Top 100 CIPM Exam Practice Questions and Answers
Data breaches make headlines every day, and earning consumer trust has never been harder. That’s why privacy management has become a non-negotiable business priority. Laws like GDPR and CCPA are changing how businesses handle personal data, and companies are searching for skilled professionals to lead strong privacy programs.
That’s where the Certified Information Privacy Manager (CIPM) comes in and helps develop a strong real-world approach to data protection. As the gold standard for privacy experts, CIPM gives professionals the expertise to tackle compliance challenges and build solid data protection strategies. Recent data shows that organizations with Certified Privacy Managers experience 30% fewer regulatory failures, which is a clear dominance in the privacy world.
If you’re preparing for the CIPM exam, you’re on the right track. Below are 100 practice questions carefully crafted to test and reinforce your knowledge in preparation for exam day. Let’s get started!
Top 100 CIPM Exam Practice Questions and Answers
1. In privacy law, what term best describes the ability to demonstrate an organization’s compliance with applicable laws?
A. Accountability
B. Privacy governance
C. Privacy framework
D. Data mapping​
Answer: A. Accountability
2. During which phase of privacy governance does an organization identify the personal information it processes and determine related privacy obligations?​
A. Selecting a privacy framework
B. Developing a privacy strategy
C. Defining privacy program scope
D. Structuring the privacy team​
Answer: C. Defining privacy program scope
3. Which privacy team model offers the greatest flexibility and sense of ownership but requires the most time to implement successfully?​
A. Centralized
B. Hybrid
C. Local
D. Sectoral​
Answer: B. Hybrid
4. Under the GDPR, which role is responsible for overseeing data protection strategy and compliance within an organization?​
A. Chief Information Officer (CIO)
B. Data Protection Officer (DPO)
C. Chief Executive Officer (CEO)
D. Privacy Program Manager​
Answer: B. Data Protection Officer (DPO)
5. Which of the following is a key principle of the GDPR?​
A. Data localization
B. Data minimization
C. Data monetization
D. Data centralization​
Answer: B. Data minimization
6. What does the term “privacy by design” refer to?​
A. Integrating privacy measures into systems during the development phase
B. Implementing privacy policies after system deployment
C. Designing user interfaces with privacy settings
D. Conducting privacy audits annually​
Answer: A. Integrating privacy measures into systems during the development phase
7. Which document serves as a formal declaration of an organization’s commitment to data protection and outlines how personal data is handled?​
A. Privacy impact assessment
B. Data protection policy
C. Information security policy
D. Data retention schedule​
Answer: B. Data protection policy
8. In the context of data privacy, what does the principle of “data minimization” entail?​
A. Collecting as much data as possible to ensure comprehensive analysis.
B. To ensure compliance and protect privacy, collect only what’s essential, no more, no less.
C. Anonymizing all collected data to protect individual identities.
D. Storing data for the maximum duration allowed by law to facilitate future research.
Answer: B. To ensure compliance and protect privacy, collect only what’s essential, no more, no less.
9. Which of the following is NOT a lawful basis for processing personal data under the GDPR?​
A. Consent from the data subject
B. Performance of a contract
C. Legitimate interests pursued by the data controller
D. Potential future benefits to the data subject​
Answer: D. Potential future benefits to the data subject
10. Under the GDPR, which right allows individuals to obtain a copy of their personal data from a data controller?​
A. Right to be forgotten
B. Right to data portability
C. Right to object
D. Right to rectification
Answer: B. Right to data portability
11. Which of the following actions is required when a data breach poses a high risk to the rights and freedoms of individuals?​
A. Notify the affected individuals without undue delay.
B. Wait for the supervisory authority’s guidance before taking any action.
C. Document the breach internally without notifying external parties.
D. Issue a public press release detailing the breach.
Answer: A. Notify the affected individuals without undue delay.
