individual understands the implications to their organization if their information is deleted.

D.

Explain you are unable to process the request because business contact information and associated data is not covered under privacy rights laws.

Question 16

You would like your organization to be independently audited to demonstrate compliance with international privacy standards and to identify gaps for remediation.

Which type of audit would help you achieve this objective?

Options:

A.

First-party audit.

B.

Second-party audit.

C.

Third-party audit.

D.

Fourth-party audit.

Question 17

A Human Resources director at a company reported that a laptop containing employee payroll data was lost on the train. Which action should the company take IMMEDIATELY?

Options:

A.

Report the theft to law enforcement

B.

Wipe the hard drive remotely

C.

Report the theft to the senior management

D.

Perform a multi-factor risk analysis

Question 18

SCENARIO

Please use the following to answer the next question:

Liam is the newly appointed information technology (IT) compliance manager at Mesa, a USbased outdoor clothing brand with a global E-commerce presence. During his second week, he is contacted by the company’s IT audit manager, who informs him that the auditing team will be conducting a review of Mesa’s privacy compliance risk in a month.

A bit nervous about the audit, Liam asks his boss what his predecessor had completed related to privacy compliance before leaving the company. Liam is told that a consent management tool had been added to the website and they commissioned a privacy risk evaluation from a small consulting firm last year that determined that their risk exposure was relatively low given their current control environment. After reading the consultant’s report, Liam realized that the scope of the assessment was limited to breach notification laws in the US and the Payment Card Industry’s Data Security Standard (PCI DSS).

Not wanting to let down his new team, Liam kept his concerns about the report to himself and figured he could try to put some additional controls into place before the audit. Having some privacy compliance experience in his last role, Liam thought he might start by having discussions with the E-commerce and marketing teams.

The E-commerce Director informed him that they were still using the cookie consent tool forcibly placed on the home screen by the CIO, but could not understand the point since their office was not located in California or Europe. The marketing director touted his department’s success with purchasing email lists and taking a shotgun approach to direct marketing. Both directors highlighted their tracking tools on the website to enhance customer experience while learning more about where else the customer had shopped. The more people Liam met with, the more it became apparent that privacy awareness and the general control environment at Mesa needed help.

With three weeks before the audit, Liam updated Mesa's Privacy Notice himself, which was taken and revised from a competitor’s website. He also wrote policies and procedures outlining the roles and responsibilities for privacy within Mesa and distributed the document to all departments he knew of with access to personal information.

During this time. Liam also filled the backlog of data subject requests for deletion that had been sent to him by the customer service manager. Liam worked with application owners to remove these individual's information and order history from the customer relationship management (CRM) tool, the enterprise resource planning (ERP). the data warehouse and the email server.

At the audit kick-off meeting. Liam explained to his boss and her team that there may still be some room for improvement, but he thought the risk had been mitigated to an appropriate level based on the work he had done thus far.

After the audit had been completed, the audit manager and Liam met to discuss her team’s findings, and much to his dismay. Liam was told that none of the work he had completed prior to the audit followed best practices for governance and risk mitigation. In fact, his actions only opened the company up to additional risk and scrutiny. Based on these findings. Liam worked with external counsel and an established privacy consultant to develop a remediation plan.

Why do Mesa's E-commerce and marketing efforts need to be compliant with the GDPR?

Options:

A.

Mesa is US-based.

B.

Mesa uses mailing lists and engages in direct marketing.

C.

Mesa uses automated systems and tools to process personal data.

D.

Mesa has a global E-commerce presence and may have customers in Europe.

Question 19

Which of the following helps build trust with customers and stakeholders?

Options:

A.

Only publish what is legally necessary to reduce your liability.

B.

Enable customers to view and change their own personal information within a dedicated portal.

C.

Publish your privacy policy using broad language to ensure all of your organization’s activities are captured.

D.

Provide a dedicated privacy space with the privacy policy, explanatory documents and operation frameworks.

Question 20

A systems audit uncovered a shared drive folder containing sensitive employee data with no access controls and therefore was available for all employees to view. What is the first step to mitigate further risks?

Options:

A.

Notify all employees whose information was contained in the file.

B.

Check access logs to see who accessed the folder.

C.

Notify legal counsel of a privacy incident.

D.

Restrict access to the folder.

Question 21

SCENARIO

Please use the following to answer the next QUESTION:

Amira is thrilled about the sudden expansion of NatGen. As the joint Chief Executive Officer (CEO) with her long-time business partner Sadie, Amira has watched the company grow into a major competitor in the green energy market. The current line of products includes wind turbines, solar energy panels, and equipment for geothermal systems. A talented team of developers means that NatGen's line of products will only continue to grow.

With the expansion, Amira and Sadie have received advice from new senior staff members brought on to help manage the company's growth. One recent suggestion has been to combine the legal and security functions of the company to ensure observance of privacy laws and the company's own privacy policy. This sounds overly complicated to Amira, who wants departments to be able to use, collect, store, and dispose of customer data in ways that will best suit their needs. She does not want administrative oversight and complex structuring to get in the way of people doing innovative work.

Sadie has a similar outlook. The new Chief Information Officer (CIO) has proposed what Sadie believes is an unnecessarily long timetable for designing a new privacy program. She has assured him that NatGen will use the best possible equipment for electronic storage of customer and employee data. She simply needs a list of equipment and an estimate of its cost. But the CIO insists that many issues are necessary to consider before the company gets to that stage.

Regardless, Sadie and Amira insist on giving employees space to do their jobs. Both CEOs want to entrust the monitoring of employee policy compliance to low-level managers. Amira and Sadie believe these managers can adjust the company privacy policy according to what works best for their particular departments. NatGen's CEOs know that flexible interpretations of the privacy policy in the name of promoting green energy would be highly unlikely to raise any concerns with their customer base, as long as the data is always used in course of normal business activities.

Perhaps what has been most perplexing to Sadie and Amira has been the CIO's recommendation to institute a privacy compliance hotline. Sadie and Amira have relented on this point, but they hope to compromise by allowing employees to take turns handling reports of privacy policy violations. The implementation will be easy

because the employees need no special preparation. They will simply have to document any concerns they hear.

Sadie and Amira are aware that it will be challenging to stay true to their principles and guard against corporate culture strangling creativity and employee morale. They hope that all senior staff will see the benefit of trying a unique approach.

Based on the scenario, what additional change will increase the effectiveness of the privacy compliance hotline?

Options:

A.

Outsourcing the hotline.

B.

A system for staff education.

C.

Strict communication channels.

D.

An ethics complaint department.

Question 22

In regards to the collection of personal data conducted by an organization, what must the data subject be allowed to do?

Options:

A.

Evaluate the qualifications of a third-party processor before any data is transferred to that processor.

B.

Obtain a guarantee of prompt notification in instances involving unauthorized access of the data.

C.

Set a time-limit as to how long the personal data may be stored by the organization.

D.

Challenge the authenticity of the personal data and have it corrected if needed.

