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Question 31
What have experts identified as an important trend in privacy program development?
The narrowing of regulatory definitions of personal information.
The rollback of ambitious programs due to budgetary restraints.
The movement beyond crisis management to proactive prevention.
The stabilization of programs as the pace of new legal mandates slows.
An important trend in privacy program development is the movement beyond crisis management to proactive prevention. This means that instead of reacting to privacy breaches or incidents after they occur, organizations are taking steps to prevent them from happening in the first place. This involves implementing privacy by design principles, conducting privacy impact assessments, adopting privacy-enhancing technologies, training staff on privacy awareness and best practices, and monitoring compliance and performance. By doing so, organizations can reduce risks, costs, and reputational damage associated with privacy violations.Reference: [IAPP CIPM Study Guide], page 93-94; [Moving from Crisis Management to Proactive Prevention]
Question 32
SCENARIO
Please use the following to answer the next QUESTION:
Manasa is a product manager at Omnipresent Omnimedia, where she is responsible for leading the development of the company's flagship product, the Handy Helper. The Handy Helper is an application that can be used in the home to manage family calendars, do online shopping, and schedule doctor appointments. After having had a successful launch in the United States, the Handy Helper is about to be made available for purchase worldwide.
The packaging and user guide for the Handy Helper indicate that it is a 'privacy friendly' product suitable for the whole family, including children, but does not provide any further detail or privacy notice. In order to use the application, a family creates a single account, and the primary user has access to all information about the other users. Upon start up, the primary user must check a box consenting to receive marketing emails from Omnipresent Omnimedia and selected marketing partners in order to be able to use the application.
Sanjay, the head of privacy at Omnipresent Omnimedia, was working on an agreement with a European distributor of Handy Helper when he fielded many Questions about the product from the distributor. Sanjay needed to look more closely at the product in order to be able to answer the Questions as he was not involved in the product development process.
In speaking with the product team, he learned that the Handy Helper collected and stored all of a user's sensitive medical information for the medical appointment scheduler. In fact, all of the user's information is stored by Handy Helper for the additional purpose of creating additional products and to analyze usage of the product. This data is all stored in the cloud and is encrypted both during transmission and at rest.
Consistent with the CEO's philosophy that great new product ideas can come from anyone, all Omnipresent Omnimedia employees have access to user data under a program called Eureka. Omnipresent Omnimedia is hoping that at some point in the future, the data will reveal insights that could be used to create a fully automated application that runs on artificial intelligence, but as of yet, Eureka is not well-defined and is considered a long-term goal.
What step in the system development process did Manasa skip?
Obtain express written consent from users of the Handy Helper regarding marketing.
Work with Sanjay to review any necessary privacy requirements to be built into the product.
Certify that the Handy Helper meets the requirements of the EU-US Privacy Shield Framework.
Build the artificial intelligence feature so that users would not have to input sensitive information into the Handy Helper.
Manasa skipped the step of working with Sanjay to review any necessary privacy requirements to be built into the product.This step is part of the system analysis phase, which is less theoretical and focuses more on practical application1By working with Sanjay, Manasa could have identified the legal and ethical obligations that Omnipresent Omnimedia has to protect the privacy of its users, especially in different jurisdictions.She could have also incorporated privacy by design principles, such as data minimization, purpose limitation, and user consent, into the product development process2This would have helped to avoid potential privacy risks and violations that could harm the reputation and trust of the company and its customers.Reference:1:7 Phases of the System Development Life Cycle (With Tips);2: [Privacy by Design: The 7 Foundational Principles]
Question 33
SCENARIO
Please use the following to answer the next QUESTION:
Manasa is a product manager at Omnipresent Omnimedia, where she is responsible for leading the development of the company's flagship product, the Handy Helper. The Handy Helper is an application that can be used in the home to manage family calendars, do online shopping, and schedule doctor appointments. After having had a successful launch in the United States, the Handy Helper is about to be made available for purchase worldwide.
The packaging and user guide for the Handy Helper indicate that it is a 'privacy friendly' product suitable for the whole family, including children, but does not provide any further detail or privacy notice. In order to use the application, a family creates a single account, and the primary user has access to all information about the other users. Upon start up, the primary user must check a box consenting to receive marketing emails from Omnipresent Omnimedia and selected marketing partners in order to be able to use the application.
