Pass CIPM Exam Latest Practice Questions Updated on Jan 18, 2024 [Q64-Q80]

Pass CIPM Exam Latest Practice Questions Updated on Jan 18, 2024

IAPP CIPM Study Guide Archives 

Introduction to IAPP CIPM: Certified Information Privacy Manager Exam

IAPP has introduced Certified Information Privacy Professionals (CIPP) certificate for privacy professionals. The CIPP is the global standard for privacy professionals who manage, handle and access data. Security professionals get a deep insight about security considerations in the European context through the European edition of CIPP which is IAPP CIPM Certified Information Privacy Professional/United States CIPM.

IAPP CIPM: Certified Information Privacy Manager Exam is a certification exam that is conducted by IAPP to validates candidate knowledge and identifies technology experts that know how to build data privacy architecture from its foundation in the IT industry. The Certified Information Privacy Professional (CIPP) helps organizations around the world support compliance and risk mitigation practices, and arms practitioners with the insight needed to add more value to their businesses.

After passing this exam with the help IAPP CIPM practice exams, candidates get a certificate from IAPP that helps them to demonstrate their proficiency in data privacy to their clients and employers.

The CIPM certification exam is designed to assess the knowledge and skills of privacy professionals in managing privacy programs. CIPM exam covers a range of topics including privacy program governance, privacy program operational lifecycle, privacy regulations and standards, privacy risk assessment, and privacy program management. CIPM exam consists of 90 multiple-choice questions, and candidates are given 2.5 hours to complete it. To pass the exam, candidates must score at least 300 out of 500 points. The CIPM certification is valid for two years, and candidates are required to earn continuing education credits to maintain their certification.

 

NEW QUESTION # 64
SCENARIO
Please use the following to answer the next QUESTION:
Edufox has hosted an annual convention of users of its famous e-learning software platform, and over time, it has become a grand event. It fills one of the large downtown conference hotels and overflows into the others, with several thousand attendees enjoying three days of presentations, panel discussions and networking. The convention is the centerpiece of the company's product rollout schedule and a great training opportunity for current users. The sales force also encourages prospective clients to attend to get a better sense of the ways in which the system can be customized to meet diverse needs and understand that when they buy into this system, they are joining a community that feels like family.
This year's conference is only three weeks away, and you have just heard news of a new initiative supporting it: a smartphone app for attendees. The app will support late registration, highlight the featured presentations and provide a mobile version of the conference program. It also links to a restaurant reservation system with the best cuisine in the areas featured. "It's going to be great," the developer, Deidre Hoffman, tells you, "if, that is, we actually get it working!" She laughs nervously but explains that because of the tight time frame she'd been given to build the app, she outsourced the job to a local firm. "It's just three young people," she says, "but they do great work." She describes some of the other apps they have built. When asked how they were selected for this job, Deidre shrugs. "They do good work, so I chose them." Deidre is a terrific employee with a strong track record. That's why she's been charged to deliver this rushed project. You're sure she has the best interests of the company at heart, and you don't doubt that she's under pressure to meet a deadline that cannot be pushed back. However, you have concerns about the app's handling of personal data and its security safeguards. Over lunch in the break room, you start to talk to her about it, but she quickly tries to reassure you, "I'm sure with your help we can fix any security issues if we have to, but I doubt there'll be any. These people build apps for a living, and they know what they're doing.
You worry too much, but that's why you're so good at your job!"
What safeguard can most efficiently ensure that privacy protection is a dimension of relationships with vendors?

• A. Do business only with vendors who are members of privacy trade associations.
• B. Include appropriate language about privacy protection in vendor contracts.
• C. Perform a privacy audit on any vendor under consideration.
• D. Require that a person trained in privacy protection be part of all vendor selection teams.

