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CIPM Practice Questions

Question # 1
Which term describes a piece of personal data that alone may not identify an individual?
A. Unbundled data
B. A singularity
C. Non-aggregated infopoint
D. A single attribute


D. A single attribute

Explanation:

A single attribute is a term that describes a piece of personal data that alone may not identify an individual, such as a first name or a zip code. However, when combined with other attributes, it may become identifiable. References: IAPP CIPM Study Guide, page 18.



Question # 2
Which of the following information must be provided by the data controller when complying with GDPR “right to be informed” requirements?
A. The purpose of personal data processing.
B. The data subject’s right to withdraw consent
C. The contact details of the Data Protection Officer (DPO).
D. The name of any organizations with whom personal data was shared.


C. The contact details of the Data Protection Officer (DPO).



Question # 3
SCENARIO
Please use the following to answer the next QUESTION:
Perhaps Jack Kelly should have stayed in the U.S. He enjoys a formidable reputation inside the company, Special Handling Shipping, for his work in reforming certain "rogue" offices. Last year, news broke that a police sting operation had revealed a drug ring operating in the Providence, Rhode Island office in the United States. Video from the office's video surveillance cameras leaked to news operations showed a drug exchange between Special Handling staff and undercover officers.
In the wake of this incident, Kelly had been sent to Providence to change the "hands off" culture that upper management believed had let the criminal elements conduct their illicit transactions. After a few weeks under Kelly's direction, the office became a model of efficiency and customer service. Kelly monitored his workers' activities using the same cameras that had recorded the illegal conduct of their former co-workers.
Now Kelly has been charged with turning around the office in Cork, Ireland, another trouble spot. The company has received numerous reports of the staff leaving the office unattended. When Kelly arrived, he found that even when present, the staff often spent their days socializing or conducting personal business on their mobile phones. Again, he observed their behaviors using surveillance cameras. He issued written reprimands to six staff members based on the first day of video alone.
Much to Kelly's surprise and chagrin, he and the company are now under investigation by the Data Protection Commissioner of Ireland for allegedly violating the privacy rights of employees. Kelly was told that the company's license for the cameras listed facility security as their main use, but he does not know why this matters. He has pointed out to his superiors that the company's training programs on privacy protection and data collection mention nothing about surveillance video.
You are a privacy protection consultant, hired by the company to assess this incident, report on the legal and compliance issues, and recommend next steps.
What does this example best illustrate about training requirements for privacy protection?
A. Training needs must be weighed against financial costs.
B. Training on local laws must be implemented for all personnel.
C. Training must be repeated frequently to respond to new legislation.
D. Training must include assessments to verify that the material is mastered.


B. Training on local laws must be implemented for all personnel.

Explanation: This answer is the best way to illustrate the training requirements for privacy protection, as it shows the importance of understanding and complying with the different legal and regulatory frameworks that apply to the organization’s data processing activities in different jurisdictions. Training on local laws must be implemented for all personnel who are involved in or responsible for collecting, using, disclosing, storing or transferring personal data across borders, as they may face different obligations and restrictions depending on the nature and location of the data and the data subjects. Training on local laws can help to prevent or mitigate the risks of violating the privacy rights of individuals, facing legal actions, fines, sanctions or investigations from authorities, or losing trust and reputation among customers, partners and stakeholders.


Question # 4
You would like your organization to be independently audited to demonstrate compliance with international privacy standards and to identify gaps for remediation. Which type of audit would help you achieve this objective?
A. First-party audit.
B. Second-party audit.
C. Third-party audit.
D. Fourth-party audit.


C. Third-party audit.

Explanation:

A third-party audit would help an organization achieve the objective of demonstrating compliance with international privacy standards and identifying gaps for remediation. A third-party audit is an audit conducted by an independent and external auditor who is not affiliated with either the audited organization or its customers. A third-party audit can provide an objective and impartial assessment of the organization’s privacy practices and policies, as well as verify its compliance with relevant standards and regulations. A third-party audit can also help the organization identify areas for improvement and recommend corrective actions. A third-party audit can enhance the organization’s reputation, trustworthiness, and credibility among its stakeholders and customers.