12. What is the primary role of a Privacy Program Manager in an organization?
A. Implementing cybersecurity controls
B. Managing and overseeing the organization’s privacy framework
C. Writing privacy laws and regulations
D. Monitoring all IT-related risks
Answer: B. Managing and overseeing the organization’s privacy framework
13. Which of the following is a key component of a privacy framework?
A. Stakeholder buy-in
B. Increasing marketing ROI
C. Expanding customer profiling
D. Blocking all third-party access to data
Answer: A. Stakeholder buy-in
14. Which of the following is NOT considered personal data under GDPR?
A. Email address
B. Home address
C. Employee ID number
D. Publicly available stock prices
Answer: D. Publicly available stock prices
15. Under GDPR, what is the maximum fine for serious data protection violations?
A. €1 million
B. 2% of annual global revenue
C. A staggering penalty, 4% of global revenue or €20 million, whichever is higher
D. €100,000
Answer: C. A staggering penalty, 4% of global revenue or €20 million, whichever is higher
16. Which document outlines an organization’s general approach to data privacy?
A. Privacy policy
B. Security audit report
C. Employee handbook
D. Data breach notification
Answer: A. Privacy policy
17. Who is primarily responsible for ensuring an organization’s compliance with data protection laws?
A. Data Protection Officer (DPO)
B. Chief Marketing Officer (CMO)
C. Chief Financial Officer (CFO)
D. Customer Service Representative
Answer: A. Data Protection Officer (DPO)
18. What is the primary purpose of data retention policies?
A. To keep all data indefinitely
B. To store only personal data
C. To define how long data should be stored before deletion
D. To ensure data is transferred to third parties
Answer: C. To define how long data should be stored before deletion
19. Which of the following best describes pseudonymization?
A. Encrypting data permanently
B. Replacing personal identifiers with unique codes
C. Deleting data from a system
D. Restricting access to databases
Answer: B. Replacing personal identifiers with unique codes
20. What is the primary function of a Record of Processing Activities (RoPA) under GDPR?
A. To document all processing activities and their purposes
B. To track employee performance in handling personal data
C. To store all collected personal data indefinitely
D. To replace the need for a Data Protection Impact Assessment (DPIA)
Answer: A. To document all processing activities and their purposes
21. What does the concept of “Purpose Limitation” under GDPR refer to?
A. Restricting access to data by employees
B. Ensuring personal data is collected only for specified, explicit, and legitimate purposes
C. Preventing personal data from being used for marketing purposes
D. Automatically deleting personal data after processing
Answer: B. Ensuring personal data is collected only for specified, explicit, and legitimate purposes
22. Under GDPR, which right allows individuals to object to their data being processed for direct marketing purposes?
A. Right to rectification
B. Right to restriction
C. Right to object
D. Right to data portability
Answer: C. Right to object
23. What is a primary consideration when transferring personal data outside the European Economic Area (EEA)?
A. The recipient country must have an adequacy decision or appropriate safeguards
B. The data subject must approve each transfer individually
C. Personal data can be transferred freely without restrictions
D. All transfers must be encrypted
Answer: A. The recipient country must have an adequacy decision or appropriate safeguards
24. Which of the following is an example of a technical security measure for protecting personal data?
A. Employee privacy training
B. Access control and encryption
C. Data retention policies
D. Contractual agreements with third parties
Answer: B. Access control and encryption
25. When must an organization report a data breach under GDPR?
A. Within 12 hours
B. Within 72 hours
C. Within 30 days
D. Only if customers ask
Answer: B. Within 72 hours
26. Which of the following is an example of sensitive personal data?
A. Phone number
B. National ID number
C. Political opinions
D. Work email address
Answer: C. Political opinions
27. What is the purpose of a Privacy Impact Assessment (PIA)?
A. To evaluate the privacy risks of data processing activities
B. To conduct financial audits
C. To track customer engagement
D. To monitor website traffic
Answer: A. To evaluate the privacy risks of data processing activities
28. Which privacy model centralizes decision-making for data protection?
A. Decentralized
B. Centralized
C. Hybrid
D. Outsourced
Answer: B. Centralized
29. What is the role of a privacy notice?
A. To inform individuals about how their data is collected, used, and stored
B. To grant businesses ownership of all collected data
C. To prevent data collection entirely
D. To automate data deletion
Answer: A. To inform individuals about how their data is collected, used, and stored