Answer: D

NEW QUESTION # 65
SCENARIO
Please use the following to answer the next QUESTION:
For 15 years, Albert has worked at Treasure Box - a mail order company in the United States (U.S.) that used to sell decorative candles around the world, but has recently decided to limit its shipments to customers in the 48 contiguous states. Despite his years of experience, Albert is often overlooked for managerial positions. His frustration about not being promoted, coupled with his recent interest in issues of privacy protection, have motivated Albert to be an agent of positive change.
He will soon interview for a newly advertised position, and during the interview, Albert plans on making executives aware of lapses in the company's privacy program. He feels certain he will be rewarded with a promotion for preventing negative consequences resulting from the company's outdated policies and procedures.
For example, Albert has learned about the AICPA (American Institute of Certified Public Accountans)/CICA (Canadian Institute of Chartered Accountants) Privacy Maturity Model (PMM). Albert thinks the model is a useful way to measure Treasure Box's ability to protect personal dat a. Albert has noticed that Treasure Box fails to meet the requirements of the highest level of maturity of this model; at his interview, Albert will pledge to assist the company with meeting this level in order to provide customers with the most rigorous security available.
Albert does want to show a positive outlook during his interview. He intends to praise the company's commitment to the security of customer and employee personal data against external threats. However, Albert worries about the high turnover rate within the company, particularly in the area of direct phone marketing. He sees many unfamiliar faces every day who are hired to do the marketing, and he often hears complaints in the lunch room regarding long hours and low pay, as well as what seems to be flagrant disregard for company procedures.
In addition, Treasure Box has had two recent security incidents. The company has responded to the incidents with internal audits and updates to security safeguards. However, profits still seem to be affected and anecdotal evidence indicates that many people still harbor mistrust. Albert wants to help the company recover. He knows there is at least one incident the public in unaware of, although Albert does not know the details. He believes the company's insistence on keeping the incident a secret could be a further detriment to its reputation. One further way that Albert wants to help Treasure Box regain its stature is by creating a toll-free number for customers, as well as a more efficient procedure for responding to customer concerns by postal mail.
In addition to his suggestions for improvement, Albert believes that his knowledge of the company's recent business maneuvers will also impress the interviewers. For example, Albert is aware of the company's intention to acquire a medical supply company in the coming weeks.
With his forward thinking, Albert hopes to convince the managers who will be interviewing him that he is right for the job.
The company may start to earn back the trust of its customer base by following Albert's suggestion regarding which handling procedure?

• A. Access
• B. Correction
• C. Escalation
• D. Data Integrity

Answer: D

NEW QUESTION # 66
A Human Resources director at a company reported that a laptop containing employee payroll data was lost on the train. Which action should the company take IMMEDIATELY?

• A. Report the theft to law enforcement
• B. Report the theft to the senior management
• C. Perform a multi-factor risk analysis
• D. Wipe the hard drive remotely

Answer: C

NEW QUESTION # 67
What is the function of the privacy operational life cycle?

• A. It ensures that outdated privacy policies are retired on a set schedule
• B. It allows the organization to respond to ever-changing privacy demands
• C. It establishes initial plans for privacy protection and implementation
• D. It allows privacy policies to mature to a fixed form

Answer: C

Explanation:
Explanation/Reference: https://www.bdo.com/blogs/nonprofit-standard/august-2018/guide-to-implementing-a-holistic- privacy-program

NEW QUESTION # 68
Which of the following controls does the PCI DSS framework NOT require?

• A. Implement strong access control measures.
• B. Implement strong asset control protocols.
• C. Maintain an information security policy.
• D. Maintain a vulnerability management program.

Answer: B

Explanation:
Explanation
The PCI DSS framework does not require implementing strong asset control protocols. Asset control protocols are policies and procedures that govern how an organization manages its physical and digital assets, such as inventory, equipment, software, data, etc. Asset control protocols may include aspects such as identification, classification, valuation, tracking, maintenance, disposal, etc. Asset control protocols are important for ensuring the security and integrity of an organization's assets, but they are not part of the PCI DSS framework.

NEW QUESTION # 69
All of the following changes will likely trigger a data inventory update EXCEPT?

• A. Outsourcing the Customer Relationship Management (CRM) function
• B. Acquisition of a new subsidiary
• C. Passage of new a privacy regulation
• D. Onboarding of a new vendor

Answer: A

NEW QUESTION # 70
In regards to the collection of personal data conducted by an organization, what must the data subject be allowed to do?

• A. Challenge the authenticity of the personal data and have it corrected if needed
• B. Set a time-limit as to how long the personal data may be stored by the organization
• C. Evaluate the qualifications of a third-party processor before any data is transferred to that processor
• D. Obtain a guarantee of prompt notification in instances involving unauthorized access of the data

Answer: B

NEW QUESTION # 71
There are different forms of monitoring available for organizations to consider when aligning with their privacy program goals.
Which of the following forms of monitoring is best described as 'auditing'?

• A. Evaluating operations, systems, and processes.
• B. Assisting in the completion of attesting reporting for SOC2, ISO, or BS7799.
• C. Tracking, reporting and documenting complaints from all sources.
• D. Ensuring third parties have appropriate security and privacy requirements in place.

