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CIPM Exam Dumps - IAPP Certified Information Privacy Manager Questions and Answers

Question # 54

SCENARIO

Please use the following to answer the next QUESTION:

As they company’s new chief executive officer, Thomas Goddard wants to be known as a leader in data protection. Goddard recently served as the chief financial officer of Hoopy.com, a pioneer in online video viewing with millions of users around the world. Unfortunately, Hoopy is infamous within privacy protection circles for its ethically Questionable practices, including unauthorized sales of personal data to marketers. Hoopy also was the target of credit card data theft that made headlines around the world, as at least two million credit card numbers were thought to have been pilfered despite the company’s claims that “appropriate” data protection safeguards were in place. The scandal affected the company’s business as competitors were quick to market an increased level of protection while offering similar entertainment and media content. Within three weeks after the scandal broke, Hoopy founder and CEO Maxwell Martin, Goddard’s mentor, was forced to step down.

Goddard, however, seems to have landed on his feet, securing the CEO position at your company, Medialite, which is just emerging from its start-up phase. He sold the company’s board and investors on his vision of Medialite building its brand partly on the basis of industry-leading data protection standards and procedures.

He may have been a key part of a lapsed or even rogue organization in matters of privacy but now he claims to be reformed and a true believer in privacy protection. In his first week on the job, he calls you into his office and explains that your primary work responsibility is to bring his vision for privacy to life. But you also detect some reservations. “We want Medialite to have absolutely the highest standards,” he says. “In fact, I want us to be able to say that we are the clear industry leader in privacy and data protection. However, I also need to be a responsible steward of the company’s finances. So, while I want the best solutions across the board, they also need to be cost effective.”

You are told to report back in a week’s time with your recommendations. Charged with this ambiguous mission, you depart the executive suite, already considering your next steps.

You give a presentation to your CEO about privacy program maturity. What does it mean to have a “managed” privacy program, according to the AICPA/CICA Privacy Maturity Model?

Options:

A.

Procedures or processes exist, however they are not fully documented and do not cover all relevant aspects.

B.

Procedures and processes are fully documented and implemented, and cover all relevant aspects.

C.

Reviews are conducted to assess the effectiveness of the controls in place.

D.

Regular review and feedback are used to ensure continuous improvement toward optimization of the given process.

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Question # 55

If your organization has a recurring issue with colleagues not reporting personal data breaches, all of the following are advisable to do EXCEPT?

Options:

A.

Carry out a root cause analysis on each breach to understand why the incident happened.

B.

Communicate to everyone that breaches must be reported and how they should be reported.

C.

Provide role-specific training to areas where breaches are happening so they are more aware.

D.

Distribute a phishing exercise to all employees to test their ability to recognize a threat attempt.

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Question # 56

Which of the following is NOT typically a function of a Privacy Officer?

Options:

A.

Managing an organization's information security infrastructure.

B.

Serving as an interdepartmental liaison for privacy concerns.

C.

Monitoring an organization's compliance with privacy laws.

D.

Responding to information access requests from the public.

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Question # 57

SCENARIO

Please use the following to answer the next QUESTION:

Amira is thrilled about the sudden expansion of NatGen. As the joint Chief Executive Officer (CEO) with her long-time business partner Sadie, Amira has watched the company grow into a major competitor in the green energy market. The current line of products includes wind turbines, solar energy panels, and equipment for geothermal systems. A talented team of developers means that NatGen's line of products will only continue to grow.

With the expansion, Amira and Sadie have received advice from new senior staff members brought on to help manage the company's growth. One recent suggestion has been to combine the legal and security functions of the company to ensure observance of privacy laws and the company's own privacy policy. This sounds overly complicated to Amira, who wants departments to be able to use, collect, store, and dispose of customer data in ways that will best suit their needs. She does not want administrative oversight and complex structuring to get in the way of people doing innovative work.

Sadie has a similar outlook. The new Chief Information Officer (CIO) has proposed what Sadie believes is an unnecessarily long timetable for designing a new privacy program. She has assured him that NatGen will use the best possible equipment for electronic storage of customer and employee data. She simply needs a list of equipment and an estimate of its cost. But the CIO insists that many issues are necessary to consider before the company gets to that stage.

Regardless, Sadie and Amira insist on giving employees space to do their jobs. Both CEOs want to entrust the monitoring of employee policy compliance to low-level managers. Amira and Sadie believe these managers can adjust the company privacy policy according to what works best for their particular departments. NatGen's CEOs know that flexible interpretations of the privacy policy in the name of promoting green energy would be highly unlikely to raise any concerns with their customer base, as long as the data is always used in course of normal business activities.

