ExamGecko
Home Home / IAPP / CIPM

IAPP CIPM Practice Test - Questions Answers, Page 12

Question list
Search
Search

List of questions

Search

Related questions











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?

A.

Ace Space's documented procedures

A.

Ace Space's documented procedures

Answers
B.

Ace Space's employee training program

B.

Ace Space's employee training program

Answers
C.

Ace Space's vendor engagement protocols

C.

Ace Space's vendor engagement protocols

Answers
D.

Ace Space's content sharing practices on social media

D.

Ace Space's content sharing practices on social media

Answers
Suggested answer: D

Explanation:

The factor that Penny should not consider to establish the current baseline of Ace Space's privacy maturity is Ace Space's content sharing practices on social media. This is because this factor is not directly related to the privacy program elements that Penny should assess, such as leadership and organization, privacy risk management, engineering and information security, incident response, individual participation, transparency and redress, privacy training and awareness, and accountability1. The other factors are relevant to these elements and can help Penny measure the current state of Ace Space's privacy program against a recognized maturity model, such as the Privacy Capability Maturity Model (PCMM) developed by the Association of Corporate Counsel2. For example:

Ace Space's documented procedures can help Penny evaluate the level of formalization and standardization of the privacy policies and practices across the organization, as well as the alignment with the applicable legal and regulatory requirements1, 2.

Ace Space's employee training program can help Penny assess the level of awareness and competence of the staff on privacy issues and responsibilities, as well as the effectiveness and frequency of the training delivery and evaluation1, 2.

Ace Space's vendor engagement protocols can help Penny determine the level of due diligence and oversight of the third parties that process personal data on behalf of Ace Space, as well as the contractual and technical safeguards that are in place to protect the data1, 2.

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.

What is the best way for Penny to understand the location, classification and processing purpose of the personal data Ace Space has?

A.

Analyze the data inventory to map data flows

A.

Analyze the data inventory to map data flows

Answers
B.

Audit all vendors' privacy practices and safeguards

B.

Audit all vendors' privacy practices and safeguards

Answers
C.

Conduct a Privacy Impact Assessment for the company

C.

Conduct a Privacy Impact Assessment for the company

Answers
D.

Review all cloud contracts to identify the location of data servers used

D.

Review all cloud contracts to identify the location of data servers used

Answers
Suggested answer: A

Explanation:

The best way for Penny to understand the location, classification and processing purpose of the personal data Ace Space has is to analyze the data inventory to map data flows. A data inventory is a comprehensive record of the personal data that an organization collects, stores, uses and shares. It helps to identify the sources, categories, locations, recipients and retention periods of personal data. A data flow map is a visual representation of how personal data flows within and outside an organization. It helps to identify the data transfers, processing activities, legal bases, risks and safeguards of personal data.

By analyzing the data inventory and mapping the data flows, Penny can gain a clear picture of the personal data lifecycle at Ace Space and identify any gaps or issues that need to be addressed. For example, she can determine whether Ace Space has a lawful basis for processing personal data of EU customers, whether it has adequate security measures to protect personal data from unauthorized access or loss, whether it has appropriate contracts with its vendors and cloud providers to ensure compliance with applicable laws and regulations, and whether it has mechanisms to respect the rights and preferences of its customers.

The other options are not the best way for Penny to understand the location, classification and processing purpose of the personal data Ace Space has. Auditing all vendors' privacy practices and safeguards (B) is an important step to ensure that Ace Space's third-party processors are complying with their contractual obligations and legal requirements, but it does not provide a comprehensive overview of Ace Space's own personal data processing activities. Conducting a Privacy Impact Assessment (PIA) for the company is a useful tool to assess the privacy risks and impacts of a specific project or initiative involving personal data, but it does not provide a baseline understanding of the existing personal data landscape at Ace Space. Reviewing all cloud contracts to identify the location of data servers used (D) is a relevant aspect of understanding the location of personal data, but it does not cover other aspects such as classification and processing purpose.

