What would be an example of an organization transferring the risks associated with a data breach?
C
Explanation:
Risk transfer involves shifting the potential negative consequences of a risk to a third party. By
purchasing insurance, an organization transfers the financial risk associated with a data breach to the
insurance company. This is a common practice to mitigate the impact of data breaches.
Reference:
IAPP CIPT Study Guide: Risk Management and Data Breaches.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Risk Management.
Which of the following is considered a client-side IT risk?
C
Explanation:
Client-side IT risks refer to vulnerabilities or threats that originate from the end-user's side. When an
employee stores personal information on a company laptop, it poses a security risk as this data can
be exposed through loss, theft, or improper handling of the device.
Reference:
IAPP CIPT Study Guide: IT Risks and Mitigation.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Client-Side Risks.
SCENARIO
Carol was a U.S.-based glassmaker who sold her work at art festivals. She kept things simple by only
accepting cash and personal checks.
As business grew, Carol couldn't keep up with demand, and traveling to festivals became
burdensome. Carol opened a small boutique and hired Sam to run it while she worked in the studio.
Sam was a natural salesperson, and business doubled. Carol told Sam, “I don't know what you are
doing, but keep doing it!"
But months later, the gift shop was in chaos. Carol realized that Sam needed help so she hired Jane,
who had business expertise and could handle the back-office tasks. Sam would continue to focus on
sales. Carol gave Jane a few weeks to get acquainted with the artisan craft business, and then
scheduled a meeting for the three of them to discuss Jane's first impressions.
At the meeting, Carol could not wait to hear Jane's thoughts, but she was unprepared for what Jane
had to say. “Carol, I know that he doesn't realize it, but some of Sam’s efforts to increase sales have
put you in a vulnerable position. You are not protecting customers’ personal information like you
should.”
Sam said, “I am protecting our information. I keep it in the safe with our bank deposit. It's only a list
of customers’ names, addresses and phone numbers that I get from their checks before I deposit
them. I contact them when you finish a piece that I think they would like. That's the only information
I have! The only other thing I do is post photos and information about your work on the photo
sharing site that I use with family and friends. I provide my email address and people send me their
information if they want to see more of your work. Posting online really helps sales, Carol. In fact, the
only complaint I hear is about having to come into the shop to make a purchase.”
Carol replied, “Jane, that doesn’t sound so bad. Could you just fix things and help us to post even
more online?"
‘I can," said Jane. “But it's not quite that simple. I need to set up a new program to make sure that
we follow the best practices in data management. And I am concerned for our customers. They
should be able to manage how we use their personal information. We also should develop a social
media strategy.”
Sam and Jane worked hard during the following year. One of the decisions they made was to contract
with an outside vendor to manage online sales. At the end of the year, Carol shared some exciting
news. “Sam and Jane, you have done such a great job that one of the biggest names in the glass
business wants to buy us out! And Jane, they want to talk to you about merging all of our customer
and vendor information with theirs beforehand."
What type of principles would be the best guide for Jane's ideas regarding a new data management
program?
D
Explanation:
Fair Information Practice Principles (FIPPs) are a set of guidelines that govern the collection and
handling of personal data to ensure privacy and data protection. Jane's ideas regarding a new data
management program would be best guided by FIPPs, which emphasize transparency, data
minimization, purpose specification, and security, among other principles.
Reference:
IAPP CIPT Study Guide: Data Management and Fair Information Practices.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Fair Information
Practice Principles.
SCENARIO
Carol was a U.S.-based glassmaker who sold her work at art festivals. She kept things simple by only
accepting cash and personal checks.
As business grew, Carol couldn't keep up with demand, and traveling to festivals became
burdensome. Carol opened a small boutique and hired Sam to run it while she worked in the studio.
Sam was a natural salesperson, and business doubled. Carol told Sam, “I don't know what you are
doing, but keep doing it!"
But months later, the gift shop was in chaos. Carol realized that Sam needed help so she hired Jane,
who had business expertise and could handle the back-office tasks. Sam would continue to focus on
sales. Carol gave Jane a few weeks to get acquainted with the artisan craft business, and then
scheduled a meeting for the three of them to discuss Jane's first impressions.
At the meeting, Carol could not wait to hear Jane's thoughts, but she was unprepared for what Jane
had to say. “Carol, I know that he doesn't realize it, but some of Sam’s efforts to increase sales have
put you in a vulnerable position. You are not protecting customers’ personal information like you
should.”