Sanjay, the head of privacy at Omnipresent Omnimedia, was working on an agreement with a European distributor of Handy Helper when he fielded many Questions about the product from the distributor. Sanjay needed to look more closely at the product in order to be able to answer the Questions as he was not involved in the product development process.
In speaking with the product team, he learned that the Handy Helper collected and stored all of a user's sensitive medical information for the medical appointment scheduler. In fact, all of the user's information is stored by Handy Helper for the additional purpose of creating additional products and to analyze usage of the product. This data is all stored in the cloud and is encrypted both during transmission and at rest.
Consistent with the CEO's philosophy that great new product ideas can come from anyone, all Omnipresent Omnimedia employees have access to user data under a program called Eureka. Omnipresent Omnimedia is hoping that at some point in the future, the data will reveal insights that could be used to create a fully automated application that runs on artificial intelligence, but as of yet, Eureka is not well-defined and is considered a long-term goal.
What administrative safeguards should be implemented to protect the collected data while in use by Manasa and her product management team?
Document the data flows for the collected data.
Conduct a Privacy Impact Assessment (PIA) to evaluate the risks involved.
Implement a policy restricting data access on a 'need to know' basis.
Limit data transfers to the US by keeping data collected in Europe within a local data center.
An administrative safeguard that should be implemented to protect the collected data while in use by Manasa and her product management team is a policy restricting data access on a ''need to know'' basis.This means that only authorized personnel who have a legitimate business purpose for accessing the data should be able to do so3This would help to prevent unauthorized or unnecessary access, use, or disclosure of sensitive or personal data by internal or external parties.It would also reduce the risk of data breaches, theft, or loss that could compromise the confidentiality, integrity, and availability of the data4Reference:3:HIPAA Security Series #2 - Administrative Safeguards - HHS.gov;4:Administrative Safeguards of the Security Rule: What Are They?
Question 34
SCENARIO
Please use the following to answer the next QUESTION:
Manasa is a product manager at Omnipresent Omnimedia, where she is responsible for leading the development of the company's flagship product, the Handy Helper. The Handy Helper is an application that can be used in the home to manage family calendars, do online shopping, and schedule doctor appointments. After having had a successful launch in the United States, the Handy Helper is about to be made available for purchase worldwide.
The packaging and user guide for the Handy Helper indicate that it is a 'privacy friendly' product suitable for the whole family, including children, but does not provide any further detail or privacy notice. In order to use the application, a family creates a single account, and the primary user has access to all information about the other users. Upon start up, the primary user must check a box consenting to receive marketing emails from Omnipresent Omnimedia and selected marketing partners in order to be able to use the application.
Sanjay, the head of privacy at Omnipresent Omnimedia, was working on an agreement with a European distributor of Handy Helper when he fielded many Questions about the product from the distributor. Sanjay needed to look more closely at the product in order to be able to answer the Questions as he was not involved in the product development process.
In speaking with the product team, he learned that the Handy Helper collected and stored all of a user's sensitive medical information for the medical appointment scheduler. In fact, all of the user's information is stored by Handy Helper for the additional purpose of creating additional products and to analyze usage of the product. This data is all stored in the cloud and is encrypted both during transmission and at rest.
Consistent with the CEO's philosophy that great new product ideas can come from anyone, all Omnipresent Omnimedia employees have access to user data under a program called Eureka. Omnipresent Omnimedia is hoping that at some point in the future, the data will reveal insights that could be used to create a fully automated application that runs on artificial intelligence, but as of yet, Eureka is not well-defined and is considered a long-term goal.
What element of the Privacy by Design (PbD) framework might the Handy Helper violate?
Failure to obtain opt-in consent to marketing.
Failure to observe data localization requirements.
Failure to implement the least privilege access standard.
Failure to integrate privacy throughout the system development life cycle.
