CGRC Regulatory Requirements 3

Question 1

Under the California Consumer Privacy Act (CCPA), consumers have the right to opt out of which specific activity?

Accepted Answer

Sale of their personal information

Answer

CCPA grants California consumers the right to opt out of the sale of their personal information to third parties by notifying the business.

Question 2

The Basel III framework primarily applies to which type of organization?

Accepted Answer

Banks and financial institutions

Answer

Basel III is an international regulatory framework developed by the Basel Committee on Banking Supervision to strengthen regulation, supervision, and risk management of banks.

Question 3

Which regulation requires broker-dealers and investment advisers to maintain books and records and make them available to regulators for inspection?

Accepted Answer

SEC Rule 17a-4

Answer

SEC Rule 17a-4 specifies the record retention requirements for broker-dealers, including the media, format, and accessibility of electronic records.

Question 4

Under NERC CIP standards, what is the primary purpose of the BES Cyber System categorization (High, Medium, Low)?

Accepted Answer

Identifying the applicable security requirements for each system

Answer

NERC CIP categorizes BES Cyber Systems as High, Medium, or Low impact to determine which security requirements apply, with stricter controls for higher-impact systems.

Question 5

The EU AI Act's risk-based approach classifies AI systems into tiers. Which category faces an outright ban?

Accepted Answer

Unacceptable risk AI systems

Answer

The EU AI Act prohibits AI systems classified as posing unacceptable risk, such as social scoring systems or real-time biometric surveillance in public spaces.

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC - Certified Governance Risk and Compliance Practice Test

CGRC Regulatory Requirements 3