Sam said, “I am protecting our information. I keep it in the safe with our bank deposit. It's only a list
of customers’ names, addresses and phone numbers that I get from their checks before I deposit
them. I contact them when you finish a piece that I think they would like. That's the only information
I have! The only other thing I do is post photos and information about your work on the photo
sharing site that I use with family and friends. I provide my email address and people send me their
information if they want to see more of your work. Posting online really helps sales, Carol. In fact, the
only complaint I hear is about having to come into the shop to make a purchase.”
Carol replied, “Jane, that doesn’t sound so bad. Could you just fix things and help us to post even
more online?"
‘I can," said Jane. “But it's not quite that simple. I need to set up a new program to make sure that
we follow the best practices in data management. And I am concerned for our customers. They
should be able to manage how we use their personal information. We also should develop a social
media strategy.”
Sam and Jane worked hard during the following year. One of the decisions they made was to contract
with an outside vendor to manage online sales. At the end of the year, Carol shared some exciting
news. “Sam and Jane, you have done such a great job that one of the biggest names in the glass
business wants to buy us out! And Jane, they want to talk to you about merging all of our customer
and vendor information with theirs beforehand."
Which regulator has jurisdiction over the shop's data management practices?
A
Explanation:
The Federal Trade Commission (FTC) is responsible for protecting consumers in the U.S. by
preventing fraudulent, deceptive, and unfair business practices. It has jurisdiction over commercial
data privacy and security practices, including those of Carol’s shop. The FTC enforces data protection
and privacy standards to ensure consumer information is handled appropriately.
Reference:
IAPP CIPT Study Guide: Regulatory Environment.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on U.S. Privacy Laws and
Regulations.
SCENARIO
Carol was a U.S.-based glassmaker who sold her work at art festivals. She kept things simple by only
accepting cash and personal checks.
As business grew, Carol couldn't keep up with demand, and traveling to festivals became
burdensome. Carol opened a small boutique and hired Sam to run it while she worked in the studio.
Sam was a natural salesperson, and business doubled. Carol told Sam, “I don't know what you are
doing, but keep doing it!"
But months later, the gift shop was in chaos. Carol realized that Sam needed help so she hired Jane,
who had business expertise and could handle the back-office tasks. Sam would continue to focus on
sales. Carol gave Jane a few weeks to get acquainted with the artisan craft business, and then
scheduled a meeting for the three of them to discuss Jane's first impressions.
At the meeting, Carol could not wait to hear Jane's thoughts, but she was unprepared for what Jane
had to say. “Carol, I know that he doesn't realize it, but some of Sam’s efforts to increase sales have
put you in a vulnerable position. You are not protecting customers’ personal information like you
should.”
Sam said, “I am protecting our information. I keep it in the safe with our bank deposit. It's only a list
of customers’ names, addresses and phone numbers that I get from their checks before I deposit
them. I contact them when you finish a piece that I think they would like. That's the only information
I have! The only other thing I do is post photos and information about your work on the photo
sharing site that I use with family and friends. I provide my email address and people send me their
information if they want to see more of your work. Posting online really helps sales, Carol. In fact, the
only complaint I hear is about having to come into the shop to make a purchase.”
Carol replied, “Jane, that doesn’t sound so bad. Could you just fix things and help us to post even
more online?"
‘I can," said Jane. “But it's not quite that simple. I need to set up a new program to make sure that
we follow the best practices in data management. And I am concerned for our customers. They
should be able to manage how we use their personal information. We also should develop a social
media strategy.”
Sam and Jane worked hard during the following year. One of the decisions they made was to contract
with an outside vendor to manage online sales. At the end of the year, Carol shared some exciting
news. “Sam and Jane, you have done such a great job that one of the biggest names in the glass
business wants to buy us out! And Jane, they want to talk to you about merging all of our customer
and vendor information with theirs beforehand."
When initially collecting personal information from customers, what should Jane be guided by?
C
Explanation:
When collecting personal information from customers, Jane should be guided by data minimization
principles. These principles emphasize that only the minimum necessary amount of personal data
should be collected for any given purpose. This aligns with best practices in data management to
ensure that organizations do not hold more personal data than necessary, thus reducing the risk of
data breaches and enhancing privacy protection. According to the IAPP, data minimization is a
foundational principle that helps mitigate privacy risks by limiting the amount and types of data
collected, processed, and stored.
A key principle of an effective privacy policy is that it should be?
A
Explanation:
A key principle of an effective privacy policy is that it should be written in enough detail to cover the
majority of likely scenarios. This ensures that the policy provides clear guidance on how personal
data is to be handled, making it easier for employees to understand and follow, and for customers to
know how their data is being used. According to the IAPP, privacy policies need to be sufficiently
detailed to address the range of situations that the organization may encounter, which helps in
maintaining compliance with privacy laws and regulations.