CIPM Body of Knowledge Domain I: Privacy Program Governance - Task 1: Establish privacy program vision and strategy - Subtask 1: Identify applicable privacy laws, regulations and standards

CIPM Body of Knowledge Domain II: Privacy Program Operational Life Cycle - Task 1: Assess current state of privacy in an organization - Subtask 1: Conduct gap analysis

CIPM Study Guide - Chapter 2: Privacy Program Governance - Section 2.1: Data Inventory

CIPM Study Guide - Chapter 2: Privacy Program Governance - Section 2.2: Data Flow Mapping

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.

What information will be LEAST crucial from a privacy perspective in Penny's review of vendor contracts?

A.

Audit rights

A.

Audit rights

Answers
B.

Liability for a data breach

B.

Liability for a data breach

Answers
C.

Pricing for data security protections

C.

Pricing for data security protections

Answers
D.

The data a vendor will have access to

D.

The data a vendor will have access to

Answers
Suggested answer: C

Explanation:

The information that will be least crucial from a privacy perspective in Penny's review of vendor contracts is the pricing for data security protections . This is because the pricing for data security protections is a business decision that does not directly affect the privacy rights and obligations of Ace Space and its customers. The pricing for data security protections may be relevant for budgeting and negotiating purposes, but it does not determine the level or adequacy of data security measures that the vendor must provide to protect personal data.

The other options are more crucial from a privacy perspective in Penny's review of vendor contracts. Audit rights (A) are important to ensure that Ace Space can monitor and verify the vendor's compliance with the contract terms and the applicable privacy laws and regulations. Audit rights allow Ace Space to access the vendor's records, systems, policies and procedures related to personal data processing and to conduct inspections or assessments as needed. Liability for a data breach (B) is important to allocate the responsibility and consequences of a data breach involving personal data that the vendor processes on behalf of Ace Space. Liability for a data breach may include indemnification, compensation, notification, remediation and termination clauses that protect Ace Space's interests and obligations in the event of a data breach. The data a vendor will have access to (D) is important to define the scope, purpose, duration and conditions of the personal data processing that the vendor will perform for Ace Space. The data a vendor will have access to may include the categories, types, sources, recipients and retention periods of personal data that the vendor will collect, store, use or share on behalf of Ace Space.

CIPM Body of Knowledge Domain II: Privacy Program Operational Life Cycle - Task 3: Implement privacy program components - Subtask 3: Establish third-party processor management program

CIPM Study Guide - Chapter 4: Privacy Program Operational Life Cycle - Section 4.3: Third-Party Processor Management

Which of the documents below assists the Privacy Manager in identifying and responding to a request from an individual about what personal information the organization holds about then with whom the information is shared?

A.

Risk register

A.

Risk register

Answers
B.

Privacy policy

B.

Privacy policy

Answers
C.

Records retention schedule

C.

Records retention schedule

Answers
D.

Personal information inventory

D.

Personal information inventory

Answers
Suggested answer: D

Explanation:

A personal information inventory is a document that assists the Privacy Manager in identifying and responding to a request from an individual about what personal information the organization holds about them and with whom the information is shared. A personal information inventory is a comprehensive and detailed record of all personal information that an organization collects, uses, discloses, stores, and disposes of. It helps an organization map its data flows, assess its privacy risks, comply with its legal obligations, and respond to data subject requests. A personal information inventory should include information such as: the categories and sources of personal information; the purposes and legal bases for processing; the recipients and transfers of personal information; the retention periods and disposal methods; and the security measures and safeguards.

CIPM Body of Knowledge (2021), Domain IV: Privacy Program Operational Life Cycle, Section B: Protecting Personal Information, Subsection 3: Data Inventory

CIPM Study Guide (2021), Chapter 8: Protecting Personal Information, Section 8.3: Data Inventory

CIPM Textbook (2019), Chapter 8: Protecting Personal Information, Section 8.3: Data Inventory

CIPM Practice Exam (2021), Question 138

Which of the following is the optimum first step to take when creating a Privacy Officer governance model?

