CSL CSL Corporate Liability & Risk Management 2

Question 1

Under the Gramm-Leach-Bliley Act (GLBA), which rule specifically mandates that financial institutions implement a written information security program?

Accepted Answer

Safeguards Rule

Answer

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

Question 2

Under HIPAA, which covered entity bears primary liability when a business associate suffers a data breach?

Accepted Answer

Both can face independent liability to HHS

Answer

The HITECH Act amendments made business associates directly liable to HHS for HIPAA violations, with covered entities also potentially liable for inadequate oversight.

Question 3

What is the maximum civil monetary penalty per violation category under HIPAA for willful neglect that is not corrected?

Accepted Answer

$1.9 million

Answer

HIPAA's tiered penalty structure imposes up to $1.9 million per violation category per calendar year for willful neglect that is not corrected.

Question 4

Which concept in corporate cybersecurity law refers to the baseline security practices that a reasonable company in a given industry should implement?

Accepted Answer

Industry standard of care

Answer

The industry standard of care sets the benchmark for negligence claims by measuring a company's security practices against what is reasonable for its industry.

Question 5

Under the Sarbanes-Oxley Act (SOX), cybersecurity controls on financial reporting systems are relevant primarily because:

Accepted Answer

Compromise of financial systems could affect the accuracy of certified financial statements

Answer

SOX Sections 302 and 906 require CEO/CFO certification of financial statements, creating liability if inadequate IT security allows manipulation of financial data.

(CSL) Cybersecurity Law Certification Practice Test

(CSL) Cybersecurity Law Certification Practice Test

CSL CSL Corporate Liability & Risk Management 2