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| Section | Objectives |
|---|---|
| Topic 1: Responding to Requests and Incidents | - Handle data subject requests - Manage data breaches and incidents - Coordinate with regulators |
| Topic 2: Assessing Data | - Conduct data inventory and mapping - Perform privacy impact assessments - Manage vendor and third-party risks |
| Topic 3: Protecting Personal Data | - Implement privacy and security controls - Handle cross-border data transfers - Manage data subject rights |
| Topic 4: Developing a Framework | - Identify applicable laws and frameworks - Define program scope and stakeholders - Establish privacy governance structure |
| Topic 5: Sustaining Program Performance | - Measure program effectiveness - Implement continuous improvement - Monitor and audit privacy program |
| Topic 6: Establishing Governance | - Create privacy policies and procedures - Establish reporting mechanisms - Define roles and responsibilities |
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NEW QUESTION # 159
Which of the following privacy frameworks are legally binding?
Answer: B
Explanation:
Explanation
Binding Corporate Rules (BCRs) are a set of legally binding rules that allow multinational corporations or groups of companies to transfer personal data across borders within their organization in compliance with the EU data protection law1 BCRs are approved by the competent data protection authorities in the EU and are enforceable by data subjects and the authorities2 BCRs are one of the mechanisms recognized by the EU General Data Protection Regulation (GDPR) to ensure an adequate level of protection for personal data transferred outside the European Economic Area (EEA)3
NEW QUESTION # 160
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?
Answer: B
Explanation:
Explanation
The most appropriate law for Albert to mention at the interview as a priority concern for the privacy team is the Health Insurance Portability and Accountability Act (HIPAA). HIPAA is a US federal law that establishes national standards for the protection of sensitive patient health information. HIPAA regulates the use, disclosure, and safeguarding of protected health information (PHI), which is any information that can identify a patient or relate to their health or health care services. HIPAA applies to covered entities, such as health plans, health care providers, and health care clearinghouses, and their business associates, such as vendors, contractors, or partners that access or handle PHI on their behalf. HIPAA requires covered entities and business associates to comply with the Privacy Rule, which sets forth the rights of individuals and the obligations of entities regarding PHI; the Security Rule, which specifies the administrative, technical, and physical safeguards to ensure the confidentiality, integrity, and availability of PHI; and the Breach Notification Rule, which requires the notification of individuals, HHS, and in some cases the media, in the event of a breach of unsecured PHI.
Since Treasure Box intends to acquire a medical supply company in the coming weeks, it is likely that it will become a business associate of some covered entities under HIPAA. Therefore, it will need to ensure that its privacy program is compliant with HIPAA requirements and that it has appropriate agreements and safeguards in place to protect PHI. Albert should mention this as a priority concern for the privacy team and demonstrate his awareness and knowledge of HIPAA.
The other options are not as relevant or important as HIPAA for Treasure Box's new initiatives. The Gramm-Leach-Bliley Act (GLBA) is a US federal law that requires financial institutions to explain how they share and protect their customers' non-public personal information. It also repealed the Glass-Steagall Act of
1933, which prohibited commercial banks from offering investment and insurance services. GLBA does not apply to Treasure Box since it is not a financial institution. The General Data Protection Regulation (GDPR) is an EU law that provides a comprehensive framework for the protection of personal data of individuals in the EU. It imposes strict obligations and rights on data controllers and processors regarding the collection, use, disclosure, and security of personal data. GDPR does not apply to Treasure Box since it has recently decided to limit its shipments to customers in the 48 contiguous states of the US. The Telephone Consumer Protection Act (TCPA) is a US federal law that restricts telemarketing calls, text messages, faxes, and prerecorded messages. It requires prior express consent from consumers before making such communications and provides consumers with the right to opt out or revoke their consent. TCPA may apply to Treasure Box since it engages in direct phone marketing, but it is not a new initiative or a priority concern for the privacy team. References: HIPAA; GLBA; GDPR; [TCPA]
NEW QUESTION # 161
An online retailer detects an incident involving customer shopping history but no keys have been compromised. The Privacy Offce is most concerned when it also involves?
Answer: D
Explanation:
An online retailer detects an incident involving customer shopping history but no keys have been compromised. The Privacy Office is most concerned when it also involves plain text personal identifiers.
Plain text personal identifiers are data elements that can directly identify an individual, such as name, email address, phone number, or social security number. Plain text means that the data is not encrypted or otherwise protected from unauthorized access or disclosure. If an incident involves plain text personal identifiers, it poses a high risk to the privacy and security of the customers, as their personal data could be exposed, stolen, misused, or manipulated by malicious actors. The Privacy Office should take immediate steps to contain, assess, notify, evaluate, and prevent such incidents, . References: [CIPM - International Association of Privacy Professionals], [Free CIPM Study Guide - International Association of Privacy Professionals]
NEW QUESTION # 162
An organization's privacy officer was just notified by the benefits manager that she accidentally sent out the retirement enrollment report of all employees to a wrong vendor.
Which of the following actions should the privacy officer take first?
Answer: C
NEW QUESTION # 163
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 dat a. 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?
Answer: D
Explanation:
In terms of compliance with regulatory and legislative changes, Anton has a misconception regarding the timeline for monitoring. He believes that the company should be safe for another five years after conducting a compliance assessment and documenting the analysis. However, this is a risky and unrealistic assumption that could expose the company to legal liabilities and penalties. Regulatory and legislative changes are dynamic and frequent in today's business environment. They can affect various aspects of the company's operations, such as data protection, online marketing, consumer rights, labor laws, tax laws, environmental laws, etc5 Therefore, the company needs to monitor these changes continuously and proactively to ensure compliance at all times. Waiting for five years to check for compliance again could result in missing important updates or requirements that could impact the company's business practices or obligations. Moreover, compliance monitoring is not only a one-time activity but an ongoing process that involves evaluating the effectiveness of the company's policies and procedures in meeting the regulatory standards and expectations6 Compliance monitoring also helps to identify any gaps or weaknesses in the company's compliance program and take corrective actions to improve it. Therefore, Anton should revise his timeline for monitoring regulatory and legislative changes and adopt a more regular and systematic approach that aligns with the company's risk profile and regulatory environment. Reference: 5: Regulatory Change Management: How To Keep Up With Regulatory Changes; 6: Compliance Monitoring - What Is It?
NEW QUESTION # 164
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