30. What is a legitimate interest under GDPR?
A. A reason to process personal data based on business needs
B. The right to sell data
C. A requirement to store data indefinitely
D. A form of user consent
Answer: A. A reason to process personal data based on business needs
31. What is the primary purpose of conducting a data inventory within an organization?
A. To assess the financial value of data assets
B. To identify and document the types of personal data processed
C. To monitor employee productivity
D. To track the physical location of data servers
Answer: B. To identify and document the types of personal data processed
32. Which of the following best describes the concept of ‘data subject rights’ under GDPR?
A. Permissions granted to organizations to process personal data​
B. Standards for data security measures
C. Obligations of data processors in handling data breaches
D. Individuals have rights regarding their personal data
Answer: D. Individuals have rights regarding their personal data.​
33. In the context of privacy program management, what does ‘accountability’ entail?
A. Assigning blame for data breaches
B. Ensuring data subjects are aware of their rights
C. Delegating data protection tasks to external vendors​
D. Demonstrating compliance with data protection laws
Answer: D. Demonstrating compliance with data protection laws
34. What is the main objective of implementing ‘Privacy by Default’ settings in systems and services?
A. To maximize data collection for marketing purposes
B. To ensure the strictest privacy settings are applied automatically
C. To allow users to opt-in to data sharing
D. To simplify user interfaces​
Answer: B. To ensure the strictest privacy settings are applied automatically.​
35. In the event of a personal data breach, what is the first action an organization should take?
A. Notify the affected individuals immediately
B. Delete all compromised data
C. Inform the media
D. Assess the risk to individual’s rights and freedoms
Answer: D. Assess the risk to an individual’s rights and freedoms
36. What is the role of a ‘data processor’ under GDPR?
A. An entity that determines the purposes and means of processing personal data​
B. An individual who consents to data processing activities
C. An entity that processes personal data on behalf of the data controller
D. A regulatory body overseeing data protection compliance
Answer: C. An entity that processes personal data on behalf of the data controller
37. What is the primary objective when establishing a centralized data governance model in privacy program management?
A. To enhance personalized training for each department
B. To allow individual departments to set their own privacy policies
C. To unify privacy policy enforcement across an entire organization
D. To decrease the organization’s overall compliance costs
Answer: C. To unify privacy policy enforcement across an entire organization
38. In the context of defining a privacy program’s scope and Charter, why is it critical to align organizational culture with privacy and data protection objectives?
A. To simplify legal compliance
B. To ensure all employees disregard privacy standards
C. To foster an environment where privacy is valued and integrated into daily operations
D. Only to satisfy external audit requirements
Answer: C. To foster an environment where privacy is valued and integrated into daily operations
39. Which strategy is most effective when structuring the Privacy team in order to handle privacy issues efficiently?
A. Assigning all responsibilities to a single privacy officer
B. Designating a point of contact for privacy issues within each department
C. Limiting privacy training to Senior Management
D. Avoiding the establishment of a formal privacy team structure
Answer: B. Designating a point of contact for privacy issues within each department
40. Why is it necessary to obtain executive sponsor approval for a privacy program’s Vision?
A. To ensure the program does not align with organizational objectives
B. Because it is a formality that has no impact on the program’s success
C. To secure the necessary support and resources for implementation
D. Only to increase the workload of the executive team
Answer: A. To secure the necessary support and resources for implementation
41. What is the significance of developing a flexible privacy strategy to accommodate legislative, regulatory, market, and business changes?
A. To limit the scope of the privacy program
B. To ensure the Privacy program remains rigid and unchangeable
C. To allow the program to adapt and remain effective amid changing external conditions
D. To prevent any updates to the program once it is initially implemented
Answer: C. To allow the program to adapt and remain effective amid changing external conditions
42. In the context of aligning organizational culture with privacy and data protection objectives, why is it crucial to leverage key functions within the organization during the development of a privacy strategy?
