CIPP-US Online Practice Questions and Answers

SCENARIO

Please use the following to answer the next question:

A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the

letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.

The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and

request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened

the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: "Please act immediately by identifying all personal data received from our company."

This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.

As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.

Upon review, the data privacy leader discovers that the Company's documented data inventory is obsolete. What is the data privacy leader's next best source of information to aid the investigation?

A. Reports on recent purchase histories

B. Database schemas held by the retailer

C. Lists of all customers, sorted by country

D. Interviews with key marketing personnel

All of the following are tasks in the "Discover" phase of building an information management program EXCEPT?

A. Facilitating participation across departments and levels

B. Developing a process for review and update of privacy policies

C. Deciding how aggressive to be in the use of personal information

D. Understanding the laws that regulate a company's collection of information

What are banks required to do under the Gramm-Leach-Bliley Act (GLBA)?

A. Conduct annual consumer surveys regarding satisfaction with user preferences

B. Process requests for changes to user preferences within a designated time frame

C. Provide consumers with the opportunity to opt out of receiving telemarketing phone calls

D. Offer an Opt-Out before transferring PI to an unaffiliated third party for the latter's own use

Within what time period must a commercial message sender remove a recipient's address once they have asked to stop receiving future e-mail?

A. 7 days

B. 10 days

C. 15 days

D. 21 days

SCENARIO

Please use the following to answer the next question:

You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider,

CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo's business associate agreement (BAA) with

CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering

the contract, and has not conducted audits of CloudHealth's security measures.

A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been

published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals ?ones that exposed the PHI of public figures including celebrities and politicians.

During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law

enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.

A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient's attorney has submitted

a discovery request for the ePHI exposed in the breach.

What is the most effective kind of training CloudHealth could have given its employees to help prevent this type of data breach?

A. Training on techniques for identifying phishing attempts

B. Training on the terms of the contractual agreement with HealthCo

C. Training on the difference between confidential and non-public information

D. Training on CloudHealth's HR policy regarding the role of employees involved data breaches

What practice does the USA FREEDOM Act NOT authorize?

A. Emergency exceptions that allow the government to target roamers

B. An increase in the maximum penalty for material support to terrorism

C. An extension of the expiration for roving wiretaps

D. The bulk collection of telephone data and internet metadata

SCENARIO

Please use the following to answer the next question:

Larry has become increasingly dissatisfied with his telemarketing position at SunriseLynx, and particularly with his supervisor, Evan. Just last week, he overheard Evan mocking the state's Do Not Call list, as well as the people on it. "If they

were really serious about not being bothered," Evan said, "They'd be on the national DNC list. That's the only one we're required to follow. At SunriseLynx, we call until they ask us not to."

Bizarrely, Evan requires telemarketers to keep records of recipients who ask them to call "another time." This, to Larry, is a clear indication that they don't want to be called at all. Evan doesn't see it that way.

Larry believes that Evan's arrogance also affects the way he treats employees. The U.S. Constitution protects American workers, and Larry believes that the rights of those at SunriseLynx are violated regularly. At first Evan seemed friendly,

even connecting with employees on social media. However, following Evan's political posts, it became clear to Larry that employees with similar affiliations were the only ones offered promotions.

Further, Larry occasionally has packages containing personal-use items mailed to work. Several times, these have come to him already opened, even though this name was clearly marked. Larry thinks the opening of personal mail is common

at SunriseLynx, and that Fourth Amendment rights are being trampled under Evan's leadership.

Larry has also been dismayed to overhear discussions about his coworker, Sadie. Telemarketing calls are regularly recorded for quality assurance, and although Sadie is always professional during business, her personal conversations

sometimes contain sexual comments. This too is something Larry has heard Evan laughing about. When he mentioned this to a coworker, his concern was met with a shrug. It was the coworker's belief that employees agreed to be monitored

when they signed on. Although personal devices are left alone, phone calls, emails and browsing histories are all subject to surveillance. In fact, Larry knows of one case in which an employee was fired after an undercover investigation by an

outside firm turned up evidence of misconduct. Although the employee may have stolen from the company, Evan could have simply contacted the authorities when he first suspected something amiss.

Larry wants to take action, but is uncertain how to proceed.

In what area does Larry have a misconception about private-sector employee rights?

A. The applicability of federal law

B. The enforceability of local law

C. The strict nature of state law

D. The definition of tort law

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether an individual is likely to pay their bill or default. A person who is determined by the algorithm to be more likely to default will receive frequent payment reminder calls, while those who are less likely to default will not receive payment reminders.

Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company using artificial intelligence in this manner?

A. If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.

B. If the algorithm makes automated decisions based on risk factors and public information, Acme need not determine if the algorithm has a disparate impact on protected classes.

C. If the algorithm's methodology is disclosed to consumers, then it is acceptable for Acme to have a disparate impact on protected classes.

D. If the algorithm uses information about protected classes to make automated decisions, Acme must ensure that the algorithm does not have a disparate impact on protected classes in the output.

When designing contact tracing apps in relation to COVID-19 or any other diagnosed virus, all of the following privacy measures should be considered EXCEPT?

A. Data retention.

B. Use limitations.

C. Opt-out choice.

D. User con dentiality.

As a result of the Schrems II decision and CJEU opinion, what would the preferred course of action be if a Section 702 disclosure related to a foreign entity is required?

A. Ensure that the most recent SCC from the European Commission is being executed as a valid method of adequacy.

B. Provide 30 days notice to affected parties to allow the opportunity for ling a motion to quash with the court.

C. Seek redress from the court pursuing a protective order, since the consumer is unable to le a motion to quash.

D. Seek the advice of outside counsel and conduct a transfer impact assessment.