Free IAPP CIPM Exam Questions

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IAPP CIPM Exam Questions
Provided By: IAPP
Exam: Certified Information Privacy Manager
Certification: Certified Information Privacy Manager

Total Questions: 278
Updated On: Nov 12, 2024
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Question 1
- 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?
  
  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.
  
  Answer: B,C
Question 2
- 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.
  Which of the following policy statements needs additional instructions in order to further protect the personal
  data of their clients?
  
  A :
  All faxes sent from the office must be documented and the phone number used must be double checked to ensure a safe arrival
  
  B :
  All unused copies, prints, and faxes must be discarded in a designated recycling bin located near the work station and emptied daily.
  
  C :
  Before any copiers, printers, or fax machines are replaced or resold, the hard drives of these devices must be deleted before leaving the office
  
  D :
  When sending a print job containing personal data, the user must not leave the information visible on the computer screen following the print command and must retrieve the printed document immediately
  
  Answer: B
Question 3
- SCENARIO
  Please use the following to answer the next question:
  You lead the privacy office for a company that handles information from individuals living in several countries
  throughout Europe and the Americas. You begin that morning’s privacy review when a contracts officer sends
  you a message asking for a phone call. The message lacks clarity and detail, but you presume that data was
  lost.
  When you contact the contracts officer, he tells you that he received a letter in the mail from a vendor stating
  that the vendor improperly shared information about your customers. He called the vendor and confirmed that
  your company recently surveyed exactly 2000 individuals about their most recent healthcare experience and
  sent those surveys to the vendor to transcribe it into a database, but the vendor forgot to encrypt the database
  as promised in the contract. As a result, the vendor has lost control of the data.
  The vendor is extremely apologetic and offers to take responsibility for sending out the notifications. They tell
  you they set aside 2000 stamped postcards because that should reduce the time it takes to get the notice in the
  mail. One side is limited to their logo, but the other side is blank and they will accept whatever you want to write.
  You put their offer on hold and begin to develop the text around the space constraints. You are content to let
  the vendor’s logo be associated with the notification.
  The notification explains that your company recently hired a vendor to store information about their most recent
  experience at St. Sebastian Hospital’s Clinic for Infectious Diseases. The vendor did not encrypt the information
  and no longer has control of it. All 2000 affected individuals are invited to sign-up for email notifications about
  their information. They simply need to go to your company’s website and watch a quick advertisement, then
  provide their name, email address, and month and year of birth.
  You email the incident-response council for their buy-in before 9 a.m. If anything goes wrong in this situation,
  you want to diffuse the blame across your colleagues. Over the next eight hours, everyone emails their
  comments back and forth. The consultant who leads the incident-response team notes that it is his first day with
  the company, but he has been in other industries for 45 years and will do his best. One of the three lawyers on
  the council causes the conversation to veer off course, but it eventually gets back on track. At the end of the
  day, they vote to proceed with the notification you wrote and use the vendor’s postcards.
  Shortly after the vendor mails the postcards, you learn the data was on a server that was stolen, and make the
  decision to have your company offer credit monitoring services. A quick internet search finds a credit monitoring
  company with a convincing name: Credit Under Lock and Key (CRUDLOK). Your sales rep has never handled
  a contract for 2000 people, but develops a proposal in about a day which says CRUDLOK will:
  1. Send an enrollment invitation to everyone the day after the contract is signed.
  2. Enroll someone with just their first name and the last-4 of their national identifier.
  3. Monitor each enrollee’s credit for two years from the date of enrollment.
  4. Send a monthly email with their credit rating and offers for credit-related services at market rates.
  5. Charge your company 20% of the cost of any credit restoration.
  You execute the contract and the enrollment invitations are emailed to the 2000 individuals. Three days later
  you sit down and document all that went well and all that could have gone better. You put it in a file to reference
  the next time an incident occurs.
  Regarding the credit monitoring, which of the following would be the greatest concern?
  
  A : The vendor’s representative does not have enough experience
  
  B : Signing a contract with CRUDLOK which lasts longer than one year
  
  C : The company did not collect enough identifiers to monitor one’s credit
  
  D : You are going to notify affected individuals via a letter followed by an email
  
  Answer: C
Question 4
- 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 : Include appropriate language about privacy protection in vendor contracts.
  
  B : Perform a privacy audit on any vendor under consideration
  
  C : Require that a person trained in privacy protection be part of all vendor selection teams
  
  D : Do business only with vendors who are members of privacy trade associations
  
  Answer: A
Question 5
- 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 had 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 are 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.
  In terms of compliance with regulatory and legislative changes, Anton has a misconception regarding?
  
  A : The timeline for monitoring.
  
  B : The method of recordkeeping
  
  C : The use of internal employees
  
  D : The type of required qualifications.
  
  Answer: A

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