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Exam CIPM topic 1 question 92 discussion

Actual exam question from IAPP's CIPM
Question #: 92
Topic #: 1
[All CIPM Questions]

SCENARIO -
Please use the following to answer the next question:
For 15 years, Albert has worked at Treasure Box – a mail order company in the United States (U.S.) that used to sell decorative candles around the world, but has recently decided to limit its shipments to customers in the 48 contiguous states. Despite his years of experience, Albert is often overlooked for managerial positions. His frustration about not being promoted, coupled with his recent interest in issues of privacy protection, have motivated Albert to be an agent of positive change.
He will soon interview for a newly advertised position, and during the interview, Albert plans on making executives aware of lapses in the company’s privacy program. He feels certain he will be rewarded with a promotion for preventing negative consequences resulting from the company’s outdated policies and procedures.
For example, Albert has learned about the AICPA (American Institute of Certified Public Accountans)/CICA (Canadian Institute of Chartered Accountants) Privacy Maturity Model (PMM). Albert thinks the model is a useful way to measure Treasure Box’s ability to protect personal data. Albert has noticed that Treasure Box fails to meet the requirements of the highest level of maturity of this model; at his interview, Albert will pledge to assist the company with meeting this level in order to provide customers with the most rigorous security available.
Albert does want to show a positive outlook during his interview. He intends to praise the company’s commitment to the security of customer and employee personal data against external threats. However, Albert worries about the high turnover rate within the company, particularly in the area of direct phone marketing. He sees many unfamiliar faces every day who are hired to do the marketing, and he often hears complaints in the lunch room regarding long hours and low pay, as well as what seems to be flagrant disregard for company procedures.
In addition, Treasure Box has had two recent security incidents. The company has responded to the incidents with internal audits and updates to security safeguards. However, profits still seem to be affected and anecdotal evidence indicates that many people still harbor mistrust. Albert wants to help the company recover. He knows there is at least one incident the public in unaware of, although Albert does not know the details. He believes the company’s insistence on keeping the incident a secret could be a further detriment to its reputation. One further way that Albert wants to help Treasure Box regain its stature is by creating a toll-free number for customers, as well as a more efficient procedure for responding to customer concerns by postal mail.
In addition to his suggestions for improvement, Albert believes that his knowledge of the company’s recent business maneuvers will also impress the interviewers. For example, Albert is aware of the company’s intention to acquire a medical supply company in the coming weeks.
With his forward thinking, Albert hopes to convince the managers who will be interviewing him that he is right for the job.
In consideration of the company’s new initiatives, which of the following laws and regulations would be most appropriate for Albert to mention at the interview as a priority concern for the privacy team?

  • A. Gramm-Leach-Bliley Act (GLBA)
  • B. The General Data Protection Regulation (GDPR)
  • C. The Telephone Consumer Protection Act (TCPA)
  • D. Health Insurance Portability and Accountability Act (HIPAA)
Show Suggested Answer Hide Answer
Suggested Answer: D 🗳️

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Chosen Answer:
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c4c7b78
4 months, 2 weeks ago
The context is US – nothing relates to the GDPR so B is not correct. GLBA is for banking services, so only C and D are applicable. Since the purchase of a medical supply company is still future (and there is not a clear indication of whether they will be sharing PI), it is not likely to be HIPAA. The most likely answer is C, since that is where they have challenges and ‘flagrant disregard’.
upvoted 1 times
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humhain
8 months, 3 weeks ago
Selected Answer: D
Health Insurance Portability and Accountability Act (HIPAA)
upvoted 1 times
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[Removed]
1 year, 2 months ago
Selected Answer: D
Should be D
upvoted 1 times
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Ssourav
1 year, 3 months ago
Selected Answer: D
HIPAA deals with the protection of medical records and other personal health information, which would be directly relevant if Treasure Box is entering the medical supply industry. This act mandates the safeguarding of personal health information and sets standards for the confidentiality, integrity, and availability of health records.
upvoted 2 times
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Adyyogi
1 year, 3 months ago
Selected Answer: D
-medical services - HIPAA- D
upvoted 2 times
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Boats
1 year, 5 months ago
Selected Answer: C
They may or may not need protected health information for the new acquisition so D is a possibility. However, they do have a call center and have to deal with TCPA right now.
upvoted 1 times
DPRamone
8 months, 2 weeks ago
B. "In consideration of the company’s NEW initiatives"
upvoted 1 times
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Alex951
1 year, 5 months ago
Selected Answer: D
Should be HIPAA
upvoted 2 times
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Boerenkool
1 year, 8 months ago
Selected Answer: D
Hipaa applies to companies dealing with health data
upvoted 3 times
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Larryqwe
1 year, 9 months ago
Should be d HIPAA: aquiring a company dealing in health data
upvoted 4 times
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A (35%)
C (25%)
B (20%)
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