Question 23

SCENARIO

Please use the following to answer the next QUESTION:

Edufox has hosted an annual convention of users of its famous e-learning software platform, and over time, it has become a grand event. It fills one of the large downtown conference hotels and overflows into the others, with several thousand attendees enjoying three days of presentations, panel discussions and networking. The convention is the centerpiece of the company's product rollout schedule and a great training opportunity for current users. The sales force also encourages prospective clients to attend to get a better sense of the ways in which the system can be customized to meet diverse needs and understand that when they buy into this system, they are joining a community that feels like family.

This year's conference is only three weeks away, and you have just heard news of a new initiative supporting it: a smartphone app for attendees. The app will support late registration, highlight the featured presentations and provide a mobile version of the conference program. It also links to a restaurant reservation system with the best cuisine in the areas featured. "It's going to be great," the developer, Deidre Hoffman, tells you, "if, that is, we actually get it working!" She laughs nervously but explains that because of the tight time frame she'd been given to build the app, she outsourced the job to a local firm. "It's just three young people," she says, "but they do great work." She describes some of the other apps they have built. When asked how they were selected for this job, Deidre shrugs. "They do good work, so I chose them."

Deidre is a terrific employee with a strong track record. That's why she's been charged to deliver this rushed project. You're sure she has the best interests of the company at heart, and you don't doubt that she's under pressure to meet a deadline that cannot be pushed back. However, you have concerns about the app's handling of personal data and its security safeguards. Over lunch in the break room, you start to talk to her about it, but she quickly tries to reassure you, "I'm sure with your help we can fix any security issues if we have to, but I doubt there'll be any. These people build apps for a living, and they know what they're doing. You worry too much, but that's why you're so good at your job!"

You see evidence that company employees routinely circumvent the privacy officer in developing new initiatives.

How can you best draw attention to the scope of this problem?

Options:

A.

Insist upon one-on-one consultation with each person who works around the privacy officer.

B.

Develop a metric showing the number of initiatives launched without consultation and include it in reports, presentations, and consultation.

C.

Hold discussions with the department head of anyone who fails to consult with the privacy officer.

D.

Take your concerns straight to the Chief Executive Officer.

Question 24

What is the main function of the Asia-Pacific Economic Cooperation (APEC) Privacy Framework?

Options:

A.

Managing the data flows from parties outside the region.

B.

Establishing legal requirements for privacy protection in the region.

C.

Promoting privacy protection technologies developed in the region.

D.

Promoting consumer trust and business confidence in cross-border data flows.

Question 25

Why were the nongovernmental privacy organizations, Electronic Frontier Foundation (EFF) and Electronic Privacy Information Center (EPIC), established?

Options:

A.

To promote consumer confidence in the Internet industry.

B.

To improve the user experience during online shopping.

C.

To protect civil liberties and raise consumer awareness.

D.

To promote security on the Internet through strong encryption.

Question 26

Last year Ecosoft 8150 was hacked and a number of servers and programs were affected. Since the incident, the company started collecting metrics on data privacy and system outages to try to stop it from happening in the future.

What analysis would be most helpful based on the data they have collected?

Options:

A.

Return on Investment (ROI).

B.

Compliance analysis.

C.

Business Resiliency.

D.

Trend analysis.

Question 27

SCENARIO

Please use the following to answer the next QUESTION:

Henry Home Furnishings has built high-end furniture for nearly forty years. However, the new owner, Anton, has found some degree of disorganization after touring the company headquarters. His uncle Henry had always focused on production – not data processing – and Anton is concerned. In several storage rooms, he has found paper files, disks, and old computers that appear to contain the personal data of current and former employees and customers. Anton knows that a single break-in could irrevocably damage the company's relationship with its loyal customers. He intends to set a goal of guaranteed zero loss of personal information.

To this end, Anton originally planned to place restrictions on who was admitted to the physical premises of the company. However, Kenneth – his uncle's vice president and longtime confidante – wants to hold off on Anton's idea in favor of converting any paper records held at the company to electronic storage. Kenneth believes this process would only take one or two years. Anton likes this idea; he envisions a password- protected system that only he and Kenneth can access.

Anton also plans to divest the company of most of its subsidiaries. Not only will this make his job easier, but it will simplify the management of the stored data. The heads of subsidiaries like the art gallery and kitchenware store down the street will be responsible for their own information management. Then, any unneeded

subsidiary data still in Anton's possession can be destroyed within the next few years.

After learning of a recent security incident, Anton realizes that another crucial step will be notifying customers. Kenneth insists that two lost hard drives in Question are not cause for concern; all of the data was encrypted and not sensitive in nature. Anton does not want to take any chances, however. He intends on sending notice letters to all employees and customers to be safe.

Anton must also check for compliance with all legislative, regulatory, and market requirements related to privacy protection. Kenneth oversaw the development of the company's online presence about ten years ago, but Anton is not confident about his understanding of recent online marketing laws. Anton is assigning another trusted employee with a law background the task of the compliance assessment. After a thorough analysis, Anton knows the company should be safe for another five years, at which time he can order another check.

Documentation of this analysis will show auditors due diligence.

Anton has started down a long road toward improved management of the company, but he knows the effort is worth it. Anton wants his uncle's legacy to continue for many years to come.

What would the company's legal team most likely recommend to Anton regarding his planned communication with customers?

Options:

A.

To send consistent communication.

B.

To shift to electronic communication.

C.

To delay communications until local authorities are informed.

D.

To consider under what circumstances communication is necessary.

Question 28

SCENARIO

Please use the following to answer the next QUESTION:

For 15 years, Albert has worked at Treasure Box – a mail order company in the United States (U.S.) that used to sell decorative candles around the world, but has recently decided to limit its shipments to customers in the 48 contiguous states. Despite his years of experience, Albert is often overlooked for managerial positions. His frustration about not being promoted, coupled with his recent interest in issues of privacy protection, have motivated Albert to be an agent of positive change.

He will soon interview for a newly advertised position, and during the interview, Albert plans on making executives aware of lapses in the company’s privacy program. He feels certain he will be rewarded with a promotion for preventing negative consequences resulting from the company’s outdated policies and procedures.

For example, Albert has learned about the AICPA (American Institute of Certified Public Accountans)/CICA (Canadian Institute of Chartered Accountants) Privacy Maturity Model (PMM). Albert thinks the model is a useful way to measure Treasure Box’s ability to protect personal data. Albert has noticed that Treasure Box fails to meet the requirements of the highest level of maturity of this model; at his interview, Albert will pledge to assist the company with meeting this level in order to provide customers with the most rigorous security available.

Albert does want to show a positive outlook during his interview. He intends to praise the company’s commitment to the security of customer and employee personal data against external threats. However, Albert worries about the high turnover rate within the company, particularly in the area of direct phone marketing. He sees many unfamiliar faces every day who are hired to do the marketing, and he often hears complaints in the lunch room regarding long hours and low pay, as well as what seems to be flagrant disregard for company procedures.

