100% Free IAPP CIPM Practice Test Questions

Question 1

SCENARIO -

Please use the following to answer the next question:

Today is your first day at a fast growing international real estate firm headquartered in New York, with offices in Canada and Germany. You are the firm's first ever privacy officer.

While touring the office to meet your new colleagues and learn the layout of the office, you notice piles of printing jobs left on the printer in the copy room. You also note a recycle bin and garbage can near the printers. With a quick glance, you see a completed loan application form print out with applicant name, social security number and home address lying in the recycle bin. You make a note to follow up immediately.

You are then introduced to the head of IT who gives you a warm welcome and explains his star project this year - enterprise CRM (Customer Relationship Management) mobility. He is very proud that he is leading this innovation that allows firm-wide employees to access the existing CRM database remotely from anywhere on the Internet. The business value of this mobility initiative is significant. Since he doesn't have internal web development expertise, he outsourced the development work to a small IT firm in New York that has just successfully delivered another IT initiative for the company.

After the tour you start working on a plan based on your observations. One immediate action is to schedule a meeting with the head of IT to discuss the CRM mobility project.

While reviewing the contract with the firm the CRM mobility project was outsourced to, all of the following should be mandatory EXCEPT?

A : Right to audit.

B : Breach notification.

C : Security Commitment.

D : Service level agreements.

Answer: D

Question 2

SCENARIO

Please use the following to answer the next question:

You lead the privacy office for a company that handles information from individuals living in several countries

throughout Europe and the Americas. You begin that morning’s privacy review when a contracts officer sends

you a message asking for a phone call. The message lacks clarity and detail, but you presume that data was

lost.

When you contact the contracts officer, he tells you that he received a letter in the mail from a vendor stating

that the vendor improperly shared information about your customers. He called the vendor and confirmed that

your company recently surveyed exactly 2000 individuals about their most recent healthcare experience and

sent those surveys to the vendor to transcribe it into a database, but the vendor forgot to encrypt the database

as promised in the contract. As a result, the vendor has lost control of the data.

The vendor is extremely apologetic and offers to take responsibility for sending out the notifications. They tell

you they set aside 2000 stamped postcards because that should reduce the time it takes to get the notice in the

mail. One side is limited to their logo, but the other side is blank and they will accept whatever you want to write.

You put their offer on hold and begin to develop the text around the space constraints. You are content to let

the vendor’s logo be associated with the notification.

The notification explains that your company recently hired a vendor to store information about their most recent

experience at St. Sebastian Hospital’s Clinic for Infectious Diseases. The vendor did not encrypt the information

and no longer has control of it. All 2000 affected individuals are invited to sign-up for email notifications about

their information. They simply need to go to your company’s website and watch a quick advertisement, then

provide their name, email address, and month and year of birth.

You email the incident-response council for their buy-in before 9 a.m. If anything goes wrong in this situation,

you want to diffuse the blame across your colleagues. Over the next eight hours, everyone emails their

comments back and forth. The consultant who leads the incident-response team notes that it is his first day with

the company, but he has been in other industries for 45 years and will do his best. One of the three lawyers on

the council causes the conversation to veer off course, but it eventually gets back on track. At the end of the

day, they vote to proceed with the notification you wrote and use the vendor’s postcards.

Shortly after the vendor mails the postcards, you learn the data was on a server that was stolen, and make the

decision to have your company offer credit monitoring services. A quick internet search finds a credit monitoring

company with a convincing name: Credit Under Lock and Key (CRUDLOK). Your sales rep has never handled

a contract for 2000 people, but develops a proposal in about a day which says CRUDLOK will:

1. Send an enrollment invitation to everyone the day after the contract is signed.

2. Enroll someone with just their first name and the last-4 of their national identifier.

3. Monitor each enrollee’s credit for two years from the date of enrollment.

4. Send a monthly email with their credit rating and offers for credit-related services at market rates.

5. Charge your company 20% of the cost of any credit restoration.

You execute the contract and the enrollment invitations are emailed to the 2000 individuals. Three days later

you sit down and document all that went well and all that could have gone better. You put it in a file to reference

the next time an incident occurs.