Perhaps what has been most perplexing to Sadie and Amira has been the CIO's recommendation to institute a privacy compliance hotline. Sadie and Amira have relented on this point, but they hope to compromise by allowing employees to take turns handling reports of privacy policy violations. The implementation will be easy because the employees need no special preparation. They will simply have to document any concerns they hear.

Sadie and Amira are aware that it will be challenging to stay true to their principles and guard against corporate culture strangling creativity and employee morale. They hope that all senior staff will see the benefit of trying a unique approach.

What Data Lifecycle Management (DLM) principle should the company follow if they end up allowing departments to interpret the privacy policy differently?

Options:

A.

Prove the authenticity of the company's records.

B.

Arrange for official credentials for staff members.

C.

Adequately document reasons for inconsistencies.

D.

Create categories to reflect degrees of data importance.

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Question # 58

Under the GDPR, what obligation does a data controller or processor have after appointing a data protection officer (DPO)?

Options:

A.

To submit for approval to the DPO a code of conduct to govern organizational practices and demonstrate compliance with data protection principles.

B.

To provide resources necessary to carry out the defined tasks of the DPO and to maintain their expert knowledge.

C.

To ensure that the DPO acts as the sole point of contact for individuals' questions about their personal data.

D.

To ensure that the DPO receives sufficient instructions regarding the exercise of their defined tasks.

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Question # 59

Which of the following information must be provided by the data controller when complying with GDPR “right to be informed” requirements?

Options:

A.

The purpose of personal data processing.

B.

The data subject’s right to withdraw consent

C.

The contact details of the Data Protection Officer (DPO).

D.

The name of any organizations with whom personal data was shared.

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Question # 60

(All of the following are the responsibilities of the privacy professional EXCEPT?)

Options:

A.

Monitoring compliance with data protection laws and regulations.

B.

Conducting privacy impact assessments (PIA).

C.

Defining the organization's data strategy.

D.

Ensuring privacy audits are regularly conducted.

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Question # 61

SCENARIO

Please use the following to answer the next QUESTION:

John is the new privacy officer at the prestigious international law firm – A&M LLP. A&M LLP is very proud of its reputation in the practice areas of Trusts & Estates and Merger & Acquisition in both U.S. and Europe.

During lunch with a colleague from the Information Technology department, John heard that the Head of IT, Derrick, is about to outsource the firm's email continuity service to their existing email security vendor – MessageSafe. Being successful as an email hygiene vendor, MessageSafe is expanding its business by leasing cloud infrastructure from Cloud Inc. to host email continuity service for A&M LLP.

John is very concerned about this initiative. He recalled that MessageSafe was in the news six months ago due to a security breach. Immediately, John did a quick research of MessageSafe's previous breach and learned that the breach was caused by an unintentional mistake by an IT administrator. He scheduled a meeting with Derrick to address his concerns.

At the meeting, Derrick emphasized that email is the primary method for the firm's lawyers to communicate with clients, thus it is critical to have the email continuity service to avoid any possible email downtime. Derrick has been using the anti-spam service provided by MessageSafe for five years and is very happy with the quality of service provided by MessageSafe. In addition to the significant discount offered by MessageSafe, Derrick emphasized that he can also speed up the onboarding process since the firm already has a service contract in place with MessageSafe. The existing on-premises email continuity solution is about to reach its end of life very soon and he doesn't have the time or resource to look for another solution. Furthermore, the off- premises email continuity service will only be turned on when the email service at A&M LLP's primary and secondary data centers are both down, and the email messages stored at MessageSafe site for continuity service will be automatically deleted after 30 days.

Which of the following is NOT an obligation of MessageSafe as the email continuity service provider for A&M LLP?

Options:

A.

Privacy compliance.

B.

Security commitment.

C.

Certifications to relevant frameworks.

D.

Data breach notification to A&M LLP.

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Question # 62

What is the main function of the Asia-Pacific Economic Cooperation Privacy Framework?

Options:

A.

Enabling regional data transfers.

B.

Protecting data from parties outside the region.

C.

Establishing legal requirements for privacy protection in the region.

D.

Marketing privacy protection technologies developed in the region.

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Question # 63

Which of the following best demonstrates the effectiveness of a firm’s privacy incident response process?

Options:

A.

The decrease of security breaches

B.

The decrease of notifiable breaches

C.

The increase of privacy incidents reported by users

D.

The decrease of mean time to resolve privacy incidents

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Exam Code: CIPM
Exam Name: Certified Information Privacy Manager (CIPM)
Last Update: Mar 5, 2026
Questions: 274
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