CCCP Technology & Data Compliance 3

Question 1

A financial institution must comply with the Gramm-Leach-Bliley Act (GLBA). Which rule specifically requires the institution to implement an information security program?

Accepted Answer

Safeguards Rule

Answer

The GLBA Safeguards Rule requires financial institutions to develop, implement, and maintain a comprehensive information security program to protect customer financial data.

Question 2

Under SOC 2 auditing standards, which Trust Services Criteria category addresses whether the system is available for operation and use as committed?

Accepted Answer

Availability

Answer

The Availability criteria in SOC 2 evaluates whether systems and information are accessible for operation and use as promised in service level agreements.

Question 3

Which technique renders personal data permanently anonymous by removing all identifiers so that re-identification is no longer possible?

Accepted Answer

Anonymization

Answer

Anonymization irreversibly removes all identifying information so data can no longer be linked to an individual, distinguishing it from pseudonymization which is reversible.

Question 4

A company's AI algorithm is found to systematically deny loans to applicants from certain zip codes that correlate with racial demographics. This scenario raises concerns under which compliance area?

Accepted Answer

Algorithmic bias and fair lending laws

Answer

Algorithmic decision-making that produces disparate impact based on protected characteristics violates fair lending laws such as the Equal Credit Opportunity Act (ECOA) and Fair Housing Act.

Question 5

What is the standard maximum fine for a GDPR violation categorized as a Tier 2 infringement (most serious)?

Accepted Answer

€20 million or 4% of global annual turnover

Answer

GDPR Tier 2 violations, such as breaching core principles or data subject rights, carry fines up to €20 million or 4% of total worldwide annual turnover, whichever is higher.

(CCCP) Certified Corporate Compliance Professional Practice Test

(CCCP) Certified Corporate Compliance Professional Practice Test

CCCP Technology & Data Compliance 3