In addition, Treasure Box has had two recent security incidents. The company has responded to the incidents with internal audits and updates to security safeguards. However, profits still seem to be affected and anecdotal evidence indicates that many people still harbor mistrust. Albert wants to help the company recover. He knows there is at least one incident the public in unaware of, although Albert does not know the details. He believes the company’s insistence on keeping the incident a secret could be a further detriment to its reputation. One further way that Albert wants to help Treasure Box regain its stature is by creating a toll-free number for customers, as well as a more efficient procedure for responding to customer concerns by postal mail.

In addition to his suggestions for improvement, Albert believes that his knowledge of the company’s recent business maneuvers will also impress the interviewers. For example, Albert is aware of the company’s intention to acquire a medical supply company in the coming weeks.

With his forward thinking, Albert hopes to convince the managers who will be interviewing him that he is right for the job.

What is one important factor that Albert fails to consider regarding Treasure Box’s response to their recent security incident?

Options:

A.

Who has access to the data

B.

What the nature of the data is

C.

How data at the company is collected

D.

How long data at the company is kept

Question 29

PbD is the framework that?

Options:

A.

Dictates the design of the system development life cycle.

B.

Establishes risk-based expectations for privacy management.

C.

Embeds privacy into the design of technology, systems and practices.

D.

Guides organizations in designing, implementing and managing privacy programs in line with privacy laws and best practices.

Question 30

SCENARIO

Please use the following to answer the next QUESTION:

John is the new privacy officer at the prestigious international law firm – A&M LLP. A&M LLP is very proud of its reputation in the practice areas of Trusts & Estates and Merger & Acquisition in both U.S. and Europe.

During lunch with a colleague from the Information Technology department, John heard that the Head of IT, Derrick, is about to outsource the firm's email continuity service to their existing email security vendor – MessageSafe. Being successful as an email hygiene vendor, MessageSafe is expanding its business by leasing cloud infrastructure from Cloud Inc. to host email continuity service for A&M LLP.

John is very concerned about this initiative. He recalled that MessageSafe was in the news six months ago due to a security breach. Immediately, John did a quick research of MessageSafe's previous breach and learned that the breach was caused by an unintentional mistake by an IT administrator. He scheduled a meeting with Derrick to address his concerns.

At the meeting, Derrick emphasized that email is the primary method for the firm's lawyers to communicate with clients, thus it is critical to have the email continuity service to avoid any possible email downtime. Derrick has been using the anti-spam service provided by MessageSafe for five years and is very happy with the quality of service provided by MessageSafe. In addition to the significant discount offered by MessageSafe, Derrick emphasized that he can also speed up the onboarding process since the firm already has a service contract in place with MessageSafe. The existing on-premises email continuity solution is about to reach its end of life very soon and he doesn't have the time or resource to look for another solution. Furthermore, the off-premises email continuity service will only be turned on when the email service at A&M LLP's primary and secondary data centers are both down, and the email messages stored at MessageSafe site for continuity service will be automatically deleted after 30 days.

Which of the following is the most effective control to enforce MessageSafe's implementation of appropriate technical countermeasures to protect the personal data received from A&M LLP?

Options:

A.

MessageSafe must apply due diligence before trusting Cloud Inc. with the personal data received from A&M LLP.

B.

MessageSafe must flow-down its data protection contract terms with A&M LLP to Cloud Inc.

C.

MessageSafe must apply appropriate security controls on the cloud infrastructure.

D.

MessageSafe must notify A&M LLP of a data breach.

Question 31

SCENARIO

Please use the following lo answer the next question:

The board risk committee of your organization is particularly concerned not only by the number and frequency of data breaches reported to it over the past 12 months, but also the inconsistency in responses and poor incident response turnaround times.

Upon reviewing the current incident response plan (IRP), it was discovered that while the business continuity plan (BCP) had been updated on time, the IRP, linked to BCP. was last updated over three years ago.

The board risk committee has noted this as high risk especially since company policy is to review and update policies and plans annually. Consequently, the newly appointed data protection officer (DPO) was requested to provide a paper on how she would remediate the situation.

As a seasoned data privacy professional, you have been requested to assist the new DPO.

Which additional proactive step listed below would best mitigate these risks in the future?

Options:

A.

Make the IRP a live document that is evaluated for completeness during each incident.

B.

Make copies of the IRP in various place so it can be accessed remotely or when offline.

C.

Add comments about incidents to the IRP to record what action was taken.

D.

Make sure that everyone listed in the IRP has a copy of the IRP

Question 32

What is the main purpose in notifying data subjects of a data breach?

Options:

A.

To avoid financial penalties and legal liability

B.

To enable regulators to understand trends and developments that may shape the law

C.

To ensure organizations have accountability for the sufficiency of their security measures

D.

To allow i ndividuals to take any actions required to protect the mselves from possible consequences

Question 33

If your organization has a recurring issue with colleagues not reporting personal data breaches, all of the following are advisable to do EXCEPT?

Options:

A.

Carry out a root cause analysis on each breach to understand why the incident happened.

B.

Communicate to everyone that breaches must be reported and how they should be reported.

C.

Provide role-specific training to areas where breaches are happening so they are more aware.

D.

Distribute a phishing exercise to all employees to test their ability to recognize a threat attempt.

Question 34

What is the function of the privacy operational life cycle?

Options:

A.

It establishes initial plans for privacy protection and implementation

B.

It allows the organization to respond to ever-changing privacy demands

C.

It ensures that outdated privacy policies are retired on a set schedule

D.

It allows privacy policies to mature to a fixed form

Question 35

“Respond” in the privacy operational lifecycle includes which of the following?

Options:

A.

Information security practices and functional area integration.

B.

Privacy awareness training and compliance monitoring.

C.

Communication to stakeholders and alignment to laws.

D.

Information requests and privacy rights requests.

Question 36

SCENARIO

Please use the following to answer the next question:

Liam is the newly appointed information technology (IT) compliance manager at Mesa, a USbased outdoor clothing brand with a global E-commerce presence. During his second week, he is contacted by the company’s IT audit manager, who informs him that the auditing team will be conducting a review of Mesa’s privacy compliance risk in a month.

A bit nervous about the audit, Liam asks his boss what his predecessor had completed related to privacy compliance before leaving the company. Liam is told that a consent management tool had been added to the website and they commissioned a privacy risk evaluation from a small consulting firm last year that determined that their risk exposure was relatively low given their current control environment. After reading the consultant’s report, Liam realized that the scope of the assessment was limited to breach notification laws in the US and the Payment Card Industry’s Data Security Standard (PCI DSS).

Not wanting to let down his new team, Liam kept his concerns about the report to himself and figured he could try to put some additional controls into place before the audit. Having some privacy compliance experience in his last role, Liam thought he might start by having discussions with the E-commerce and marketing teams.

The E-commerce Director informed him that they were still using the cookie consent tool forcibly placed on the home screen by the CIO, but could not understand the point since their office was not located in California or Europe. The marketing director touted his department’s success with purchasing email lists and taking a shotgun approach to direct marketing. Both directors highlighted their tracking tools on the website to enhance customer experience while learning more about where else the customer had shopped. The more people Liam met with, the more it became apparent that privacy awareness and the general control environment at Mesa needed help.

