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IAPP Certified Information Privacy Manager (CIPM) Sample Questions (Q52-Q57):

NEW QUESTION # 52
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He feels certain he will be rewarded with a promotion for preventing negative consequences resulting from the company's outdated policies and procedures.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.
In consideration of the company's new initiatives, which of the following laws and regulations would be most appropriate for Albert to mention at the interview as a priority concern for the privacy team?

A. Health Insurance Portability and Accountability Act (HIPAA)
B. Gramm-Leach-Bliley Act (GLBA)
C. The Telephone Consumer Protection Act (TCPA)
D. The General Data Protection Regulation (GDPR)

Answer: D

NEW QUESTION # 53
Your marketing team wants to know why they need a check box for their SMS opt-in. You explain it is part of the consumer's right to?

A. Raise complaints.
B. Have access.
C. Be informed.
D. Request correction.

Answer: C

Explanation:
Explanation
The marketing team needs a check box for their SMS opt-in because it is part of the consumer's right to be informed. This right means that consumers have the right to know how their personal data is collected, used, shared, and protected by the organization. The check box allows consumers to give their consent and opt-in to receive SMS messages from the organization, and also informs them of the purpose and scope of such messages. The other rights are not relevant in this case, as they are related to other aspects of data processing, such as correction, complaints, and access. References: CIPM Body of Knowledge, Domain IV: Privacy Program Communication, Section A: Communicating to Stakeholders, Subsection 1: Consumer Rights.

NEW QUESTION # 54
When conducting due diligence during an acquisition, what should a privacy professional avoid?

A. Discussing with the acquired company the type and scope of their data processing.
B. Planning for impacts on the data processing operations post-acquisition.
C. Allowing legal in both companies to handle the privacy laws and compliance.
D. Benchmarking the two Companies privacy policies against one another.

Answer: C

Explanation:
Explanation
When conducting due diligence during an acquisition, a privacy professional should avoid allowing legal in both companies to handle the privacy laws and compliance. This is because privacy is not only a legal issue, but also a business, technical, and operational issue that requires cross-functional collaboration and expertise.
A privacy professional should be involved in the due diligence process to assess the privacy risks and opportunities of the acquisition, such as the type and scope of data processing, the data protection policies and practices, the data transfer mechanisms and agreements, the data breach history and response plans, and the impacts on the data processing operations post-acquisition. A privacy professional should also benchmark the two companies' privacy policies against one another to identify any gaps or inconsistencies that need to be addressed before or after the acquisition, . References: [CIPM - International Association of Privacy Professionals], [Free CIPM Study Guide - International Association of Privacy Professionals]

NEW QUESTION # 55
Under the General Data Protection Regulation (GDPR), which of the following situations would LEAST likely require a controller to notify a data subject?

A. A hacker publishes usernames, phone numbers and purchase history online after a cyber-attack
B. An encrypted USB key with sensitive personal data is stolen
C. A direct marketing email is sent with recipients visible in the 'cc' field
D. Personal data of a group of individuals is erroneously sent to the wrong mailing list

Answer: B

Explanation:
Under the GDPR, a controller must notify a data subject of a personal data breach without undue delay when the breach is likely to result in a high risk to the rights and freedoms of the data subject, unless one of the following conditions applies: the personal data are rendered unintelligible to any person who is not authorized to access it, such as by encryption; the controller has taken subsequent measures to ensure that the high risk is no longer likely to materialize; or the notification would involve disproportionate effort, in which case a public communication or similar measure may suffice. In this case, an encrypted USB key with sensitive personal data is stolen, but the personal data are presumably unintelligible to the thief, so the controller does not need to notify the data subject. However, the controller still needs to notify the supervisory authority within 72 hours of becoming aware of the breach, unless the breach is unlikely to result in a risk to the rights and freedoms of natural persons.
Reference:
CIPM Body of Knowledge (2021), Domain IV: Privacy Program Operational Life Cycle, Section B: Protecting Personal Information, Subsection 2: Data Breach Incident Planning and Management CIPM Study Guide (2021), Chapter 8: Protecting Personal Information, Section 8.2: Data Breach Incident Planning and Management CIPM Textbook (2019), Chapter 8: Protecting Personal Information, Section 8.2: Data Breach Incident Planning and Management CIPM Practice Exam (2021), Question 134 GDPR Article 33 and 3412

NEW QUESTION # 56
What is the main function of the Asia-Pacific Economic Cooperation Privacy Framework?

A. Marketing privacy protection technologies developed in the region.
B. Protecting data from parties outside the region.
C. Enabling regional data transfers.
D. Establishing legal requirements for privacy protection in the region.

Answer: C

Explanation:
Explanation
The main function of the Asia-Pacific Economic Cooperation Privacy Framework is enabling regional data transfers while protecting information privacy across APEC member economies. The Framework promotes a flexible approach to information privacy protection that avoids the creation of unnecessary barriers to information flows3 It is based on a set of common privacy principles that are consistent with the core values of the OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data3 The Framework also provides guidance for domestic implementation and international implementation of the privacy principles through various mechanisms, such as cross-border privacy rules (CBPRs), accountability agents, regulators, enforcement cooperation, and capacity building3 The Framework aims to facilitate the safe transfer of information between economies, enhance consumer trust and confidence in online transactions and information networks, encourage the use of electronic data to enhance and expand business opportunities, and provide technical assistance to economies that have yet to address privacy from a regulatory or policy perspective4 References: 3: APEC PRIVACY PRINCIPLES; 4: APEC Data Privacy Pathfinder

NEW QUESTION # 57
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