A.

Involve senior leadership.

A.

Involve senior leadership.

Answers
B.

Provide flexibility to the General Counsel Office.

B.

Provide flexibility to the General Counsel Office.

Answers
C.

Develop internal partnerships with IT and information security.

C.

Develop internal partnerships with IT and information security.

Answers
D.

Leverage communications and collaboration with public affairs teams.

D.

Leverage communications and collaboration with public affairs teams.

Answers
Suggested answer: A

Explanation:

The optimum first step to take when creating a Privacy Officer governance model is to involve senior leadership. Senior leadership plays a crucial role in establishing and supporting a privacy program within an organization. They can provide strategic direction, allocate resources, approve policies, endorse initiatives, communicate values, and demonstrate accountability. By involving senior leadership from the beginning, a Privacy Officer can ensure that the privacy program aligns with the organization's vision, mission, goals, and culture. Senior leadership can also help overcome potential barriers or resistance from other stakeholders by endorsing and promoting the privacy program.

CIPM Body of Knowledge (2021), Domain I: Privacy Program Governance, Section A: Privacy Governance Models, Subsection 1: Privacy Officer Governance Model

CIPM Study Guide (2021), Chapter 2: Privacy Governance Models, Section 2.1: Privacy Officer Governance Model

CIPM Textbook (2019), Chapter 2: Privacy Governance Models, Section 2.1: Privacy Officer Governance Model

CIPM Practice Exam (2021), Question 139

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

A.

Only publish what is legally necessary to reduce your liability.

A.

Only publish what is legally necessary to reduce your liability.

Answers
B.

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

B.

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

Answers
C.

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

C.

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

Answers
D.

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

D.

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

Answers
Suggested answer: D

Explanation:

Providing a dedicated privacy space with the privacy policy, explanatory documents and operation frameworks helps build trust with customers and stakeholders. A dedicated privacy space is a section on an organization's website or app that provides clear and transparent information about how the organization processes personal information and respects data subject rights. It can include documents such as: a privacy policy that explains what personal information is collected, why it is collected, how it is used, who it is shared with, and how it is protected; explanatory documents that provide more details or examples of specific processing activities or scenarios; and operation frameworks that describe the procedures and mechanisms for data subject requests, complaints, inquiries, or feedback. A dedicated privacy space can help customers and stakeholders understand the organization's privacy practices, choices, and values, and enhance their confidence and trust.

CIPM Body of Knowledge (2021), Domain II: Privacy Program Framework, Section A: Privacy Program Framework Components, Subsection 1: Privacy Policies

CIPM Study Guide (2021), Chapter 4: Privacy Program Framework Components, Section 4.1: Privacy Policies

CIPM Textbook (2019), Chapter 4: Privacy Program Framework Components, Section 4.1: Privacy Policies

CIPM Practice Exam (2021), Question 140

Which of the following is NOT an important factor to consider when developing a data retention policy?

A.

Technology resource.

A.

Technology resource.

Answers
B.

Business requirement.

B.

Business requirement.

Answers
C.

Organizational culture.

C.

Organizational culture.

Answers
D.

Compliance requirement

D.

Compliance requirement

Answers
Suggested answer: C

Explanation:

Organizational culture is not an important factor to consider when developing a data retention policy. A data retention policy is a document that defines how long an organization retains personal information for various purposes and how it disposes of it securely when it is no longer needed. A data retention policy should be based on factors such as: business requirements, such as operational needs, customer expectations, contractual obligations, or industry standards; compliance requirements, such as legal obligations, regulatory mandates, or audit recommendations; and technology resources, such as storage capacity, backup systems, encryption methods, or disposal tools. Organizational culture, which refers to the values, beliefs, norms, and behaviors that shape how an organization operates and interacts with its stakeholders, is not a relevant factor for determining data retention periods or disposal methods.