With three weeks before the audit, Liam updated Mesa's Privacy Notice himself, which was taken and revised from a competitor’s website. He also wrote policies and procedures outlining the roles and responsibilities for privacy within Mesa and distributed the document to all departments he knew of with access to personal information.

During this time. Liam also filled the backlog of data subject requests for deletion that had been sent to him by the customer service manager. Liam worked with application owners to remove these individual's information and order history from the customer relationship management (CRM) tool, the enterprise resource planning (ERP). the data warehouse and the email server.

At the audit kick-off meeting. Liam explained to his boss and her team that there may still be some room for improvement, but he thought the risk had been mitigated to an appropriate level based on the work he had done thus far.

After the audit had been completed, the audit manager and Liam met to discuss her team’s findings, and much to his dismay. Liam was told that none of the work he had completed prior to the audit followed best practices for governance and risk mitigation. In fact, his actions only opened the company up to additional risk and scrutiny. Based on these findings. Liam worked with external counsel and an established privacy consultant to develop a remediation plan.

Given the feedback provided to Liam after the audit, what maturity level would the audit team most likely have assigned to Mesa’s privacy policies and procedures if they use the Privacy Maturity Model (PMM)?

Options:

A.

Repeatable.

B.

Ad-hoc.

C.

Defined.

D.

Managed.

Question 37

An organization's business continuity plan or disaster recovery plan does NOT typically include what?

Options:

A.

Recovery time objectives.

B.

Emergency response guidelines.

C.

Statement of organizational responsibilities.

D.

Retention schedule for storage and destruction of information.

Question 38

There are different forms of monitoring available for organizations to consider when aligning with their privacy program goals.

Which of the following forms of monitoring is best described as ‘auditing’?

Options:

A.

Evaluating operations, systems, and processes.

B.

Tracking, reporting and documenting complaints from all sources.

C.

Assisting in the completion of attesting reporting for SOC2, ISO, or BS7799.

D.

Ensuring third parties have appropriate security and privacy requirements in place.

Question 39

Which of the following privacy frameworks are legally binding?

Options:

A.

Binding Corporate Rules (BCRs).

B.

Generally Accepted Privacy Principles (GAPP).

C.

Asia-Pacific Economic Cooperation (APEC) Privacy Framework.

D.

Organization for Economic Co-Operation and Development (OECD) Guidelines.

Question 40

You are the privacy officer at a university. Recently, the police have contacted you as they suspect that one of your students is using a library computer to commit financial fraud. The police would like your assistance in investigating this individual and are requesting computer logs and usage data of the student.

What Is your first step in responding to the request?

Options:

A.

Refuse the request as the police do not have a warrant.

B.

Provide the data to police and record it for your own archives.

C.

Contact the university's legal counsel to determine if the request is lawful.

D.

Review policies, procedures and legislation to determine the university's obligation to co-operate with the police.

Question 41

K a privacy professional wants to show that an organization's privacy program is working as intended, the professional should?

Options:

A.

Collect feedback from customers about the privacy program.

B.

Carry out a personal data breach tabletop exercise.

C.

Collect and analyze privacy program metrics.

D.

Review privacy policies.

Question 42

SCENARIO

Please use the following to answer the next QUESTION:

You lead the privacy office for a company that handles information from individuals living in several countries throughout Europe and the Americas. You begin that morning’s privacy review when a contracts officer sends you a message asking for a phone call. The message lacks clarity and detail, but you presume that data was lost.

When you contact the contracts officer, he tells you that he received a letter in the mail from a vendor stating that the vendor improperly shared information about your customers. He called the vendor and confirmed that your company recently surveyed exactly 2000 individuals about their most recent healthcare experience and sent those surveys to the vendor to transcribe it into a database, but the vendor forgot to encrypt the database as promised in the contract. As a result, the vendor has lost control of the data.

The vendor is extremely apologetic and offers to take responsibility for sending out the notifications. They tell you they set aside 2000 stamped postcards because that should reduce the time it takes to get the notice in the mail. One side is limited to their logo, but the other side is blank and they will accept whatever you want to write. You put their offer on hold and begin to develop the text around the space constraints. You are content to let the vendor’s logo be associated with the notification.

The notification explains that your company recently hired a vendor to store information about their most recent experience at St. Sebastian Hospital’s Clinic for Infectious Diseases. The vendor did not encrypt the information and no longer has control of it. All 2000 affected individuals are invited to sign-up for email notifications about their information. They simply need to go to your company’s website and watch a quick advertisement, then provide their name, email address, and month and year of birth.

You email the incident-response council for their buy-in before 9 a.m. If anything goes wrong in this situation, you want to diffuse the blame across your colleagues. Over the next eight hours, everyone emails their comments back and forth. The consultant who leads the incident-response team notes that it is his first day with the company, but he has been in other industries for 45 years and will do his best. One of the three lawyers on the council causes the conversation to veer off course, but it eventually gets back on track. At the end of the day, they vote to proceed with the notification you wrote and use the vendor’s postcards.

Shortly after the vendor mails the postcards, you learn the data was on a server that was stolen, and make the decision to have your company offer credit monitoring services. A quick internet search finds a credit monitoring company with a convincing name: Credit Under Lock and Key (CRUDLOK). Your sales rep has never handled a contract for 2000 people, but develops a proposal in about a day which says CRUDLOK will:

1.Send an enrollment invitation to everyone the day after the contract is signed.

2.Enroll someone with just their first name and the last-4 of their national identifier.

3.Monitor each enrollee’s credit for two years from the date of enrollment.

4.Send a monthly email with their credit rating and offers for credit-related services at market rates.

5.Charge your company 20% of the cost of any credit restoration.

You execute the contract and the enrollment invitations are emailed to the 2000 individuals. Three days later you sit down and document all that went well and all that could have gone better. You put it in a file to reference the next time an incident occurs.

What is the most concerning limitation of the incident-response council?

Options:

A.

You convened it to diffuse blame

B.

The council has an overabundance of attorneys

C.

It takes eight hours of emails to come to a decision

D.

The leader just joined the company as a consultant

Question 43

During a merger and acquisition, the most comprehensive review of privacy risks and gaps occurs when conducting what activity?

Options:

A.

Transfer Impact Assessment (TIA).

B.

Risk identification review.

C.

Due diligence.

D.

Integration.

Question 44

Which of the following is NOT typically a function of a Privacy Officer?

Options:

A.

Managing an organization's information security infrastructure.

B.

Serving as an interdepartmental liaison for privacy concerns.

C.

Monitoring an organization's compliance with privacy laws.

D.

Responding to information access requests from the public.

Question 45

What is a key feature of the privacy metric template adapted from the National Institute of Standards and Technology (NIST)?

Options:

A.

It provides suggestions about how to collect and measure data.

B.