A first-party audit is an audit conducted by the organization itself or by someone within the organization who has been designated as an auditor. A first-party audit is also known as an internal audit. A first-party audit can help the organization monitor its own performance, evaluate its compliance with internal policies and procedures, and identify potential risks and opportunities for improvement. However, a first-party audit may not be sufficient to demonstrate compliance with external standards and regulations, as it may lack independence and objectivity.

A second-party audit is an audit conducted by a party that has an interest in or a relationship with the audited organization, such as a customer, a supplier, or a partner. A second-party audit is also known as an external audit. A second-party audit can help the party verify that the audited organization meets its contractual obligations, expectations, and requirements. A second-party audit can also help the party evaluate the quality and reliability of the audited organization’s products or services. However, a second-party audit may not be able to provide a comprehensive and unbiased assessment of the audited organization’s privacy practices and policies, as it may be influenced by the party’s own interests and objectives. References: Types of Audits: 14 Types of Audits and Level of Assurance (2022)



Question # 5
If your organization has a recurring issue with colleagues not reporting personal data breaches, all of the following are advisable to do EXCEPT?
A. Carry out a root cause analysis on each breach to understand why the incident happened.
B. Communicate to everyone that breaches must be reported and how they should be reported.
C. Provide role-specific training to areas where breaches are happening so they are more aware.
D. Distribute a phishing exercise to all employees to test their ability to recognize a threat attempt.


D. Distribute a phishing exercise to all employees to test their ability to recognize a threat attempt.

Explanation: Distributing a phishing exercise to all employees is not advisable to do if your organization has a recurring issue with colleagues not reporting personal data breaches. A phishing exercise is a simulated attack that tests the awareness and response of employees to malicious emails that attempt to obtain sensitive information or compromise systems. While phishing exercises can be useful to train employees on how to recognize and avoid phishing attacks, they are not directly related to the issue of reporting personal data breaches. The other options are more appropriate to address the root cause of the issue, communicate the expectations and procedures for reporting breaches, and provide specific training to areas where breaches are happening.


Question # 6
If an organization maintains a separate ethics office, to whom would its officer typically report to in order to retain the greatest degree of independence?
A. The Board of Directors.
B. The Chief Financial Officer.
C. The Human Resources Director.
D. The organization's General Counsel.


A. The Board of Directors.

Explanation:

If an organization maintains a separate ethics office, its officer would typically report to the Board of Directors in order to retain the greatest degree of independence. This is because the Board of Directors is the highest governing body of the organization and has the authority and responsibility to oversee the ethical conduct and performance of the organization and its management1 Reporting to the Board of Directors would enable the ethics officer to avoid any potential conflicts of interest or undue influence from other senior executives or managers who may have a stake in the ethical issues or decisions that the ethics office handles2 Reporting to the Board of Directors would also enhance the credibility and legitimacy of the ethics office and its recommendations, as well as demonstrate the organization’s commitment to ethical values and culture3

The other options are not as suitable as reporting to the Board of Directors for retaining the greatest degree of independence for the ethics office. Reporting to the Chief Financial Officer may create a conflict of interest or a perception of bias if the ethical issues or decisions involve financial matters or implications4 Reporting to the Human Resources Director may limit the scope or authority of the ethics office to deal with ethical issues or decisions that go beyond human resources policies or practices5 Reporting to the organization’s General Counsel may blur the distinction or create confusion between legal compliance and ethical conduct, as well as raise concerns about attorney-client privilege or confidentiality6 References: 1: Board Responsibilities | BoardSource; 2: Ethics Officer: Job Description, Duties and Requirements; 3: The Role Of The Ethics And Compliance Officer In The 21st Century | Corporate Compliance Insights; 4: Ethics Officer: Job Description, Duties and Requirements; 5: Ethics Officer: Job Description, Duties and Requirements; 6: Ethics Officer: Job Description, Duties and Requirements

Reference: [Reference: https://hbr.org/1994/03/managing-for-organizational-integrity, ]


Question # 7
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.
Which important principle of Data Lifecycle Management (DLM) will most likely be compromised if Anton executes his plan to limit data access to himself and Kenneth?
A. Practicing data minimalism.
B. Ensuring data retrievability.
C. Implementing clear policies.
D. Ensuring adequacy of infrastructure.


