Data Governance & Compliance Flashcards

Which state was the first in the US to enact a comprehensive consumer privacy law?

Answer: California

California enacted the CCPA in 2018, the first comprehensive state consumer privacy law in the US.

A company uses a machine learning model to approve loans. Which governance concern is MOST relevant under US fair lending rules?

Answer: Bias and adverse impact on protected classes, plus explainability for adverse action notices

ECOA and Regulation B require non-discrimination and specific reasons for adverse credit decisions.

What is the purpose of a data governance council (or steering committee)?

Answer: To set priorities, approve policies, and resolve escalated cross-domain data issues

The council provides strategic direction and arbitrates data disputes across business units.

Pseudonymized personal data under the GDPR is best described as:

Answer: Still personal data, because it can be re-identified using additional information kept separately

Pseudonymized data remains personal data under GDPR because re-identification is possible.

Which practice best supports 'privacy by design' in a new data platform?

Answer: Building in default privacy controls such as minimization, access limits, and encryption from the design phase

Privacy by design embeds protections into systems proactively and by default.

A governance policy states data quality issues must be resolved at the source system rather than patched in reports. What is the main benefit?

Answer: It fixes root causes so every downstream consumer receives corrected data

Fixing at the source prevents repeated, inconsistent downstream workarounds.

Which tool is most useful for helping users discover governed datasets, their owners, definitions, and sensitivity classifications?

Answer: A data catalog

A data catalog inventories data assets with metadata such as ownership, definitions, and classification.