It can be tailored to an organization's particular needs.

C.

It is updated annually to reflect changes in government policy.

D.

It is focused on organizations that do business internationally.

Question 46

Under the GDPR. when the applicable lawful basis for the processing of personal data is a legal obligation with which the controller must comply. which right can the data subject exercise?

Options:

A.

Right to withdraw consent.

B.

Right to data portability.

C.

Right to restriction.

D.

Right to erasure.

Question 47

Which term describes a piece of personal data that alone may not identify an individual?

Options:

A.

Unbundled data

B.

A singularity

C.

Non-aggregated infopoint

D.

A single attribute

Question 48

As a Data Protection Officer, one of your roles entails monitoring changes in laws and regulations and updating policies accordingly.

How would you most effectively execute this responsibility?

Options:

A.

Consult an external lawyer.

B.

Regularly engage regulators.

C.

Attend workshops and interact with other professionals.

D.

Subscribe to email list-serves that report on regulatory changes.

Question 49

All of the following are access control measures required by the Payment Card Industry Data Security Standard (PCI DSS) EXCEPT?

Options:

A.

Restrict physical access to cardholder data.

B.

Update antivirus software before granting access.

C.

Assign a unique ID to each person with computer access.

D.

Restrict access to cardholder data by business need-to-know.

Question 50

In a sample metric template, what does “target” mean?

Options:

A.

The suggested volume of data to collect

B.

The percentage of completion

C.

The threshold for a satisfactory rating

D.

The frequency at which the data is sampled

Question 51

Which of the following is TRUE about the Data Protection Impact Assessment (DPIA) process as required under the General Data Protection Regulation (GDPR)?

Options:

A.

The DPIA result must be reported to the corresponding supervisory authority.

B.

The DPIA report must be published to demonstrate the transparency of the data processing.

C.

The DPIA must include a description of the proposed processing operation and its purpose.

D.

The DPIA is required if the processing activity entails risk to the rights and freedoms of an EU individual.

Question 52

SCENARIO

Please use the following to answer the next QUESTION:

Your organization, the Chicago (U.S.)-based Society for Urban Greenspace, has used the same vendor to operate all aspects of an online store for several years. As a small nonprofit, the Society cannot afford the higher-priced options, but you have been relatively satisfied with this budget vendor, Shopping Cart Saver (SCS). Yes, there have been some issues. Twice, people who purchased items from the store have had their credit card information used fraudulently subsequent to transactions on your site, but in neither case did the investigation reveal with certainty that the Society’s store had been hacked. The thefts could have been employee-related.

Just as disconcerting was an incident where the organization discovered that SCS had sold information it had collected from customers to third parties. However, as Jason Roland, your SCS account representative, points out, it took only a phone call from you to clarify expectations and the “misunderstanding” has not occurred again.

As an information-technology program manager with the Society, the role of the privacy professional is only one of many you play. In all matters, however, you must consider the financial bottom line. While these problems with privacy protection have been significant, the additional revenues of sales of items such as shirts and coffee cups from the store have been significant. The Society’s operating budget is slim, and all sources of revenue are essential.

Now a new challenge has arisen. Jason called to say that starting in two weeks, the customer data from the store would now be stored on a data cloud. “The good news,” he says, “is that we have found a low-cost provider in Finland, where the data would also be held. So, while there may be a small charge to pass through to you, it won’t be exorbitant, especially considering the advantages of a cloud.”

Lately, you have been hearing about cloud computing and you know it’s fast becoming the new paradigm for various applications. However, you have heard mixed reviews about the potential impacts on privacy protection. You begin to research and discover that a number of the leading cloud service providers have signed a letter of intent to work together on shared conventions and technologies for privacy protection. You make a note to find out if Jason’s Finnish provider is signing on.

What is the best way to prevent the Finnish vendor from transferring data to another party?

Options:

A.

Restrict the vendor to using company security controls

B.

Offer company resources to assist with the processing

C.

Include transfer prohibitions in the vendor contract

D.

Lock the data down in its current location

Question 53

Which will best assist you in quickly identifying weaknesses in your network and storage?

Options:

A.

Running vulnerability scanning tools.

B.

Reviewing your privacy program metrics.

C.

Reviewing your role-based access controls.

D.

Establishing a complaint-monitoring process.

Question 54

SCENARIO

Please use the following to answer the next QUESTION:

Henry Home Furnishings has built high-end furniture for nearly forty years. However, the new owner, Anton, has found some degree of disorganization after touring the company headquarters. His uncle Henry had always focused on production – not data processing – and Anton is concerned. In several storage rooms, he has found paper files, disks, and old computers that appear to contain the personal data of current and former employees and customers. Anton knows that a single break-in could irrevocably damage the company's

relationship with its loyal customers. He intends to set a goal of guaranteed zero loss of personal information.

To this end, Anton originally planned to place restrictions on who was admitted to the physical premises of the company. However, Kenneth – his uncle's vice president and longtime confidante – wants to hold off on Anton's idea in favor of converting any paper records held at the company to electronic storage. Kenneth believes this process would only take one or two years. Anton likes this idea; he envisions a password- protected system that only he and Kenneth can access.

Anton also plans to divest the company of most of its subsidiaries. Not only will this make his job easier, but it will simplify the management of the stored data. The heads of subsidiaries like the art gallery and kitchenware store down the street will be responsible for their own information management. Then, any unneeded subsidiary data still in Anton's possession can be destroyed within the next few years.

After learning of a recent security incident, Anton realizes that another crucial step will be notifying customers. Kenneth insists that two lost hard drives in Question are not cause for concern; all of the data was encrypted and not sensitive in nature. Anton does not want to take any chances, however. He intends on sending notice letters to all employees and customers to be safe.

Anton must also check for compliance with all legislative, regulatory, and market requirements related to privacy protection. Kenneth oversaw the development of the company's online presence about ten years ago, but Anton is not confident about his understanding of recent online marketing laws. Anton is assigning another trusted employee with a law background the task of the compliance assessment. After a thorough analysis, Anton knows the company should be safe for another five years, at which time he can order another check.

Documentation of this analysis will show auditors due diligence.

Anton has started down a long road toward improved management of the company, but he knows the effort is worth it. Anton wants his uncle's legacy to continue for many years to come.

Which important principle of Data Lifecycle Management (DLM) will most likely be compromised if Anton executes his plan to limit data access to himself and Kenneth?

Options:

A.

Practicing data minimalism.

B.

Ensuring data retrievability.

C.

Implementing clear policies.

D.

Ensuring adequacy of infrastructure.

Question 55

All of the following would address your concern of the copy room EXCEPT?

Options:

A.

Placing a paper shredder in the copy room.

B.

Initiating a PIA.

C.

Hanging a poster reminding users to shred paper.

D.

Implementing a new paper record destruction policy.

Question 56

An organization can use Privacy-Enhancing Technologies (PETs) to?

Options:

A.

Replace current technical controls.

B.

Strengthen existing privacy controls.

C.

Ensure compliance with local privacy regulations.