A. Practicing data minimalism.

Explanation:
The important principle of Data Lifecycle Management (DLM) that will most likely be compromised if Anton executes his plan to limit data access to himself and Kenneth is ensuring data retrievability. Data retrievability refers to the ability to access and use data when needed for business purposes or legal obligations1 It involves maintaining the availability, integrity, and usability of data throughout its lifecycle2 However, if Anton restricts data access to only himself and Kenneth, he will create a single point of failure and a bottleneck for data retrieval. This could pose several risks and challenges for the company, such as:
  • Losing data if Anton or Kenneth forgets the password or leaves the company without sharing it with others.
  • Delaying data retrieval if Anton or Kenneth is unavailable or unresponsive when someone else needs the data urgently.
  • Violating data protection laws or regulations that require data access by certain parties or authorities under certain circumstances.
  • Reducing data quality or accuracy if Anton or Kenneth fails to update or maintain the data properly.
  • Missing business opportunities or insights if Anton or Kenneth does not share the data with other relevant stakeholders or departments.
Therefore, Anton should reconsider his plan and adopt a more balanced and secure approach to data access management that follows the principle of least privilege. This means granting data access only to those who need it for their specific roles and responsibilities and revoking it when no longer needed3 He should also implement proper authentication, authorization, encryption, backup, and audit mechanisms to protect the data from unauthorized or unlawful access, use, disclosure, alteration, or destruction.


Question # 8
SCENARIO
Please use the following to answer the next QUESTION:
It's just what you were afraid of. Without consulting you, the information technology director at your organization launched a new initiative to encourage employees to use personal devices for conducting business. The initiative made purchasing a new, high-specification laptop computer an attractive option, with discounted laptops paid for as a payroll deduction spread over a year of paychecks. The organization is also paying the sales taxes. It's a great deal, and after a month, more than half the organization's employees have signed on and acquired new laptops. Walking through the facility, you see them happily customizing and comparing notes on their new computers, and at the end of the day, most take their laptops with them, potentially carrying personal data to their homes or other unknown locations. It's enough to give you data- protection nightmares, and you've pointed out to the information technology Director and many others in the organization the potential hazards of this new practice, including the inevitability of eventual data loss or theft.
Today you have in your office a representative of the organization's marketing department who shares with you, reluctantly, a story with potentially serious consequences. The night before, straight from work, with laptop in hand, he went to the Bull and Horn Pub to play billiards with his friends. A fine night of sport and socializing began, with the laptop "safely" tucked on a bench, beneath his jacket. Later that night, when it was time to depart, he retrieved the jacket, but the laptop was gone. It was not beneath the bench or on another bench nearby. The waitstaff had not seen it. His friends were not playing a joke on him. After a sleepless night, he confirmed it this morning, stopping by the pub to talk to the cleanup crew. They had not found it. The laptop was missing. Stolen, it seems. He looks at you, embarrassed and upset.
You ask him if the laptop contains any personal data from clients, and, sadly, he nods his head, yes. He believes it contains files on about 100 clients, including names, addresses and governmental identification numbers. He sighs and places his head in his hands in despair.
What should you do first to ascertain additional information about the loss of data?
A. Interview the person reporting the incident following a standard protocol.
B. Call the police to investigate even if you are unsure a crime occurred.
C. Investigate the background of the person reporting the incident.
D. Check company records of the latest backups to see what data may be recoverable.


A. Interview the person reporting the incident following a standard protocol.

Explanation:
This answer is the best way to ascertain additional information about the loss of data, as it allows you to gather relevant facts and details from the person who witnessed or experienced the incident. A standard protocol for interviewing the person reporting the incident should include questions such as:
When and where did the incident occur?
What type and amount of data was involved?
How was the data stored or protected on the laptop?
Who else had access to or knowledge of the laptop or the data?
What actions have been taken so far to recover or secure the laptop or the data?
How did you discover or report the incident?
Do you have any evidence or clues about who may have taken or accessed the laptop or the data?
Do you have any other information that may be relevant or helpful for the investigation? Interviewing the person reporting the incident following a standard protocol can help you to establish a clear timeline and scope of the incident, identify potential sources of evidence, assess the level of risk and harm to the individuals and the organization, and determine the next steps for responding to and resolving the incident.


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IAPP CIPM Exam Dumps

Exam Name: Certified Information Privacy Manager (CIPM)
Certification Name: Certified Information Privacy Manager

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  • Total Questions: 180
  • Last Updation Date: 17-Feb-2025

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