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IAPP Exam CIPM Topic 6 Question 80 Discussion

Actual exam question for IAPP's CIPM exam
Question #: 80
Topic #: 6
[All CIPM Questions]

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 dat

a. 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.

If Amira and Sadie's ideas about adherence to the company's privacy policy go unchecked, the Federal Communications Commission (FCC) could potentially take action against NatGen for what?

Show Suggested Answer Hide Answer
Suggested Answer: A

A physical control that can limit privacy risk is keypad or biometric access. This is a type of access control that restricts who can enter or access a physical location or device where personal data is stored or processed. Keypad or biometric access requires a code or a biological feature (such as a fingerprint or a face scan) to authenticate the identity and authorization of the person seeking access. This can prevent unauthorized access, theft, loss, or damage of personal data by outsiders or insiders, .Reference:[CIPM - International Association of Privacy Professionals], [Free CIPM Study Guide - International Association of Privacy Professionals]


Contribute your Thoughts:

Dorsey
3 days ago
Deceptive practices seem like the most likely outcome. Amira and Sadie's plans to let employees interpret the privacy policy as they see fit could easily lead to misleading customers about how their data is being used.
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Alline
5 days ago
But what about the hotline issue? Could that also lead to trouble with the FCC?
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Jaime
8 days ago
I agree, if they don't adhere to the privacy policy, they could be accused of deceptive practices.
upvoted 0 times
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Delmy
11 days ago
I think the answer is A) Deceptive practices.
upvoted 0 times
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