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  3. CDPSE Exam
  4. ISACA.CDPSE.v2024-03-22.q117 Dumps
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Question 91

A multinational corporation is planning a big data initiative to help with critical business decisions. Which of the following is the BEST way to ensure personal data usage is standardized across the entire organization?

Correct Answer: C
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Question 92

An organization uses analytics derived from archived transaction data to create individual customer profiles for customizing product and service offerings. Which of the following is the IT privacy practitioner's BEST recommendation?

Correct Answer: D
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Question 93

Which of the following is an IT privacy practitioner's BEST recommendation to reduce privacy risk before an organization provides personal data to a third party?

Correct Answer: C
Explanation
Anonymization is a technique that removes or modifies all identifiers in a data set to prevent or limit the identification of the data subjects. Anonymization is an IT privacy practitioner's best recommendation to reduce privacy risk before an organization provides personal data to a third party, as it would protect the privacy of the data subjects by reducing the linkability of the data set with their original identity, and also comply with the data minimization principle that requires limiting the collection, storage and processing of personal data to what is necessary and relevant for the intended purposes. Anonymization would also preserve some characteristics or patterns of the original data that can be used for analysis or research purposes by the third party, without compromising the accuracy or quality of the results. The other options are not as effective as anonymization in reducing privacy risk before an organization provides personal data to a third party.
Tokenization is a technique that replaces sensitive or confidential data with non-sensitive tokens or placeholders that do not reveal the original data, but it does not prevent or limit the identification of the data subjects, as tokens can be reversed or linked back to the original data using a tokenization system or key.
Aggregation is a technique that combines individual data into groups or categories that do not reveal the identity of the data subjects, but it may not prevent or limit the identification of the data subjects, as aggregated data can be de-aggregated or re-identified using other sources of information or techniques. Encryption is a technique that transforms plain text data into cipher text using an algorithm and a key, making it unreadable by unauthorized parties, but it does not prevent or limit the identification of the data subjects, as encrypted data can be decrypted or linked back to the original data using an encryption system or key1, p. 74-75 References: 1: CDPSE Review Manual (Digital Version)
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Question 94

A mortgage lender has created an online application that collects borrower information and delivers a mortgage decision automatically based on criteria set by the lender. Which fundamental data subject right does this process infringe upon?

Correct Answer: C
Explanation
The right not to be profiled is the right of data subjects to not be subject to a decision based solely on automated processing, including profiling, which produces legal or similarly significant effects on them. The online application that delivers a mortgage decision automatically based on criteria set by the lender is an example of such a decision, as it affects the data subject's ability to obtain a loan.
References:
* What exactly is 'profiling' under the GDPR - DMA
* Can I be subject to automated individual decision-making, including profiling - European Commission
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Question 95

An online business posts its customer data protection notice that includes a statement indicating information is collected on how products are used, the content viewed, and the time and duration of online activities. Which data protection principle is applied?

Correct Answer: D
Explanation
Lawfulness and fairness is a data protection principle that states that personal data should be processed in a lawful, fair, and transparent manner in relation to the data subject. This means that personal data should be collected and used for legitimate purposes that are specified and communicated to the data subject, and that respect the rights and interests of the data subject. By posting its customer data protection notice that includes a statement indicating information is collected on how products are used, the content viewed, and the time and duration of online activities, an online business is applying the lawfulness and fairness principle. The online business is informing the customers about the purpose and scope of data collection, and obtaining their consent or legal basis for processing their personal data. References: : CDPSE Review Manual (Digital Version), page
2
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