D.

Produce data for the privacy professional to interpret.

Question 57

The theft of proprietary information could have best been prevented by?

Options:

A.

Doing criminal background checks on all contractors.

B.

Having requests for access reviewed by the privacy office.

C.

Escalating access requests for approval by the appropriate data custodian.

D.

Requiring multi-factor authentication for contractor access to confidential company data.

Question 58

The first step an organization should take when considering the use of a third-party's AI-based resume ranking tool is to?

Options:

A.

Secure stakeholder buy-in and approval to ensure the tool meets the organization's requirements.

B.

Conduct an assessment of the tool's impact both on privacy and on conformity with applicable AI regulation.

C.

Distribute a notice to the candidates whose resumes the tool will assess to ensure they understand and consent to the use of the tool.

D.

Secure appropriate contractual concessions to ensure that the developer is primarily responsible for any violation of applicable privacy law.

Question 59

SCENARIO

Please use the following to answer the next QUESTION:

As they company’s new chief executive officer, Thomas Goddard wants to be known as a leader in data protection. Goddard recently served as the chief financial officer of Hoopy.com, a pioneer in online video viewing with millions of users around the world. Unfortunately, Hoopy is infamous within privacy protection circles for its ethically questionable practices, including unauthorized sales of personal data to marketers. Hoopy also was the target of credit card data theft that made headlines around the world, as at least two million credit card numbers were thought to have been pilfered despite the company’s claims that “appropriate” data protection safeguards were in place. The scandal affected the company’s business as competitors were quick to market an increased level of protection while offering similar entertainment and media content. Within three weeks after the scandal broke, Hoopy founder and CEO Maxwell Martin, Goddard’s mentor, was forced to step down.

Goddard, however, seems to have landed on his feet, securing the CEO position at your company, Medialite, which is just emerging from its start-up phase. He sold the company’s board and investors on his vision of Medialite building its brand partly on the basis of industry-leading data protection standards and procedures. He may have been a key part of a lapsed or even rogue organization in matters of privacy but now he claims to be reformed and a true believer in privacy protection. In his first week on the job, he calls you into his office and explains that your primary work responsibility is to bring his vision for privacy to life. But you also detect some reservations. “We want Medialite to have absolutely the highest standards,” he says. “In fact, I want us to be able to say that we are the clear industry leader in privacy and data protection. However, I also need to be a responsible steward of the company’s finances. So, while I want the best solutions across the board, they also need to be cost effective.”

You are told to report back in a week’s time with your recommendations. Charged with this ambiguous mission, you depart the executive suite, already considering your next steps.

You are charged with making sure that privacy safeguards are in place for new products and initiatives. What is the best way to do this?

Options:

A.

Hold a meeting with stakeholders to create an interdepartmental protocol for new initiatives

B.

Institute Privacy by Design principles and practices across the organization

C.

Develop a plan for introducing privacy protections into the product development stage

D.

Conduct a gap analysis after deployment of new products, then mend any gaps that are revealed

Question 60

SCENARIO

Please use the following to answer the next QUESTION:

Penny has recently joined Ace Space, a company that sells homeware accessories online, as its new privacy officer. The company is based in California but thanks to some great publicity from a social media influencer last year, the company has received an influx of sales from the EU and has set up a regional office in Ireland to support this expansion. To become familiar with Ace Space’s practices and assess what her privacy priorities will be, Penny has set up meetings with a number of colleagues to hear about the work that they have been doing and their compliance efforts.

Penny’s colleague in Marketing is excited by the new sales and the company’s plans, but is also concerned that Penny may curtail some of the growth opportunities he has planned. He tells her “I heard someone in the breakroom talking about some new privacy laws but I really don’t think it affects us. We’re just a small company. I mean we just sell accessories online, so what’s the real risk?” He has also told her that he works with a number of small companies that help him get projects completed in a hurry. “We’ve got to meet our deadlines otherwise we lose money. I just sign the contracts and get Jim in finance to push through the payment. Reviewing the contracts takes time that we just don’t have.”

In her meeting with a member of the IT team, Penny has learned that although Ace Space has taken a number of precautions to protect its website from malicious activity, it has not taken the same level of care of its physical files or internal infrastructure. Penny’s colleague in IT has told her that a former employee lost an encrypted USB key with financial data on it when he left. The company nearly lost access to their customer database last year after they fell victim to a phishing attack. Penny is told by her IT colleague that the IT team “didn’t know what to do or who should do what. We hadn’t been trained on it but we’re a small team though, so

it worked out OK in the end.” Penny is concerned that these issues will compromise Ace Space’s privacy and data protection.

Penny is aware that the company has solid plans to grow its international sales and will be working closely with the CEO to give the organization a data “shake up”. Her mission is to cultivate a strong privacy culture within the company.

Penny has a meeting with Ace Space’s CEO today and has been asked to give her first impressions and an overview of her next steps.

To establish the current baseline of Ace Space’s privacy maturity, Penny should consider all of the following factors EXCEPT?

Options:

A.

Ace Space’s documented procedures

B.

Ace Space’s employee training program

C.

Ace Space’s vendor engagement protocols

D.

Ace Space’s content sharing practices on social media

Question 61

Under the General Data Protection Regulation (GDPR), what must be included in a written agreement between the controller and processor in relation to processing conducted on the controller's behalf?

Options:

A.

An obligation on the processor to report any personal data breach to the controller within 72 hours,

B.

An obligation on both parties to report any serious personal data breach to the supervisory authority

C.

An obligation on both parties to agree to a termination of the agreement if the other party is responsible for a personal data breach.

D.

An obligation on the processor to assist the controller in complying with the controller's obligations to notify the supervisory authority about personal data breaches.

Question 62

SCENARIO

Please use the following to answer the next QUESTION:

You lead the privacy office for a company that handles information from individuals living in several countries throughout Europe and the Americas. You begin that morning’s privacy review when a contracts officer sends you a message asking for a phone call. The message lacks clarity and detail, but you presume that data was lost.

When you contact the contracts officer, he tells you that he received a letter in the mail from a vendor stating

that the vendor improperly shared information about your customers. He called the vendor and confirmed that your company recently surveyed exactly 2000 individuals about their most recent healthcare experience and sent those surveys to the vendor to transcribe it into a database, but the vendor forgot to encrypt the database as promised in the contract. As a result, the vendor has lost control of the data.

The vendor is extremely apologetic and offers to take responsibility for sending out the notifications. They tell you they set aside 2000 stamped postcards because that should reduce the time it takes to get the notice in the mail. One side is limited to their logo, but the other side is blank and they will accept whatever you want to write. You put their offer on hold and begin to develop the text around the space constraints. You are content to let the vendor’s logo be associated with the notification.

The notification explains that your company recently hired a vendor to store information about their most recent experience at St. Sebastian Hospital’s Clinic for Infectious Diseases. The vendor did not encrypt the information and no longer has control of it. All 2000 affected individuals are invited to sign-up for email notifications about their information. They simply need to go to your company’s website and watch a quick advertisement, then provide their name, email address, and month and year of birth.