CIPM Body of Knowledge (2021), Domain IV: Privacy Program Operational Life Cycle, Section B: Protecting Personal Information, Subsection 4: Data Retention

CIPM Study Guide (2021), Chapter 8: Protecting Personal Information, Section 8.4: Data Retention

CIPM Textbook (2019), Chapter 8: Protecting Personal Information, Section 8.4: Data Retention

CIPM Practice Exam (2021), Question 141

When supporting the business and data privacy program expanding into a new jurisdiction, it is important to do all of the following EXCEPT?

A.

Identify the stakeholders.

A.

Identify the stakeholders.

Answers
B.

Appoint a new Privacy Officer (PO) for that jurisdiction.

B.

Appoint a new Privacy Officer (PO) for that jurisdiction.

Answers
C.

Perform an assessment of the laws applicable in that new jurisdiction.

C.

Perform an assessment of the laws applicable in that new jurisdiction.

Answers
D.

Consider culture and whether the privacy framework will need to account for changes in culture.

D.

Consider culture and whether the privacy framework will need to account for changes in culture.

Answers
Suggested answer: B

Explanation:

When expanding into a new jurisdiction, it is not necessary to appoint a new Privacy Officer (PO) for that jurisdiction, unless the local law requires it. The other options are important steps to ensure compliance with the new jurisdiction's privacy laws and regulations, as well as to align the privacy program with the business objectives and culture of the new market.Reference:CIPM Body of Knowledge, Domain I: Privacy Program Governance, Task 1: Establish the privacy program vision and strategy.

When building a data privacy program, what is a good starting point to understand the scope of privacy program needs?

A.

Perform Data Protection Impact Assessments (DPIAs).

A.

Perform Data Protection Impact Assessments (DPIAs).

Answers
B.

Perform Risk Assessments

B.

Perform Risk Assessments

Answers
C.

Complete a Data Inventory.

C.

Complete a Data Inventory.

Answers
D.

Review Audits.

D.

Review Audits.

Answers
Suggested answer: C

Explanation:

A data inventory is a good starting point to understand the scope of privacy program needs, as it provides a comprehensive overview of what personal data is collected, processed, stored, shared, and disposed of by the organization. A data inventory can help identify the legal obligations, risks, and gaps in the privacy program, as well as the opportunities for improvement and optimization. The other options are also important components of a privacy program, but they are more effective when based on a data inventory.Reference:CIPM Body of Knowledge, Domain II: Privacy Program Operational Life Cycle, Task 1: Assess the current state of the privacy program.

Which of the following actions is NOT required during a data privacy diligence process for Merger & Acquisition (M&A) deals?

A.

Revise inventory of applications that house personal data and data mapping.

A.

Revise inventory of applications that house personal data and data mapping.

Answers
B.

Update business processes to handle Data Subject Requests (DSRs).

B.

Update business processes to handle Data Subject Requests (DSRs).

Answers
C.

Compare the original use of personal data to post-merger use.

C.

Compare the original use of personal data to post-merger use.

Answers
D.

Perform a privacy readiness assessment before the deal.

D.

Perform a privacy readiness assessment before the deal.

Answers
Suggested answer: D

Explanation:

A privacy readiness assessment is not required during a data privacy diligence process for Merger & Acquisition (M&A) deals, as it is usually done before the deal to evaluate the privacy maturity and compliance level of the target organization. The other options are required during the data privacy diligence process to ensure that the personal data of both organizations are handled in accordance with the applicable laws and regulations, as well as the expectations of the data subjects and stakeholders.Reference:CIPM Body of Knowledge, Domain III: Privacy Program Management Activities, Task 4: Manage data transfers.

Total 180 questions
Go to page: of 18