Regarding the credit monitoring, which of the following would be the greatest concern?

A : The vendor’s representative does not have enough experience

B : Signing a contract with CRUDLOK which lasts longer than one year

C : The company did not collect enough identifiers to monitor one’s credit

D : You are going to notify affected individuals via a letter followed by an email

Answer: A

Question 3

The most direct way to ensure you are effectively communicating your privacy mission throughout your organization is to?

A : Ensure marketing activity is adequately resourced.

B : Evaluate the content in your privacy awareness program.

C : Survey buy-in from your team and stakeholders on a privacy strategy.

D : Review the quantity of Data Protection Impact Assessments (DPIAs) to ensure completeness for every project.

Answer: B,C

Question 4

Your company provides a SaaS tool for B2B services and does not interact with individual consumers. A client's current employee reaches out with a right to delete request, what is the most appropriate response?

A : Forward the request to the contact on file for the client asking them how they would like you to proceed.

B : Redirect the individual back to their employer to understand their rights and how this might impact access to company tools.

C : Process the request assuming that the individual understands the implications to their organization if their information is deleted.

D : Explain you are unable to process the request because business contact information and associated data is not covered under privacy rights laws.

Answer: B

Question 5

SCENARIO

Please use the following to answer the next question:

Natalia, CFO of the Nationwide Grill restaurant chain, had never seen her fellow executives so anxious. Last

week, a data processing firm used by the company reported that its system may have been hacked, and

customer data such as names, addresses, and birthdays may have been compromised. Although the attempt

was proven unsuccessful, the scare has prompted several Nationwide Grill executives to question the

company's privacy program at today's meeting.

Alice, a vice president, said that the incident could have opened the door to lawsuits, potentially damaging

Nationwide Grill's market position. The Chief Information Officer (CIO), Brendan, tried to assure her that even if

there had been an actual breach, the chances of a successful suit against the company were slim. But Alice

remained unconvinced.

Spencer – a former CEO and currently a senior advisor – said that he had always warned against the use of

contractors for data processing. At the very least, he argued, they should be held contractually liable for telling

customers about any security incidents. In his view, Nationwide Grill should not be forced to soil the company

name for a problem it did not cause.

One of the business development (BD) executives, Haley, then spoke, imploring everyone to see reason.

"Breaches can happen, despite organizations' best efforts," she remarked. "Reasonable preparedness is key."

She reminded everyone of the incident seven years ago when the large grocery chain Tinkerton's had its

financial information compromised after a large order of Nationwide Grill frozen dinners. As a long-time BD

executive with a solid understanding of Tinkerton's's corporate culture, built up through many years of

cultivating relationships, Haley was able to successfully manage the company's incident response.

Spencer replied that acting with reason means allowing security to be handled by the security functions within

the company – not BD staff. In a similar way, he said, Human Resources (HR) needs to do a better job training

employees to prevent incidents. He pointed out that Nationwide Grill employees are overwhelmed with posters,

emails, and memos from both HR and the ethics department related to the company's privacy program. Both

the volume and the duplication of information means that it is often ignored altogether.

Spencer said, "The company needs to dedicate itself to its privacy program and set regular in-person trainings

for all staff once a month."

Alice responded that the suggestion, while well-meaning, is not practical. With many locations, local HR

departments need to have flexibility with their training schedules. Silently, Natalia agreed.

Based on the scenario, Nationwide Grill needs to create better employee awareness of the company's privacy

program by doing what?

A : Varying the modes of communication

B : Communicating to the staff more often

C : Improving inter-departmental cooperation

D : Requiring acknowledgment of company memos

Answer: D

Free Practice IAPP CIPM Exam Questions 2026