What was the first privacy framework to be developed?
A
Explanation:
The first privacy framework to be developed was the OECD Privacy Principles. These principles were
introduced by the Organization for Economic Co-operation and Development (OECD) in 1980 and laid
the groundwork for many subsequent privacy laws and regulations. The OECD Privacy Principles
include guidelines on data collection, data quality, purpose specification, use limitation, security
safeguards, openness, individual participation, and accountability. These principles have had a
significant influence on the development of privacy practices worldwide (IAPP, Certified Information
Privacy Technologist (CIPT) materials).
Which of the following became a foundation for privacy principles and practices of countries and
organizations across the globe?
D
Explanation:
The OECD Privacy Principles became a foundation for privacy principles and practices of countries
and organizations across the globe. Established in 1980, these principles provided a comprehensive
framework that has influenced many national and international privacy laws. The OECD Privacy
Principles focus on critical aspects of data protection, such as collection limitation, data quality,
purpose specification, use limitation, security safeguards, openness, individual participation, and
accountability, forming a basis for global privacy standards (IAPP, Certified Information Privacy
Technologist (CIPT) materials).
SCENARIO
Kyle is a new security compliance manager who will be responsible for coordinating and executing
controls to ensure compliance with the company's information security policy and industry
standards. Kyle is also new to the company, where collaboration is a core value. On his first day of
new-hire orientation, Kyle's schedule included participating in meetings and observing work in the IT
and compliance departments.
Kyle spent the morning in the IT department, where the CIO welcomed him and explained that her
department was responsible for IT governance. The CIO and Kyle engaged in a conversation about
the importance of identifying meaningful IT governance metrics. Following their conversation, the
CIO introduced Kyle to Ted and Barney. Ted is implementing a plan to encrypt data at the
transportation level of the organization's wireless network. Kyle would need to get up to speed on
the project and suggest ways to monitor effectiveness once the implementation was complete.
Barney explained that his short-term goals are to establish rules governing where data can be placed
and to minimize the use of offline data storage.
Kyle spent the afternoon with Jill, a compliance specialist, and learned that she was exploring an
initiative for a compliance program to follow self-regulatory privacy principles. Thanks to a recent
internship, Kyle had some experience in this area and knew where Jill could find some support. Jill
also shared results of the company’s privacy risk assessment, noting that the secondary use of
personal information was considered a high risk.
By the end of the day, Kyle was very excited about his new job and his new company. In fact, he
learned about an open position for someone with strong qualifications and experience with access
privileges, project standards board approval processes, and application-level obligations, and
couldn’t wait to recommend his friend Ben who would be perfect for the job.
Ted's implementation is most likely a response to what incident?
D
Explanation:
Encrypting data at the transportation level of the organization's wireless network is a measure
typically implemented to protect data in transit from being intercepted by unauthorized parties. This
type of encryption helps to secure communication channels, such as teleconferences, from
eavesdropping or interception by competitors.
Reference:
IAPP CIPT Study Guide: Data Protection and Encryption.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Network Security and
Encryption.
SCENARIO
Kyle is a new security compliance manager who will be responsible for coordinating and executing
controls to ensure compliance with the company's information security policy and industry
standards. Kyle is also new to the company, where collaboration is a core value. On his first day of
new-hire orientation, Kyle's schedule included participating in meetings and observing work in the IT
and compliance departments.
Kyle spent the morning in the IT department, where the CIO welcomed him and explained that her
department was responsible for IT governance. The CIO and Kyle engaged in a conversation about
the importance of identifying meaningful IT governance metrics. Following their conversation, the
CIO introduced Kyle to Ted and Barney. Ted is implementing a plan to encrypt data at the
transportation level of the organization's wireless network. Kyle would need to get up to speed on
the project and suggest ways to monitor effectiveness once the implementation was complete.
Barney explained that his short-term goals are to establish rules governing where data can be placed
and to minimize the use of offline data storage.
Kyle spent the afternoon with Jill, a compliance specialist, and learned that she was exploring an
initiative for a compliance program to follow self-regulatory privacy principles. Thanks to a recent
internship, Kyle had some experience in this area and knew where Jill could find some support. Jill
also shared results of the company’s privacy risk assessment, noting that the secondary use of
personal information was considered a high risk.
