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CIPP-E Exam Dumps - Certified Information Privacy Professional/Europe (CIPP/E)

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Question # 25

To provide evidence of GDPR compliance, a company performs an internal audit. As a result, it finds a data base, password-protected, listing all the social network followers of the client.

Regarding the domain of the controller-processor relationships, how is this situation considered?

A.

Compliant with the security principle, because the data base is password-protected.

B.

Non-compliant, because the storage of the data exceeds the tasks contractually authorized by the controller.

C.

Not applicable, because the data base is password protected, and therefore is not at risk of identifying any data subject.

D.

Compliant with the storage limitation principle, so long as the internal auditor permanently deletes the data base.

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Question # 26

Which of the following would MOST likely trigger the extraterritorial effect of the GDPR, as specified by Article 3?

A.

The behavior of suspected terrorists being monitored by EU law enforcement bodies.

B.

Personal data of EU citizens being processed by a controller or processor based outside the EU.

C.

The behavior of EU citizens outside the EU being monitored by non-EU law enforcement bodies.

D.

Personal data of EU residents being processed by a non-EU business that targets EU customers.

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Question # 27

If a company is planning to use closed-circuit television (CCTV) on its premises and is concerned with GDPR compliance, it should first do all of the following EXCEPT?

A.

Notify the appropriate data protection authority.

B.

Perform a data protection impact assessment (DPIA).

C.

Create an information retention policy for those who operate the system.

D.

Ensure that safeguards are in place to prevent unauthorized access to the footage.

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Question # 28

SCENARIO

Please use the following to answer the next question:

Jane starts her new role as a Data Protection Officer (DPO) at a Malta-based

company that allows anyone to buy and sell cryptocurrencies via its online platform.

The company stores and processes the personal data of its customers in a

dedicated data center located in Malta (EU).

People wishing to trade cryptocurrencies are required to open an online account on

the platform. They then must successfully pass a Know Your Customer (KYC) due

diligence procedure aimed at preventing money laundering and ensuring

compliance with applicable financial regulations.

The non-European customers are also required to waive all their GDPR rights by

reading a disclaimer written in bold and ticking a checkbox on a separate page in

order to get their account approved on the platform.

All customers must likewise accept the terms of service of the platform. The terms

of service also include a privacy policy section, saying, among other things, that if a

customer fails the KYC process, its KYC data will be automatically shared with the

national anti-money laundering agency.

The KYC procedure requires customers to answer many questions, including

whether they have any criminal convictions, whether they use recreational drugs or

have problems with alcohol, and whether they have a terminal illness. While

providing this data, customers see a conspicuous message saying that this data is

meant only to prevent fraud and account takeover, and will be never shared with

private third parties.

The company regularly conducts external security testing of its online systems by

independent cybersecurity companies from the EU. At the final stage of testing, the

company provides cybersecurity assessors with access to its central database to

review security permissions, roles and policies. Personal data in the database is

encrypted; however, cybersecurity assessors usually have access to the decryption

keys obtained while running initial security testing. The assessors must strictly

follow the guidelines imposed by the company during the entire testing and auditing

process.

All customer data, including trading activities and all internal communications with

technical support, are permanently stored in a secured AWS S3 Glacier cloud data

storage, located in Ireland, for backup and compliance purposes. The data is

securely transferred to the cloud and then is properly encrypted while at rest by

using AWS-native encryption mechanisms. These mechanisms give AWS the

necessary technical means to encrypt and decrypt the data when such is required

by the company. There is no data processing agreement between AWS and the

company.

Should Jane modify the required GDPR rights waiver for non-European residents?

A.

Yes, the waiver must not apply to any residents of countries with an adequacy decision from the EC.

B.

Yes, this clause must be entirely removed as all customers,

regardless of residence or nationality, shall enjoy the same individual rights granted under GDPR.

C.

No, the non-EU residents are not protected by GDPR unless they are physically located in the EU.

D.

No, but all non-EU residents must manually sign a separate waiver to ensure its lawfulness and enforceability under GDPR.

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Question # 29

SCENARIO

Please use the following to answer the next question:

Anna and Frank both work at Granchester University. Anna is a lawyer responsible for data protection, while Frank is a lecturer in the engineering department. The University maintains a number of types of records:

  • Student records, including names, student numbers, home addresses, pre-university information, university attendance and performance records, details of special educational needs and financial information.
  • Staff records, including autobiographical materials (such as curricula, professional contact files, student evaluations and other relevant teaching files).
  • Alumni records, including birthplaces, years of birth, dates of matriculation and conferrals of degrees. These records are available to former students after registering through Granchester’s Alumni portal. Department for Education records, showing how certain demographic groups (such as first-generation students) could be expected, on average, to progress. These records do not contain names or identification numbers.
  • Under their security policy, the University encrypts all of its personal data records in transit and at rest.

