A retail loyalty program is considering a public blockchain to record customer reward points. The marketing team wants transparency, but the legal team is concerned about exposing customer purchase history. Which risk is most directly raised by this scenario, and what is the best mitigation?

Financial risk from token volatility; hedge with stablecoins.

Legal risk from smart contract bugs; conduct a third-party audit.

Privacy risk from on-chain transparency; use a permissioned blockchain or off-chain storage for personal data.

Operational risk from network downtime; implement redundant nodes.

How does blockchain's immutability facilitate regulatory auditing?

It allows auditors to modify historical records to correct errors

It ensures that once data is recorded, it cannot be altered, providing a reliable audit trail

It allows auditors to access data only with special permissions

It automatically generates audit reports without human intervention

A healthcare blockchain stores patient consent records. Under GDPR, patients have the right to withdraw consent at any time. How should the blockchain be designed to support this right?

Store consent status on-chain and allow the patient to overwrite it

Store consent in a smart contract that can be deleted

Use a private blockchain and claim GDPR does not apply

Store consent status off-chain and reference it via a hash on-chain, allowing updates when consent is withdrawn

A consortium of universities is launching a blockchain to store academic credentials. They want to ensure that only authorized institutions can issue credentials and that the system remains compliant with data protection regulations. Which governance structure is most appropriate?

A fully automated system where smart contracts automatically authorize issuers without human oversight.

A permissioned blockchain with a governance board that manages the list of authorized issuers and oversees data protection policies.

A single university that controls the entire network and makes all decisions.

A public blockchain where anyone can issue credentials, relying on reputation systems.

EC-CouncilBlockchain Business Leader Certification

Domain 7Objective 3

Risk Management Strategies and Compliance Mechanisms in Blockchain BBLC Practice Questions (Page 5)

Part of the Governance, Regulation, and Compliance domain, which makes up ~8% of our current practice bank.

48questions here

10free pages

8concepts

Questions 21–25

21application · medium
A retail loyalty program is considering a public blockchain to record customer reward points. The marketing team wants transparency, but the legal team is concerned about exposing customer purchase history. Which risk is most directly raised by this scenario, and what is the best mitigation?
Select an answer first
22foundation · easy
How does blockchain's immutability facilitate regulatory auditing?
Select an answer first
23foundation · easy
Which feature of blockchain most directly supports regulatory reporting by providing a complete and verifiable history of transactions?
Select an answer first
24application · medium
A healthcare blockchain stores patient consent records. Under GDPR, patients have the right to withdraw consent at any time. How should the blockchain be designed to support this right?
Select an answer first
25application · medium
A consortium of universities is launching a blockchain to store academic credentials. They want to ensure that only authorized institutions can issue credentials and that the system remains compliant with data protection regulations. Which governance structure is most appropriate?
Select an answer first

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