By the end of the day, Kyle was very excited about his new job and his new company. In fact, he
learned about an open position for someone with strong qualifications and experience with access
privileges, project standards board approval processes, and application-level obligations, and
couldn’t wait to recommend his friend Ben who would be perfect for the job.
Which of the following should Kyle recommend to Jill as the best source of support for her initiative?
C
Explanation:
Industry groups are an excellent source of support for initiatives involving self-regulatory privacy
principles because they offer best practices, guidelines, and resources specific to the industry. These
groups often provide frameworks and standards that help organizations comply with privacy
regulations while also offering networking opportunities with other professionals facing similar
challenges.
Reference:
IAPP CIPT Study Guide: Privacy Frameworks and Self-Regulation.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Industry Standards and
Best Practices.
SCENARIO
Kyle is a new security compliance manager who will be responsible for coordinating and executing
controls to ensure compliance with the company's information security policy and industry
standards. Kyle is also new to the company, where collaboration is a core value. On his first day of
new-hire orientation, Kyle's schedule included participating in meetings and observing work in the IT
and compliance departments.
Kyle spent the morning in the IT department, where the CIO welcomed him and explained that her
department was responsible for IT governance. The CIO and Kyle engaged in a conversation about
the importance of identifying meaningful IT governance metrics. Following their conversation, the
CIO introduced Kyle to Ted and Barney. Ted is implementing a plan to encrypt data at the
transportation level of the organization's wireless network. Kyle would need to get up to speed on
the project and suggest ways to monitor effectiveness once the implementation was complete.
Barney explained that his short-term goals are to establish rules governing where data can be placed
and to minimize the use of offline data storage.
Kyle spent the afternoon with Jill, a compliance specialist, and learned that she was exploring an
initiative for a compliance program to follow self-regulatory privacy principles. Thanks to a recent
internship, Kyle had some experience in this area and knew where Jill could find some support. Jill
also shared results of the company’s privacy risk assessment, noting that the secondary use of
personal information was considered a high risk.
By the end of the day, Kyle was very excited about his new job and his new company. In fact, he
learned about an open position for someone with strong qualifications and experience with access
privileges, project standards board approval processes, and application-level obligations, and
couldn’t wait to recommend his friend Ben who would be perfect for the job.
Which data practice is Barney most likely focused on improving?
C
Explanation:
Barney’s focus on establishing rules governing where data can be placed and minimizing the use of
offline data storage indicates a concern with data retention practices. Proper data retention policies
ensure that data is stored appropriately and retained for the necessary duration to meet regulatory
and business requirements, reducing risks associated with excessive or improperly stored data.
Reference:
IAPP CIPT Study Guide: Data Lifecycle Management.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Data Retention and
Storage.
What is the main function of a breach response center?
B
Explanation:
The main function of a breach response center is to address privacy incidents by managing the
response to data breaches and other security incidents. This includes identifying, containing, and
mitigating the impact of breaches, as well as coordinating communication with affected parties and
regulatory bodies.
Reference:
IAPP CIPT Study Guide: Incident Response and Breach Management.
IAPP Certified Information Privacy Technologist (CIPT) Handbook: Section on Incident Management
and Breach Response.
Which is NOT a suitable action to apply to data when the retention period ends?
D
Explanation:
When the retention period for data ends, suitable actions typically include deletion, de-
identification, or aggregation to ensure that the data is no longer in a form that can be used to
identify individuals or is completely removed from systems. Retagging is not a suitable action as it
implies merely re-labeling or reclassifying the data rather than properly handling it according to data
retention policies. Retagging does not mitigate privacy risks and may result in non-compliance with
data protection regulations (IAPP, Certified Information Privacy Technologist (CIPT) materials).
What is the distinguishing feature of asymmetric encryption?
C
Explanation:
The distinguishing feature of asymmetric encryption is that it uses distinct keys for encryption and
decryption. Specifically, it involves a public key for encryption and a private key for decryption. This
dual-key mechanism ensures that even if the encryption key (public key) is widely distributed, the
decryption key (private key) remains secure and confidential. This is in contrast to symmetric
encryption, which uses the same key for both encryption and decryption (IAPP, Certified Information
Privacy Technologist (CIPT) materials).
What is the most important requirement to fulfill when transferring data out of an organization?
C
Explanation:
The most important requirement when transferring data out of an organization is ensuring that the
commitments made to the data owner are followed. This includes adhering to any privacy policies,
consent agreements, and legal obligations regarding how the data should be handled, protected, and
used by the receiving party. Fulfilling these commitments helps maintain trust and compliance with
data protection laws (IAPP, Certified Information Privacy Technologist (CIPT) materials).