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Exam CIPM topic 1 question 140 discussion

Actual exam question from IAPP's CIPM
Question #: 140
Topic #: 1
[All CIPM Questions]

SCENARIO -
Please use the following to answer the next question:

Today is your first day at a fast growing international real estate firm headquartered in New York, with offices in Canada and Germany. You are the firm's first ever privacy officer.

While touring the office to meet your new colleagues and learn the layout of the office, you notice piles of printing jobs left on the printer in the copy room. You also note a recycle bin and garbage can near the printers. With a quick glance, you see a completed loan application form print out with applicant name, social security number and home address lying in the recycle bin. You make a note to follow up immediately.

You are then introduced to the head of IT who gives you a warm welcome and explains his star project this year - enterprise CRM (Customer Relationship Management) mobility. He is very proud that he is leading this innovation that allows firm-wide employees to access the existing CRM database remotely from anywhere on the Internet. The business value of this mobility initiative is significant. Since he doesn't have internal web development expertise, he outsourced the development work to a small IT firm in New York that has just successfully delivered another IT initiative for the company.

After the tour you start working on a plan based on your observations. One immediate action is to schedule a meeting with the head of IT to discuss the CRM mobility project.


All of the following should be mandatory in the contract for the outsourced vendor EXCEPT?

  • A. Generation of reports and metrics.
  • B. Information security controls.
  • C. Liability for data breach.
  • D. Cyber insurance.
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Suggested Answer: D 🗳️

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8c4076a
3 weeks ago
Selected Answer: A
Generation of reports and metrics is not a mandatory requirement for a vendor contract. While it's a good practice to monitor a vendor's performance, it is not a legally required clause in the same way that the others are. The other options are considered essential to protect a company's data and comply with regulations.
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