IAPP CIPP-E Practice Test - Questions Answers, Page 27
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In relation to third countries and international organizations, which of the following shall, along with the supervisory authorities, take appropriate steps to develop international cooperation mechanisms for the enforcement of data protection legislation?
The European Parliament
The Council of the European Union.
The designated Data Protection Officers
The European Commission
A company wishes to transfer personal data to a country outside of the European Union/EEA In order to do so, they are planning an assessment of the country's laws and practices, knowing that these may impinge upon the transfer safeguards they intend to use
All of the following factors would be relevant for the company to consider EXCEPT'?
Any onward transfers, such as transfers of personal data to a sub-processor in the same or another third country.
The process of modernization in the third country concerned and their access to emerging technologies that rely on international transfers of personal data
The technical, financial, and staff resources available to an authority m the third country concerned that may access the personal data to be transferred
The contractual clauses between the data controller or processor established in the European Union/EEA and the recipient of the transfer established in the third country concerned
What is the primary purpose of Convention 108+, which amends the Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data?
To issue updated guidelines for data transfers from the EU to third-country signatories to the Convention.
To modify the process for third countries to obtain an adequacy decision from the European Commission.
To strengthen data protection in line with the European and international regulatory framework.
To establish new data subject rights and safeguards for consumers in the EU member states.
SCENARIO
Please use the following to answer the next question:
Jane starts her new role as a Data Protection Officer (DPO) at a Malta-based company that allows anyone to buy and sell cryptocurrencies via its online platform.
The company stores and processes the personal data of its customers in a dedicated data center located in Malta (EU).
People wishing to trade cryptocurrencies are required to open an online account on the platform. They then must successfully pass a Know Your Customer (KYC) due diligence procedure aimed at preventing money laundering and ensuring compliance with applicable financial regulations.
The non-European customers are also required to waive all their GDPR rights by reading a disclaimer written in bold and ticking a checkbox on a separate page in order to get their account approved on the platform.
All customers must likewise accept the terms of service of the platform. The terms of service also include a privacy policy section, saying, among other things, that if a customer fails the KYC process, its KYC data will be automatically shared with the national anti-money laundering agency.
The KYC procedure requires customers to answer many questions, including whether they have any criminal convictions, whether they use recreational drugs or have problems with alcohol, and whether they have a terminal illness. While providing this data, customers see a conspicuous message saying that this data is meant only to prevent fraud and account takeover, and will be never shared with private third parties.
The company regularly conducts external security testing of its online systems by independent cybersecurity companies from the EU. At the final stage of testing, the company provides cybersecurity assessors with access to its central database to review security permissions, roles and policies. Personal data in the database is encrypted; however, cybersecurity assessors usually have access to the decryption keys obtained while running initial security testing. The assessors must strictly follow the guidelines imposed by the company during the entire testing and auditing process.
All customer data, including trading activities and all internal communications with technical support, are permanently stored in a secured AWS S3 Glacier cloud data storage, located in Ireland, for backup and compliance purposes. The data is securely transferred to the cloud and then is properly encrypted while at rest by using AWS-native encryption mechanisms. These mechanisms give AWS the necessary technical means to encrypt and decrypt the data when such is required by the company. There is no data processing agreement between AWS and the company.
Should Jane modify the required GDPR rights waiver for non-European residents?
Yes, the waiver must not apply to any residents of countries with an adequacy decision from the EC.
Yes, this clause must be entirely removed as all customers, regardless of residence or nationality, shall enjoy the same individual rights granted under GDPR.
No, the non-EU residents are not protected by GDPR unless they are physically located in the EU.
No, but all non-EU residents must manually sign a separate waiver to ensure its lawfulness and enforceability under GDPR.
You are the new Data Protection Officer for your company and have to determine whether the company has implemented appropriate technical and organizational measures as required by Article 32 of the GDPR. Which of the following would be the most important to consider when trying to determine this?
How security measures might evolve in the future
Which security measures are endorsed by a majority of experts.
How the public perceives what constitutes adequate security measures
Which kinds of security measures your company has employed in the past
It a company receives an anonymous email demanding ransom for the stolen personal data of its clients, what must the company do next, per GDPR requirements'3
Notify the police and Tile a criminal complaint about the incident
Start an investigation to understand the incident's possible scope, duration and nature
Send a notification to the competent supervisory authority describing the incident.
Send an email about the incident to all clients and ask them to change their passwords
If two controllers act as joint controllers pursuant to Article 26 of the GDPR, which of the following may NOT be validly determined by said controllers?
The definition of a central contact point for data subjects.
The rules regarding the exercising of data subjects' rights.
The rules to provide information to data subjects in Articles 13 and 14.
The non-disclosure of the essence of their arrangement to data subjects
What is the main task of the European Data Protection Board?
To assess adequacy of data protection in third countries
To ensure consistent application of the GDPR.
To proactively prevent disputes between national supervisory authorities.
To publish guidelines tor data subjects on how to property enforce their rights
SCENARIO
Please use the following to answer the next question:
Anna and Frank both work at Granchester University. Anna is a lawyer responsible for data protection, while Frank is a lecturer in the engineering department. The University maintains a number of types of records:
Student records, including names, student numbers, home addresses, pre-university information, university attendance and performance records, details of special educational needs and financial information.
Staff records, including autobiographical materials (such as curricula, professional contact files, student evaluations and other relevant teaching files).
Alumni records, including birthplaces, years of birth, dates of matriculation and conferrals of degrees. These records are available to former students after registering through Granchester's Alumni portal. Department for Education records, showing how certain demographic groups (such as first-generation students) could be expected, on average, to progress. These records do not contain names or identification numbers.
Under their security policy, the University encrypts all of its personal data records in transit and at rest.
In order to improve his teaching, Frank wants to investigate how his engineering students perform in relational to Department for Education expectations. He has attended one of Anna's data protection training courses and knows that he should use no more personal data than necessary to accomplish his goal. He creates a program that will only export some student data: previous schools attended, grades originally obtained, grades currently obtained and first time university attended. He wants to keep the records at the individual student level. Mindful of Anna's training, Frank runs the student numbers through an algorithm to transform them into different reference numbers. He uses the same algorithm on each occasion so that he can update each record over time.
One of Anna's tasks is to complete the record of processing activities, as required by the GDPR. After receiving her email reminder, as required by the GDPR. After receiving her email reminder, Frank informs Anna about his performance database.
Ann explains to Frank that, as well as minimizing personal data, the University has to check that this new use of existing data is permissible. She also suspects that, under the GDPR, a risk analysis may have to be carried out before the data processing can take place. Anna arranges to discuss this further with Frank after she has done some additional research.
Frank wants to be able to work on his analysis in his spare time, so he transfers it to his home laptop (which is not encrypted). Unfortunately, when Frank takes the laptop into the University he loses it on the train. Frank has to see Anna that day to discuss compatible processing. He knows that he needs to report security incidents, so he decides to tell Anna about his lost laptop at the same time.
Anna will find that a risk analysis is NOT necessary in this situation as long as?
The data subjects are no longer current students of Frank's
The processing will not negatively affect the rights of the data subjects
The algorithms that Frank uses for the processing are technologically sound
The data subjects gave their unambiguous consent for the original processing
Under Article 58 of the GDPR, which of the following describes a power of supervisory authorities in European Union (EU) member states?
The ability to enact new laws by executive order.
The right to access data for investigative purposes.
The discretion to carry out goals of elected officials within the member state.
The authority to select penalties when a controller is found guilty in a court of law.
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