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Earning the CIPM Certification demonstrates to employers and clients that a privacy professional has the knowledge and skills needed to effectively manage an organization's privacy program. It can also lead to career advancement and increased earning potential.

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IAPP CIPM Exam is designed for professionals who are responsible for managing privacy programs, including privacy officers, data protection officers, information security officers, and compliance officers. CIPM exam tests the knowledge and skills of the candidates in privacy program management, privacy operations, and privacy regulations. CIPM Exam is a comprehensive assessment of the candidate's ability to manage privacy programs and ensure compliance with privacy regulations.

IAPP Certified Information Privacy Manager (CIPM) Sample Questions (Q166-Q171):

NEW QUESTION # 166
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?

A. Data breach notification to A&M LLP.
B. Security commitment.
C. Certifications to relevant frameworks.
D. Privacy compliance.

Answer: C

NEW QUESTION # 167
SCENARIO
Please use the following to answer the next QUESTION:
Natalia, CFO of the Nationwide Grill restaurant chain, had never seen her fellow executives so anxious. Last week, a data processing firm used by the company reported that its system may have been hacked, and customer data such as names, addresses, and birthdays may have been compromised. Although the attempt was proven unsuccessful, the scare has prompted several Nationwide Grill executives to Question the company's privacy program at today's meeting.
Alice, a vice president, said that the incident could have opened the door to lawsuits, potentially damaging Nationwide Grill's market position. The Chief Information Officer (CIO), Brendan, tried to assure her that even if there had been an actual breach, the chances of a successful suit against the company were slim. But Alice remained unconvinced.
Spencer - a former CEO and currently a senior advisor - said that he had always warned against the use of contractors for data processing. At the very least, he argued, they should be held contractually liable for telling customers about any security incidents. In his view, Nationwide Grill should not be forced to soil the company name for a problem it did not cause.
One of the business development (BD) executives, Haley, then spoke, imploring everyone to see reason.
"Breaches can happen, despite organizations' best efforts," she remarked. "Reasonable preparedness is key." She reminded everyone of the incident seven years ago when the large grocery chain Tinkerton's had its financial information compromised after a large order of Nationwide Grill frozen dinners. As a long-time BD executive with a solid understanding of Tinkerton's's corporate culture, built up through many years of cultivating relationships, Haley was able to successfully manage the company's incident response.
Spencer replied that acting with reason means allowing security to be handled by the security functions within the company - not BD staff. In a similar way, he said, Human Resources (HR) needs to do a better job training employees to prevent incidents. He pointed out that Nationwide Grill employees are overwhelmed with posters, emails, and memos from both HR and the ethics department related to the company's privacy program. Both the volume and the duplication of information means that it is often ignored altogether.
Spencer said, "The company needs to dedicate itself to its privacy program and set regular in-person trainings for all staff once a month." Alice responded that the suggestion, while well-meaning, is not practical. With many locations, local HR departments need to have flexibility with their training schedules. Silently, Natalia agreed.
What is the most realistic step the organization can take to help diminish liability in the event of another incident?

A. Requiring the vendor to perform periodic internal audits.
B. Specifying mandatory data protection practices in vendor contracts.
C. Keeping the majority of processing activities within the organization.
D. Obtaining customer consent for any third-party processing of personal data.

Answer: B

Explanation:
Explanation
This answer is the most realistic step the organization can take to help diminish liability in the event of another incident, as it can ensure that the vendor complies with the same standards and obligations as the organization regarding data protection. Vendor contracts should include clauses that specify the scope, purpose, duration and type of data processing, as well as the rights and responsibilities of both parties. The contracts should also require the vendor to implement appropriate technical and organizational measures to protect the data from unauthorized or unlawful access, use, disclosure, alteration or destruction, and to notify the organization of any security incidents or breaches. The contracts should also allow the organization to monitor, audit or inspect the vendor's performance and compliance with the contract terms and applicable laws and regulations. References: IAPP CIPM Study Guide, page 82; ISO/IEC 27002:2013, section 15.1.2

NEW QUESTION # 168
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 needs to closely monitor the vendor in charge of creating the firm's database mainly because of what?

A. The vendor will be required to report any privacy violations to the appropriate authorities.
B. The vendor will be in direct contact with all of the law firm's personal data.
C. The vendor may not be aware of the privacy implications involved in the project.
D. The vendor may not be forthcoming about the vulnerabilities of the database.

Answer: B

Explanation:
Explanation
The main reason why Richard needs to closely monitor the vendor in charge of creating the firm's database is that the vendor will be in direct contact with all of the law firm's personal data. This means that the vendor will have access to sensitive and confidential information about the law firm's clients, such as their financial and medical data, which could expose them to identity theft, fraud, or other harms if mishandled or breached.
Therefore, Richard needs to ensure that the vendor follows the best practices of data protection and security, such as:
* Signing a data processing agreement that specifies the scope, purpose, duration, and terms of the data processing activities, as well as the rights and obligations of both parties.
* Implementing appropriate technical and organizational measures to protect the data from unauthorized or unlawful access, use, disclosure, alteration, or destruction, such as encryption, access control, backup and recovery, logging and monitoring, etc.
* Complying with the relevant laws and regulations that govern the collection, use, transfer, and retention of personal data, such as the GDPR or other local privacy laws.
* Reporting any data breaches or incidents to the law firm and the relevant authorities as soon as possible and taking corrective actions to mitigate the impact and prevent recurrence.
* Deleting or returning the data to the law firm after the completion of the project or upon request.

NEW QUESTION # 169
Which of the following best describes proper compliance for an international organization using Binding Corporate Rules (BCRs) as a controller or processor?

A. All employees must follow the privacy regulations of the jurisdictions where the current scope of their work is established.
B. All employees are subject to the rules in their entirety, regardless of where the work is taking place.
C. Employees who control personal data must complete a rigorous certification procedure, as they are exempt from legal enforcement.
D. Employees must sign an ad hoc contractual agreement each time personal data is exported.

Answer: A

Explanation:
Explanation
Binding Corporate Rules (BCRs) are a mechanism for international organizations to transfer personal data within their group of companies across different jurisdictions, in compliance with the EU General Data Protection Regulation (GDPR) and other privacy laws. BCRs are legally binding and enforceable by data protection authorities and data subjects. BCRs must ensure that all employees who process personal data follow the privacy regulations of the jurisdictions where the data originates from, regardless of where they are located or where the data is transferred to. References: [Binding Corporate Rules], [BCRs for controllers],
[BCRs for processors]

NEW QUESTION # 170
In privacy protection, what is a "covered entity"?

A. An organization subject to the privacy provisions of HIPAA.
B. Hidden gaps in privacy protection that may go unnoticed without expert analysis.
C. A privacy office or team fully responsible for protecting personal information.
D. Personal data collected by a privacy organization.

Answer: A

Explanation:
Explanation
A covered entity is an organization that is subject to the privacy provisions of the Health Insurance Portability and Accountability Act (HIPAA) of 1996. HIPAA regulates how covered entities use and disclose protected health information (PHI) of individuals. Covered entities include health plans, health care clearinghouses, and health care providers that transmit health information electronically. References: [HIPAA for Professionals],
[What is a Covered Entity?]

NEW QUESTION # 171
......

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IAPP Certified Information Privacy Manager (CIPM) Sample Questions (Q166-Q171):

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