The Handy Helper might violate the element of the Privacy by Design (PbD) framework that requires integrating privacy throughout the system development life cycle.According to the PbD framework, privacy should be embedded into the design and architecture of IT systems and business practices, not added as an afterthought1This means that privacy should be considered at every stage of the system development life cycle, from planning to analysis to design to development to implementation to maintenance2However, the Handy Helper seems to have been developed without involving Sanjay, the head of privacy, or conducting a privacy impact assessment (PIA) to identify and mitigate potential privacy risks3The product also lacks a clear and transparent privacy notice that informs users about what data is collected, how it is used, where it is stored, who has access to it, and what choices they have4These issues could expose the product to legal and reputational challenges, especially in regions with strict data protection regulations, such as Europe.Reference:1:Privacy by Design - The LIFE Institute;2:System Development Life Cycle - GeeksforGeeks;3: [Privacy Impact Assessment (PIA) | NZ Digital government];4: [Privacy Notices under EU Data Protection Law | Privacy International]
Question 35
SCENARIO
Please use the following to answer the next QUESTION:
Manasa is a product manager at Omnipresent Omnimedia, where she is responsible for leading the development of the company's flagship product, the Handy Helper. The Handy Helper is an application that can be used in the home to manage family calendars, do online shopping, and schedule doctor appointments. After having had a successful launch in the United States, the Handy Helper is about to be made available for purchase worldwide.
The packaging and user guide for the Handy Helper indicate that it is a 'privacy friendly' product suitable for the whole family, including children, but does not provide any further detail or privacy notice. In order to use the application, a family creates a single account, and the primary user has access to all information about the other users. Upon start up, the primary user must check a box consenting to receive marketing emails from Omnipresent Omnimedia and selected marketing partners in order to be able to use the application.
Sanjay, the head of privacy at Omnipresent Omnimedia, was working on an agreement with a European distributor of Handy Helper when he fielded many Questions about the product from the distributor. Sanjay needed to look more closely at the product in order to be able to answer the Questions as he was not involved in the product development process.
In speaking with the product team, he learned that the Handy Helper collected and stored all of a user's sensitive medical information for the medical appointment scheduler. In fact, all of the user's information is stored by Handy Helper for the additional purpose of creating additional products and to analyze usage of the product. This data is all stored in the cloud and is encrypted both during transmission and at rest.
Consistent with the CEO's philosophy that great new product ideas can come from anyone, all Omnipresent Omnimedia employees have access to user data under a program called Eureka. Omnipresent Omnimedia is hoping that at some point in the future, the data will reveal insights that could be used to create a fully automated application that runs on artificial intelligence, but as of yet, Eureka is not well-defined and is considered a long-term goal.
What can Sanjay do to minimize the risks of offering the product in Europe?
Sanjay should advise the distributor that Omnipresent Omnimedia has certified to the Privacy Shield Framework and there should be no issues.
Sanjay should work with Manasa to review and remediate the Handy Helper as a gating item before it is released.
Sanjay should document the data life cycle of the data collected by the Handy Helper.
Sanjay should write a privacy policy to include with the Handy Helper user guide.
Sanjay should work with Manasa to review and remediate the Handy Helper as a gating item before it is released. This means that Sanjay should collaborate with Manasa and her product team to evaluate the privacy implications of the product and address any gaps or issues before launching it in Europe. This could involve conducting a PIA, applying the PbD principles, revising the consent mechanism, updating the privacy notice, ensuring compliance with data localization requirements, implementing data security measures, and limiting data access based on the least privilege principle. By doing so, Sanjay could help minimize the risks of offering the product in Europe and avoid potential violations of the General Data Protection Regulation (GDPR) or other local laws that could result in fines, lawsuits, or loss of trust.
Question 36
Which statement is FALSE regarding the use of technical security controls?
Technical security controls are part of a data governance strategy.
Technical security controls deployed for one jurisdiction often satisfy another jurisdiction.
Most privacy legislation lists the types of technical security controls that must be implemented.
A person with security knowledge should be involved with the deployment of technical security controls.