Answer: A

Explanation:
Explanation
Evaluating operations, systems, and processes is best described as 'auditing', as it involves conducting a systematic and independent examination of the organization's privacy practices and controls to verify their effectiveness and compliance. The other options are more related to other forms of monitoring, such as complaint handling, reporting, and third-party oversight. References: CIPM Body of Knowledge, Domain III:
Privacy Program Management Activities, Task 5: Monitor privacy program performance.

NEW QUESTION # 72
SCENARIO
Please use the following to answer the next QUESTION:
Richard McAdams recently graduated law school and decided to return to the small town of Lexington, Virginia to help run his aging grandfather's law practice. The elder McAdams desired a limited, lighter role in the practice, with the hope that his grandson would eventually take over when he fully retires. In addition to hiring Richard, Mr. McAdams employs two paralegals, an administrative assistant, and a part-time IT specialist who handles all of their basic networking needs. He plans to hire more employees once Richard gets settled and assesses the office's strategies for growth.
Immediately upon arrival, Richard was amazed at the amount of work that needed to done in order to modernize the office, mostly in regard to the handling of clients' personal data. His first goal is to digitize all the records kept in file cabinets, as many of the documents contain personally identifiable financial and medical data. Also, Richard has noticed the massive amount of copying by the administrative assistant throughout the day, a practice that not only adds daily to the number of files in the file cabinets, but may create security issues unless a formal policy is firmly in place Richard is also concerned with the overuse of the communal copier/ printer located in plain view of clients who frequent the building. Yet another area of concern is the use of the same fax machine by all of the employees. Richard hopes to reduce its use dramatically in order to ensure that personal data receives the utmost security and protection, and eventually move toward a strict Internet faxing policy by the year's end.
Richard expressed his concerns to his grandfather, who agreed, that updating data storage, data security, and an overall approach to increasing the protection of personal data in all facets is necessary Mr. McAdams granted him the freedom and authority to do so. Now Richard is not only beginning a career as an attorney, but also functioning as the privacy officer of the small firm. Richard plans to meet with the IT employee the following day, to get insight into how the office computer system is currently set-up and managed.
Richard believes that a transition from the use of fax machine to Internet faxing provides all of the following security benefits EXCEPT?

• A. The ability to store faxes electronically, either on the user's PC or a password-protected network server.
• B. Reduction of the risk of data being seen or copied by unauthorized personnel.
• C. The ability to encrypt the transmitted faxes through a secure server.
• D. Greater accessibility to the faxes at an off-site location.

Answer: D

Explanation:
Explanation
A transition from the use of fax machine to Internet faxing does not provide the security benefit of greater accessibility to the faxes at an off-site location. This is because Internet faxing requires a secure internet connection and a compatible device to access the faxes online. If the user is at an off-site location that does not have these requirements, they may not be able to access their faxes. Furthermore, greater accessibility may not necessarily be a security benefit, as it may also increase the risk of unauthorized access or interception by third parties. Therefore, this option is not a security benefit of Internet faxing.
The other options are security benefits of Internet faxing. The ability to encrypt the transmitted faxes through a secure server ensures that the faxes are protected from eavesdropping or tampering during transmission. The reduction of the risk of data being seen or copied by unauthorized personnel eliminates the need for physical security measures such as locks or shredders for fax machines and paper documents. The ability to store faxes electronically, either on the user's PC or a password-protected network server, allows for better control and management of the faxes and reduces the storage space and costs associated with paper documents. References: 1: Is Online Fax Secure in 2023? All You Need to Know!; 2: Is faxing secure: How to fax from a computer safely - PandaDoc

NEW QUESTION # 73
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 has 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 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?

• A. Implementing clear policies
• B. Practicing data minimalism
• C. Ensuring adequacy of infrastructure
• D. Ensuring data retrievability

Answer: B

NEW QUESTION # 74
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 the most effective control to enforce MessageSafe's implementation of appropriate technical countermeasures to protect the personal data received from A&M LLP?

• A. MessageSafe must notify A&M LLP of a data breach.
• B. MessageSafe must apply due diligence before trusting Cloud Inc. with the personal data received from A&M LLP.
• C. MessageSafe must flow-down its data protection contract terms with A&M LLP to Cloud Inc.
• D. MessageSafe must apply appropriate security controls on the cloud infrastructure.