In order to improve his teaching, Frank wants to investigate how his engineering students perform in relational to Department for Education expectations. He has attended one of Anna’s data protection training courses and knows that he should use no more personal data than necessary to accomplish his goal. He creates a

program that will only export some student data: previous schools attended, grades originally obtained, grades currently obtained and first time university attended. He wants to keep the records at the individual student level. Mindful of Anna’s training, Frank runs the student numbers through an algorithm to transform them into different reference numbers. He uses the same algorithm on each occasion so that he can update each record over time.

One of Anna’s tasks is to complete the record of processing activities, as required by the GDPR. After receiving her email reminder, as required by the GDPR. After receiving her email reminder, Frank informs Anna about his performance database.

Ann explains to Frank that, as well as minimizing personal data, the University has to check that this new use

of existing data is permissible. She also suspects that, under the GDPR, a risk analysis may have to be carried out before the data processing can take place. Anna arranges to discuss this further with Frank after she has done some additional research.

Frank wants to be able to work on his analysis in his spare time, so he transfers it to his home laptop (which is not encrypted). Unfortunately, when Frank takes the laptop into the University he loses it on the train. Frank has to see Anna that day to discuss compatible processing. He knows that he needs to report security incidents, so he decides to tell Anna about his lost laptop at the same time.

Before Anna determines whether Frank’s performance database is permissible, what additional information does she need?

A.

More information about Frank’s data protection training.

B.

More information about the extent of the information loss.

C.

More information about the algorithm Frank used to mask student numbers.

D.

More information about what students have been told and how the research will be used.

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Question # 30

When would a data subject NOT be able to exercise the right to portability?

A.

When the processing is necessary to perform a task in the exercise of authority vested in the controller.

B.

When the processing is carried out pursuant to a contract with the data subject.

C.

When the data was supplied to the controller by the data subject.

D.

When the processing is based on consent.

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Question # 31

SCENARIO

Please use the following to answer the next question:

Liem, an online retailer known for its environmentally friendly shoes, has recently expanded its presence in Europe. Anxious to achieve market dominance, Liem teamed up with another eco friendly company, EcoMick, which sells accessories like belts and bags. Together the companies drew up a series of marketing campaigns designed to highlight the environmental and economic benefits of their products. After months of planning, Liem and EcoMick entered into a data sharing agreement to use the same marketing database, MarketIQ, to send the campaigns to their respective contacts.

Liem and EcoMick also entered into a data processing agreement with MarketIQ, the terms of which included processing personal data only upon Liem and EcoMick’s instructions, and making available to them all information necessary to demonstrate compliance with GDPR obligations.

Liem and EcoMick then procured the services of a company called JaphSoft, a marketing optimization firm that uses machine learning to help companies run successful campaigns. Clients provide JaphSoft with the personal data of individuals they would like to be targeted in each campaign. To ensure protection of its

clients’ data, JaphSoft implements the technical and organizational measures it deems appropriate. JaphSoft works to continually improve its machine learning models by analyzing the data it receives from its clients to determine the most successful components of a successful campaign. JaphSoft then uses such models in providing services to its client-base. Since the models improve only over a period of time as more information is collected, JaphSoft does not have a deletion process for the data it receives from clients. However, to ensure compliance with data privacy rules, JaphSoft pseudonymizes the personal data by removing identifying

information from the contact information. JaphSoft’s engineers, however, maintain all contact information in the same database as the identifying information.

Under its agreement with Liem and EcoMick, JaphSoft received access to MarketIQ, which included contact information as well as prior purchase history for such contacts, to create campaigns that would result in the most views of the two companies’ websites. A prior Liem customer, Ms. Iman, received a marketing campaign from JaphSoft regarding Liem’s as well as EcoMick’s latest products. While Ms. Iman recalls checking a box to receive information in the future regarding Liem’s products, she has never shopped EcoMick, nor provided her personal data to that company.

Under the GDPR, Liem and EcoMick’s contract with MarketIQ must include all of the following provisions EXCEPT?

A.

Processing the personal data upon documented instructions regarding data transfers outside of the EEA.

B.

Notification regarding third party requests for access to Liem and EcoMick’s personal data.

C.

Assistance to Liem and EcoMick in their compliance with data protection impact assessments.

D.

Returning or deleting personal data after the end of the provision of the services.

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Question # 32

A dynamic Internet Protocol (IP) address is considered persona! data when it is combined with what?

A.

Other data held by the processor.

B.

Other data held by the controller

C.

Other data held by recipients of the data.

D.

Other data held by Internet Service Providers (ISPs).

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