IAPP CIPP-US : Certified Information Privacy Professional/United States (CIPP/US)

SCENARIO
Please use the following to answer the next question:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in statea.
HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo.
CloudHealth stores the data in state B. As part of HealthCo's business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth's security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online. The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals ?ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees. Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual's ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient's attorney has submitted a discovery request for the ePHI exposed in the breach.
What is the most effective kind of training CloudHealth could have given its employees to help prevent this type of data breach?

• A. Training on the terms of the contractual agreement with HealthCo
• B. Training on CloudHealth's HR policy regarding the role of employees involved data breaches
• C. Training on techniques for identifying phishing attempts
• D. Training on the difference between confidential and non-public information

Which of the following is commonly required for an entity to be subject to breach notification requirements under most state laws?

• A. The entity must be registered in the state
• B. The entity must be an information broker
• C. The entity must have employees in the state
• D. The entity must conduct business in the state

A financial services company install "bossware" software on its employees' remote computers to monitor performance. The software logs screenshots, mouse movements, and keystrokes to determine whether an employee is being productive. The software can also enable the computer webcams to record video footage.
Which of the following would best support an employee claim for an intrusion upon seclusion tort?

• A. The software automatically sends a notification to a supervisor any time the employee's mouse is dormant for more than five minutes.
• B. The webcam is enabled to record video any time the computer is turned on.
• C. The webcam records video of an employee using a company laptop to perform personal business while at a coffee shop during work hours.
• D. The company creates and saves a biometric template for each employee based upon keystroke dynamics.

SCENARIO
Please use the following to answer the next question:
A US-based startup company is selling a new gaming application. One day, the CEO of the company receives an urgent letter from a prominent EU-based retail partner. Triggered by an unresolved complaint lodged by an EU resident, the letter describes an ongoing investigation by a supervisory authority into the retailer's data handling practices.
The complainant accuses the retailer of improperly disclosing her personal data, without consent, to parties in the United States. Further, the complainant accuses the EU-based retailer of failing to respond to her withdrawal of consent and request for erasure of her personal data. Your organization, the US-based startup company, was never informed of this request for erasure by the EU-based retail partner. The supervisory authority investigating the complaint has threatened the suspension of data flows if the parties involved do not cooperate with the investigation. The letter closes with an urgent request: "Please act immediately by identifying all personal data received from our company." This is an important partnership. Company executives know that its biggest fans come from Western Europe; and this retailer is primarily responsible for the startup's rapid market penetration.
As the Company's data privacy leader, you are sensitive to the criticality of the relationship with the retailer.
Upon review, the data privacy leader discovers that the Company's documented data inventory is obsolete. What is the data privacy leader's next best source of information to aid the investigation?

• A. Interviews with key marketing personnel
• B. Lists of all customers, sorted by country
• C. Database schemas held by the retailer
• D. Reports on recent purchase histories

SCENARIO
Please use the following to answer the next question:
Cheryl is the sole owner of Fitness Coach, Inc., a medium-sized company that helps individuals realize their physical fitness goals through classes, individual instruction, and access to an extensive indoor gym. She has owned the company for ten years and has always been concerned about protecting customer's privacy while maintaining the highest level of service. She is proud that she has built long-lasting customer relationships.
Although Cheryl and her staff have tried to make privacy protection a priority, the company has no formal privacy policy. So Cheryl hired Janice, a privacy professional, to help her develop one.
After an initial assessment, Janice created a first of a new policy. Cheryl read through the draft and was concerned about the many changes the policy would bring throughout the company. For example, the draft policy stipulates that a customer's personal information can only be held for one year after paying for a service such as a session with personal trainer. It also promises that customer information will not be shared with third parties without the written consent of the customer. The wording of these rules worry Cheryl since stored personal information often helps her company to serve her customers, even if there are long pauses between their visits. In addition, there are some third parties that provide crucial services, such as aerobics instructors who teach classes on a contract basis. Having access to customer files and understanding the fitness levels of their students helps instructors to organize their classes.
Janice understood Cheryl's concerns and was already formulating some ideas for revision. She tried to put Cheryl at ease by pointing out that customer data can still be kept, but that it should be classified according to levels of sensitivity. However, Cheryl was skeptical. It seemed that classifying data and treating each type differently would cause undue difficulties in the company's day-to-day operations. Cheryl wants one simple data storage and access system that any employee can access if needed.
Even though the privacy policy was only a draft, she was beginning to see that changes within her company were going to be necessary. She told Janice that she would be more comfortable with implementing the new policy gradually over a period of several months, one department at a time. She was also interested in a layered approach by creating documents listing applicable parts of the new policy for each department.
What is the most likely risk of Fitness Coach, Inc. adopting Janice's first draft of the privacy policy?

• A. Not being in standard compliance with applicable laws
• B. Leaving the company susceptible to violations by setting unrealistic goals
• C. Showing a lack of trust in the organization's privacy practices
• D. Failing to meet the needs of customers who are concerned about privacy