A financial services firm is conducting a PIA for a new customer onboarding process that will collect government-issued ID documents and biometric data for identity verification. The risk assessment identifies that storing the full ID documents creates a high risk of identity theft if the database is breached. Which mitigation strategy would be most effective in reducing this specific risk?

Increase the frequency of security audits for the database.

Implement multi-factor authentication for all employees with access to the database.

Replace stored ID documents with a one-way hash or tokenized reference after verification.

Encrypt the entire database where the ID documents are stored.

Which event would most likely require an update to an existing PIA?

A change in privacy regulations that affects data processing

A change in the organization's office location

What is the primary purpose of documenting a PIA?

To serve as a marketing tool for the organization

To provide a technical manual for system developers

To replace the need for data protection policies

To provide evidence of compliance and accountability

What is the purpose of encryption as a privacy risk mitigation measure?

To make personal data unreadable to unauthorized parties

To limit the collection of personal data

To anonymize personal data completely

To delete personal data after a certain period

What is the primary purpose of a Privacy Impact Assessment (PIA)?

To identify and mitigate privacy risks associated with the processing of personal data

To ensure that all personal data is encrypted at rest and in transit

To obtain legal approval for data processing activities

To document the technical architecture of a system for audit purposes

Certified Data Privacy Solutions Engineer

Domain 2Objective 2

Privacy-Focused Assessment (Privacy Impact Assessment) CDPSE Practice Questions (Page 5)

Part of the Privacy Risk Management and Compliance domain, which accounts for 18% of the CDPSE exam.

34questions here

7free pages

9concepts

18%of the exam

Questions 21–25

21application · medium
A financial services firm is conducting a PIA for a new customer onboarding process that will collect government-issued ID documents and biometric data for identity verification. The risk assessment identifies that storing the full ID documents creates a high risk of identity theft if the database is breached. Which mitigation strategy would be most effective in reducing this specific risk?
Select an answer first
22foundation · easy
Which event would most likely require an update to an existing PIA?
Select an answer first
23foundation · easy
What is the primary purpose of documenting a PIA?
Select an answer first
24foundation · easy
What is the purpose of encryption as a privacy risk mitigation measure?
Select an answer first
25foundation · easy
What is the primary purpose of a Privacy Impact Assessment (PIA)?
Select an answer first

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