Answer: A

NEW QUESTION # 75
SCENARIO
Please use the following to answer the next QUESTION:
Perhaps Jack Kelly should have stayed in the U.S. He enjoys a formidable reputation inside the company, Special Handling Shipping, for his work in reforming certain "rogue" offices. Last year, news broke that a police sting operation had revealed a drug ring operating in the Providence, Rhode Island office in the United States. Video from the office's video surveillance cameras leaked to news operations showed a drug exchange between Special Handling staff and undercover officers.
In the wake of this incident, Kelly had been sent to Providence to change the "hands off" culture that upper management believed had let the criminal elements conduct their illicit transactions. After a few weeks under Kelly's direction, the office became a model of efficiency and customer service. Kelly monitored his workers' activities using the same cameras that had recorded the illegal conduct of their former co-workers.
Now Kelly has been charged with turning around the office in Cork, Ireland, another trouble spot. The company has received numerous reports of the staff leaving the office unattended. When Kelly arrived, he found that even when present, the staff often spent their days socializing or conducting personal business on their mobile phones. Again, he observed their behaviors using surveillance cameras. He issued written reprimands to six staff members based on the first day of video alone.
Much to Kelly's surprise and chagrin, he and the company are now under investigation by the Data Protection Commissioner of Ireland for allegedly violating the privacy rights of employees. Kelly was told that the company's license for the cameras listed facility security as their main use, but he does not know why this matters. He has pointed out to his superiors that the company's training programs on privacy protection and data collection mention nothing about surveillance video.
You are a privacy protection consultant, hired by the company to assess this incident, report on the legal and compliance issues, and recommend next steps.
Knowing that the regulator is now investigating, what would be the best step to take?

• A. Consult an attorney experienced in privacy law and litigation.
• B. Use your background and knowledge to set a course of action.
• C. Negotiate the terms of a settlement before formal legal action takes place.
• D. If you know the organization is guilty, advise it to accept the punishment.

Answer: A

NEW QUESTION # 76
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?

• A. Arrange for official credentials for staff members.
• B. Prove the authenticity of the company's records.
• C. Adequately document reasons for inconsistencies.
• D. Create categories to reflect degrees of data importance.

Answer: C

NEW QUESTION # 77
When a data breach incident has occurred. the first priority is to determine?

• A. When the breach occurred.
• B. How to contain the breach.
• C. Who caused the breach.
• D. How the breach occurred.

Answer: B

Explanation:
Explanation
When a data breach incident has occurred, the first priority is to determine how to contain the breach.
Containment means stopping or minimizing the further loss or unauthorized disclosure of personal data, as well as preserving evidence for investigation and remediation. Containment may involve isolating affected systems, devices, or networks; changing access credentials; blocking malicious IP addresses; or notifying relevant parties such as law enforcement or security experts. After containing the breach, the next steps are to assess the impact and severity of the breach, notify the affected individuals and authorities if required, evaluate the causes and risks of the breach, and implement measures to prevent future breaches1, 2. References: CIPM
- International Association of Privacy Professionals, Free CIPM Study Guide - International Association of Privacy Professionals

NEW QUESTION # 78
Which is TRUE about the scope and authority of data protection oversight authorities?

• A. All authority in the European Union rests with the Data Protection Commission (DPC).
• B. No one agency officially oversees the enforcement of privacy regulations in the United States.
• C. The Asia-Pacific Economic Cooperation (APEC) Privacy Frameworks require all member nations to designate a national data protection authority.
• D. The Office of the Privacy Commissioner (OPC) of Canada has the right to impose financial sanctions on violators.

Answer: B

Explanation:
Explanation
The true statement about the scope and authority of data protection oversight authorities is that no one agency officially oversees the enforcement of privacy regulations in the United States. Unlike other regions, such as the European Union or Canada, the United States does not have a comprehensive federal privacy law or a single national data protection authority. Instead, it has a patchwork of sector-specific and state-level laws and regulations, enforced by various federal and state agencies, such as the Federal Trade Commission (FTC), the Department of Health and Human Services (HHS), the Department of Commerce (DOC), etc. Additionally, individuals can also bring private lawsuits against organizations that violate their privacy rights. References:
[Data Protection Authorities], [Privacy Law in the United States]

NEW QUESTION # 79
Which of the following is TRUE about a PIA (Privacy Impact Analysis)?

• A. A Data Protection Impact Analysis (DPIA) process includes a PIA
• B. The PIA must be conducted at the early stages of the project lifecycle
• C. The results from a previous information audit can be leveraged in a PIA process
• D. Any project that involves the use of personal data requires a PIA

Answer: C

Explanation:
Explanation
The results from a previous information audit can be leveraged in a PIA process. An information audit is a systematic review of the personal data that an organization holds, such as its sources, purposes, locations, flows, and retention periods. An information audit can provide valuable input for a PIA, as it can help identify the types and categories of personal data that will be involved in the project, as well as the potential risks and impacts associated with them. References: IAPP CIPM Study Guide, page 27.

NEW QUESTION # 80
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