The statement that is false regarding the use of technical security controls is that most privacy legislation lists the types of technical security controls that must be implemented.Technical security controls are the hardware and software components that protect a system against cyberattacks, such as encryption, firewalls, antivirus software, and access control mechanisms1However, most privacy legislation does not prescribe specific types of technical security controls that must be implemented by organizations.Instead, they usually require organizations to implement reasonable or appropriate technical security measures to protect personal data from unauthorized or unlawful access, use, disclosure, alteration, or destruction23The exact level and type of technical security controls may depend on various factors, such as the nature and sensitivity of the data, the risks and threats involved, the state of the art technology available, and the cost and feasibility of implementation4Therefore, organizations have some flexibility and discretion in choosing the most suitable technical security controls for their data processing activities.Reference:1:Technical Controls --- Cybersecurity Resilience - Resilient Energy Platform;2: [General Data Protection Regulation (GDPR) -- Official Legal Text], Article 32;3: [Privacy Act 1988], Schedule 1 - Australian Privacy Principles (APPs), APP 11;4:Technical Security Controls: Encryption, Firewalls & More
Question 37
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?
Perform a risk of harm analysis.
Report the incident to law enforcement.
Contact the recipient to delete the email.
Send firm-wide email notification to employees.
The first action that the privacy officer should take after being notified by the benefits manager that she accidentally sent out the retirement enrollment report of all employees to a wrong vendor is to perform a risk of harm analysis.A risk of harm analysis is a process of assessing the potential adverse consequences for the individuals whose personal data has been compromised by a data breach or incident5The purpose of this analysis is to determine whether the breach or incident poses a significant risk of harm to the affected individuals, such as identity theft, fraud, discrimination, physical harm, emotional distress, or reputational damage6The risk of harm analysis should consider various factors, such as the type and amount of data involved, the sensitivity and context of the data, the likelihood and severity of harm, the characteristics of the recipients or unauthorized parties who accessed the data, and the mitigating measures taken or available to reduce the harm7Based on this analysis, the privacy officer can then decide whether to notify the affected individuals, the relevant authorities, or other stakeholders about the breach or incident.Notification is usually required by law or best practice when there is a high risk of harm to the individuals as a result of the breach or incident8Notification can also help to mitigate the harm by allowing the individuals to take protective actions or seek remedies.Therefore, performing a risk of harm analysis is a crucial first step for responding to a data breach or incident.Reference:5:Can a risk of harm itself be a harm? | Analysis | Oxford Academic;6:No Harm Done? Assessing Risk of Harm under the Federal Breach Notification Rule;7:CCOHS: Hazard and Risk - Risk Assessment;8: Breach Notification Requirements in Canada | PrivacySense.net
Question 38
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.
To improve the facility's system of data security, Anton should consider following through with the plan for which of the following?
Customer communication.
Employee access to electronic storage.
Employee advisement regarding legal matters.
Controlled access at the company headquarters.
To improve the facility's system of data security, Anton should consider following through with the plan for controlled access at the company headquarters. This plan would help to prevent unauthorized physical access to the paper files, disks, and old computers that contain personal data of employees and customers.Physical security is an important aspect of data security that involves protecting hardware and storage devices from theft, damage, or tampering1By placing restrictions on who can enter the premises or access certain areas or rooms, Anton can reduce the risk of data breaches or incidents caused by intruders or insiders2He can also implement locks, alarms, cameras, or guards to enhance the physical security of the facility3Reference:1:Physical Security: What Is It?;2: [Physical Security: Why It's Important & How To Implement It];3: [Physical Security Best Practices: 10 Tips to Secure Your Workplace]
Question 39
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 of Anton's plans for improving the data management of the company is most unachievable?
His initiative to achieve regulatory compliance.
His intention to transition to electronic storage.
His objective for zero loss of personal information.
His intention to send notice letters to customers and employees.
Anton's objective for zero loss of personal information is the most unachievable among his plans for improving the data management of the company. While this objective is admirable and desirable, it is unrealistic and impractical to guarantee that no personal information will ever be lost due to a data breach or incident.Data breaches are inevitable and unpredictable events that can affect any organization regardless of its size or industry4Even with the best data security practices and tools in place, there is always a possibility of human error, system failure, malicious attack, or natural disaster that could compromise personal information5Therefore, Anton should focus on minimizing the likelihood and impact of data breaches rather than aiming for zero loss of personal information.He should also prepare a data breach response plan that outlines how to detect, contain, assess, report, and recover from a data breach in a timely and effective manner6Reference:4: [Data Breaches Are Inevitable: Here's How to Protect Your Business];5: The Top 5 Causes Of Data Breaches;6: Data Breach Response: A Guide for Business - Federal Trade Commission
Question 40
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?
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