You email the incident-response council for their buy-in before 9 a.m. If anything goes wrong in this situation, you want to diffuse the blame across your colleagues. Over the next eight hours, everyone emails their comments back and forth. The consultant who leads the incident-response team notes that it is his first day with the company, but he has been in other industries for 45 years and will do his best. One of the three lawyers on the council causes the conversation to veer off course, but it eventually gets back on track. At the end of the day, they vote to proceed with the notification you wrote and use the vendor’s postcards.

Shortly after the vendor mails the postcards, you learn the data was on a server that was stolen, and make the decision to have your company offer credit monitoring services. A quick internet search finds a credit monitoring company with a convincing name: Credit Under Lock and Key (CRUDLOK). Your sales rep has never handled a contract for 2000 people, but develops a proposal in about a day which says CRUDLOK will:

1.Send an enrollment invitation to everyone the day after the contract is signed.

2.Enroll someone with just their first name and the last-4 of their national identifier.

3.Monitor each enrollee’s credit for two years from the date of enrollment.

4.Send a monthly email with their credit rating and offers for credit-related services at market rates.

5.Charge your company 20% of the cost of any credit restoration.

You execute the contract and the enrollment invitations are emailed to the 2000 individuals. Three days later you sit down and document all that went well and all that could have gone better. You put it in a file to reference the next time an incident occurs.

Regarding the credit monitoring, which of the following would be the greatest concern?

Options:

A.

The vendor’s representative does not have enough experience

B.

Signing a contract with CRUDLOK which lasts longer than one year

C.

The company did not collect enough identifiers to monitor one’s credit

D.

You are going to notify affected individuals via a letter followed by an email

Question 63

What is the key privacy objective in undertaking an evaluation of technical controls?

Options:

A.

To review and evaluate gaps in targeted internal privacy awareness training.

B.

To determine if the current privacy framework is adequate for the company's needs.

C.

To evaluate and mitigate third-party risk associated with service provider relationships.

D.

To identify and mitigate privacy risks associated with technical systems and data processing activities.

Question 64

SCENARIO

Please use the following to answer the next QUESTION:

Richard McAdams recently graduated law school and decided to return to the small town of Lexington, Virginia to help run his aging grandfather's law practice. The elder McAdams desired a limited, lighter role in the practice, with the hope that his grandson would eventually take over when he fully retires. In addition to hiring Richard, Mr. McAdams employs two paralegals, an administrative assistant, and a part-time IT specialist who handles all of their basic networking needs. He plans to hire more employees once Richard gets settled and assesses the office's strategies for growth.

Immediately upon arrival, Richard was amazed at the amount of work that needed to done in order to modernize the office, mostly in regard to the handling of clients' personal data. His first goal is to digitize all the records kept in file cabinets, as many of the documents contain personally identifiable financial and medical data. Also, Richard has noticed the massive amount of copying by the administrative assistant throughout the day, a practice that not only adds daily to the number of files in the file cabinets, but may create security issues unless a formal policy is firmly in place Richard is also concerned with the overuse of the communal copier/ printer located in plain view of clients who frequent the building. Yet another area of concern is the use of the same fax machine by all of the employees. Richard hopes to reduce its use dramatically in order to ensure that personal data receives the utmost security and protection, and eventually move toward a strict Internet faxing policy by the year's end.

Richard expressed his concerns to his grandfather, who agreed, that updating data storage, data security, and an overall approach to increasing the protection of personal data in all facets is necessary Mr. McAdams granted him the freedom and authority to do so. Now Richard is not only beginning a career as an attorney, but also functioning as the privacy officer of the small firm. Richard plans to meet with the IT employee the following day, to get insight into how the office computer system is currently set-up and managed.

As Richard begins to research more about Data Lifecycle Management (DLM), he discovers that the law office can lower the risk of a data breach by doing what?

Options:

A.

Prioritizing the data by order of importance.

B.

Minimizing the time it takes to retrieve the sensitive data.

C.

Reducing the volume and the type of data that is stored in its system.

D.

Increasing the number of experienced staff to code and categorize the incoming data.

Question 65

A Privacy Threshold Analysis (PTA), Privacy Impact Assessment (PIA) and Data Protection Impact Assessment (DPIA) are conducted during what phase of a System Development Life Cycle (SDLC)?

Options:

A.

Testing.

B.

Design.

C.

Deployment.

D.

Maintenance.

Question 66

What is the main reason for conducting a data inventory or data map of your organization?

Options:

A.

To test the security of your organization's main data systems.

B.

To assess different methods for collecting data by your organization.

C.

To know where your organization’s data is located and how it is used.

D.

To evaluate whether your vendors have the required policies and procedures in place.

Question 67

SCENARIO

Please use the following to answer the next QUESTION:

Henry Home Furnishings has built high-end furniture for nearly forty years. However, the new owner, Anton, has found some degree of disorganization after touring the company headquarters. His uncle Henry had always focused on production – not data processing – and Anton is concerned. In several storage rooms, he has found paper files, disks, and old computers that appear to contain the personal data of current and former employees and customers. Anton knows that a single break-in could irrevocably damage the company's relationship with its loyal customers. He intends to set a goal of guaranteed zero loss of personal information.

To this end, Anton originally planned to place restrictions on who was admitted to the physical premises of the company. However, Kenneth – his uncle's vice president and longtime confidante – wants to hold off on Anton's idea in favor of converting any paper records held at the company to electronic storage. Kenneth

believes this process would only take one or two years. Anton likes this idea; he envisions a password- protected system that only he and Kenneth can access.

Anton also plans to divest the company of most of its subsidiaries. Not only will this make his job easier, but it will simplify the management of the stored data. The heads of subsidiaries like the art gallery and kitchenware store down the street will be responsible for their own information management. Then, any unneeded subsidiary data still in Anton's possession can be destroyed within the next few years.

After learning of a recent security incident, Anton realizes that another crucial step will be notifying customers. Kenneth insists that two lost hard drives in Question are not cause for concern; all of the data was encrypted and not sensitive in nature. Anton does not want to take any chances, however. He intends on sending notice letters to all employees and customers to be safe.

Anton must also check for compliance with all legislative, regulatory, and market requirements related to privacy protection. Kenneth oversaw the development of the company's online presence about ten years ago, but Anton is not confident about his understanding of recent online marketing laws. Anton is assigning another trusted employee with a law background the task of the compliance assessment. After a thorough analysis, Anton knows the company should be safe for another five years, at which time he can order another check.

Documentation of this analysis will show auditors due diligence.

Anton has started down a long road toward improved management of the company, but he knows the effort is worth it. Anton wants his uncle's legacy to continue for many years to come.

In terms of compliance with regulatory and legislative changes, Anton has a misconception regarding?

Options:

A.

The timeline for monitoring.

B.

The method of recordkeeping.

C.

The use of internal employees.

D.

The type of required qualifications.

