CDPSE Risk Management 3

Question 1

Which risk treatment option involves purchasing cyber liability insurance to cover costs associated with a data breach?

Accepted Answer

Risk transfer

Answer

Risk transfer shifts the financial consequences of a risk to a third party, such as an insurer, though the underlying risk and liability may still remain.

Question 2

A privacy risk assessment reveals a HIGH inherent risk for a customer data analytics program. After applying controls, residual risk drops to LOW. What should the CDPSE do next?

Accepted Answer

Document the controls and obtain risk owner sign-off on residual risk

Answer

Once residual risk is reduced to an acceptable level, the CDPSE should document the controls applied and obtain formal acceptance from the risk owner.

Question 3

Which of the following BEST represents the concept of 'privacy risk' as distinct from 'security risk'?

Accepted Answer

Privacy risk encompasses harms to individuals from inappropriate use of their personal data

Answer

Privacy risk centers on potential harms to data subjects—such as discrimination, loss of autonomy, or reputational damage—rather than organizational financial losses alone.

Question 4

A CDPSE is mapping privacy risks across the data lifecycle. At which stage is the risk of unauthorized secondary use MOST likely to occur?

Accepted Answer

Data use and sharing

Answer

Unauthorized secondary use—using data for purposes beyond the original collection intent—most commonly manifests during the use and sharing stage of the data lifecycle.

Question 5

Which of the following is a leading indicator that privacy risk management processes are effective?

Accepted Answer

Reduction in the number of privacy risks escalated without treatment

Answer

A reduction in unaddressed escalated risks indicates that risk treatment processes are working effectively and risks are being resolved proactively.

CDPSE - Certified Data Privacy Solutions Engineer Practice Test

CDPSE - Certified Data Privacy Solutions Engineer Practice Test

CDPSE Risk Management 3