Question 68

SCENARIO

Please use the following to answer the next QUESTION:

It's just what you were afraid of. Without consulting you, the information technology director at your organization launched a new initiative to encourage employees to use personal devices for conducting business. The initiative made purchasing a new, high-specification laptop computer an attractive option, with discounted laptops paid for as a payroll deduction spread over a year of paychecks. The organization is also paying the sales taxes. It's a great deal, and after a month, more than half the organization's employees have signed on and acquired new laptops. Walking through the facility, you see them happily customizing and comparing notes on their new computers, and at the end of the day, most take their laptops with them, potentially carrying personal data to their homes or other unknown locations. It's enough to give you data- protection nightmares, and you've pointed out to the information technology Director and many others in the organization the potential hazards of this new practice, including the inevitability of eventual data loss or theft.

Today you have in your office a representative of the organization's marketing department who shares with you, reluctantly, a story with potentially serious consequences. The night before, straight from work, with laptop in hand, he went to the Bull and Horn Pub to play billiards with his friends. A fine night of sport and socializing began, with the laptop "safely" tucked on a bench, beneath his jacket. Later that night, when it was time to depart, he retrieved the jacket, but the laptop was gone. It was not beneath the bench or on another bench nearby. The waitstaff had not seen it. His friends were not playing a joke on him. After a sleepless night, he confirmed it this morning, stopping by the pub to talk to the cleanup crew. They had not found it. The laptop was missing. Stolen, it seems. He looks at you, embarrassed and upset.

You ask him if the laptop contains any personal data from clients, and, sadly, he nods his head, yes. He believes it contains files on about 100 clients, including names, addresses and governmental identification numbers. He sighs and places his head in his hands in despair.

What should you do first to ascertain additional information about the loss of data?

Options:

A.

Interview the person reporting the incident following a standard protocol.

B.

Call the police to investigate even if you are unsure a crime occurred.

C.

Investigate the background of the person reporting the incident.

D.

Check company records of the latest backups to see what data may be recoverable.

Question 69

SCENARIO

Please use the following to answer the next QUESTION:

Natalia, CFO of the Nationwide Grill restaurant chain, had never seen her fellow executives so anxious. Last week, a data processing firm used by the company reported that its system may have been hacked, and customer data such as names, addresses, and birthdays may have been compromised. Although the attempt was proven unsuccessful, the scare has prompted several Nationwide Grill executives to Question the company's privacy program at today's meeting.

Alice, a vice president, said that the incident could have opened the door to lawsuits, potentially damaging Nationwide Grill's market position. The Chief Information Officer (CIO), Brendan, tried to assure her that even if there had been an actual breach, the chances of a successful suit against the company were slim. But Alice remained unconvinced.

Spencer – a former CEO and currently a senior advisor – said that he had always warned against the use of contractors for data processing. At the very least, he argued, they should be held contractually liable for telling customers about any security incidents. In his view, Nationwide Grill should not be forced to soil the company name for a problem it did not cause.

One of the business development (BD) executives, Haley, then spoke, imploring everyone to see reason.

"Breaches can happen, despite organizations' best efforts," she remarked. "Reasonable preparedness is key." She reminded everyone of the incident seven years ago when the large grocery chain Tinkerton's had its financial information compromised after a large order of Nationwide Grill frozen dinners. As a long-time BD executive with a solid understanding of Tinkerton's's corporate culture, built up through many years of cultivating relationships, Haley was able to successfully manage the company's incident response.

Spencer replied that acting with reason means allowing security to be handled by the security functions within the company – not BD staff. In a similar way, he said, Human Resources (HR) needs to do a better job training employees to prevent incidents. He pointed out that Nationwide Grill employees are overwhelmed with posters, emails, and memos from both HR and the ethics department related to the company's privacy program. Both the volume and the duplication of information means that it is often ignored altogether.

Spencer said, "The company needs to dedicate itself to its privacy program and set regular in-person trainings for all staff once a month."

Alice responded that the suggestion, while well-meaning, is not practical. With many locations, local HR departments need to have flexibility with their training schedules. Silently, Natalia agreed.

The senior advisor, Spencer, has a misconception regarding?

Options:

A.

The amount of responsibility that a data controller retains.

B.

The appropriate role of an organization's security department.

C.

The degree to which training can lessen the number of security incidents.

D.

The role of Human Resources employees in an organization's privacy program.

Question 70

How are individual program needs and specific organizational goals identified in privacy framework development?

Options:

A.

By employing metrics to align privacy protection with objectives.

B.

Through conversations with the privacy team.

C.

By employing an industry-standard needs analysis.

D.

Through creation of the business case.

Question 71

A new business crafting its privacy policy is struggling with how it will define the term "personal data."

Which of the following should inform this decision?

Options:

A.

The types of special categories of data being processed.

B.

The business's requirements for storing collected data.

C.

The amount of data the business expects to collect.

D.

The privacy laws to which the business is subject.

Question 72

SCENARIO

Please use the following to answer the next QUESTION:

Edufox has hosted an annual convention of users of its famous e-learning software platform, and over time, it has become a grand event. It fills one of the large downtown conference hotels and overflows into the others, with several thousand attendees enjoying three days of presentations, panel discussions and networking. The convention is the centerpiece of the company's product rollout schedule and a great training opportunity for current users. The sales force also encourages prospective clients to attend to get a better sense of the ways in which the system can be customized to meet diverse needs and understand that when they buy into this system, they are joining a community that feels like family.

This year's conference is only three weeks away, and you have just heard news of a new initiative supporting it: a smartphone app for attendees. The app will support late registration, highlight the featured presentations and provide a mobile version of the conference program. It also links to a restaurant reservation system with the best cuisine in the areas featured. "It's going to be great," the developer, Deidre Hoffman, tells you, "if, that is, we actually get it working!" She laughs nervously but explains that because of the tight time frame she'd been given to build the app, she outsourced the job to a local firm. "It's just three young people," she says, "but they do great work." She describes some of the other apps they have built. When asked how they were selected for this job, Deidre shrugs. "They do good work, so I chose them."

Deidre is a terrific employee with a strong track record. That's why she's been charged to deliver this rushed project. You're sure she has the best interests of the company at heart, and you don't doubt that she's under pressure to meet a deadline that cannot be pushed back. However, you have concerns about the app's handling of personal data and its security safeguards. Over lunch in the break room, you start to talk to her about it, but she quickly tries to reassure you, "I'm sure with your help we can fix any security issues if we have to, but I doubt there'll be any. These people build apps for a living, and they know what they're doing. You worry too much, but that's why you're so good at your job!"

Since it is too late to restructure the contract with the vendor or prevent the app from being deployed, what is the best step for you to take next?

Options:

A.

Implement a more comprehensive suite of information security controls than the one used by the vendor.

B.

Ask the vendor for verifiable information about their privacy protections so weaknesses can be identified.

C.

Develop security protocols for the vendor and mandate that they be deployed.

D.

Insist on an audit of the vendor's privacy procedures and safeguards.

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Total 180 questions