A. To minimize the influence of the Privacy team
B. To isolate the Privacy program from other business areas
C. To integrate privacy considerations seamlessly into business processes and decision-making
D. To focus solely on external compliance without internal support
Answer: C. To integrate privacy considerations seamlessly into business processes and decision-making
43. Which component is essential when defining privacy program activities for compliance monitoring?
A. Developing IT infrastructure
B. Regular privacy audits
C. Frequent changes to privacy policies
D. Reduction of data use
Answer: B. Regular privacy audits
44. In a privacy program framework, what is the role of incident response plans?
A. Preventing privacy incidents
B. Training employees on privacy laws
C. Responding to and managing privacy breaches effectively
D. Conducting risk assessments
Answer: C. Responding to and managing privacy breaches effectively
45. What is the primary responsibility of a Chief Privacy Officer (CPO) in an organization?
A. Managing IT security infrastructure
B. Overseeing privacy governance and compliance strategy
C. Handling customer service complaints
D. Developing marketing data strategies
Answer: B. Overseeing privacy governance and compliance strategy
46. Under GDPR, what is the primary role of a Data Processing Agreement (DPA) between a data controller and a processor?
A. To allow unlimited data transfers
B. To define data protection obligations and responsibilities
C. To ensure data portability between controllers
D. To replace the need for a privacy policy
Answer: B. To define data protection obligations and responsibilities
47. What factors should an organization consider when determining the lawful basis for processing personal data under GDPR?
A. The business’s revenue goals
B. The individual’s rights and expectations
C. The need for customer engagement
D. The length of time data is stored
Answer: B. The individual’s rights and expectations
48. What is the purpose of the ‘Right to Restriction of Processing’ under GDPR?
A. To allow individuals to suspend processing of their data under specific conditions
B. To delete all personal data immediately upon request
C. To grant full control of personal data to regulators
D. To prevent companies from storing personal data
Answer: A. To allow individuals to suspend processing of their data under specific conditions
49. Which GDPR principle ensures that organizations only store personal data for as long as necessary?
A. Storage Limitation
B. Purpose Limitation
C. Lawfulness of Processing
D. Data Portability
Answer: A. Storage Limitation
50. Which document details the legal basis for processing data and ensures compliance with GDPR?
A. Employee Handbook
B. Privacy Notice
C. Data Breach Report
D. Record of Processing Activities (RoPA)
Answer: D. Record of Processing Activities (RoPA)
51. Why is it important to regularly update a privacy program’s risk assessment?
A. To align with evolving threats and regulatory changes
B. To increase data collection practices
C. To eliminate the need for privacy training
D. To ensure data is stored indefinitely
Answer: A. To align with evolving threats and regulatory changes
52. What is a key factor in ensuring a privacy program is effectively implemented across an organization?
A. Restricting privacy initiatives to legal teams
B. Limiting access to privacy policies
C. Focusing only on IT security
D. Cross-departmental collaboration
Answer: D. Cross-departmental collaboration
53. Why is it important for organizations to establish clear retention schedules for personal data?
A. To comply with GDPR’s data retention principles
B. To increase storage efficiency
C. To simplify marketing processes
D. To prevent users from accessing their data
Answer: A. To comply with GDPR’s data retention principles
54. How does continuous alignment with laws and regulations influence a privacy program framework?
A. It reduces the need for employee training.
B. It ensures the program adapts to changes in the privacy landscape.
C. It decreases the organization’s data processing capabilities.
D. It increases the reliance on technology solutions.
Answer: B. It ensures the program adapts to changes in the privacy landscape.
55. What does the legislative branch of the US government do in the context of privacy?
A. Enforces privacy laws
B. Interprets privacy law
C. Regulates privacy standards
D. Enacts laws impacting privacy
Answer: D. Enacts laws impacting privacy
56. Why is data inventory management critical in a privacy program framework?
A. It ensures all software is up to date.
B. It facilitates targeted marketing efforts.
C. It helps identify all data processing activities and their purposes.
D. It reduces its operational costs.
Answer: C. It helps identify all data processing activities and their purposes.
57. Which strategy is most effective for communicating a privacy framework to external stakeholders?
A. Using technical jargon to describe policies
B. Regularly updating privacy policies without notification
C. Transparency and clear communication
D. Limiting information about data processing activities
Answer: C. Transparency and clear communication
58. What is the role of remediation oversight in a privacy program framework?
A. To ensure that all data is encrypted
B. To monitor the effectiveness of the incident response
C. To oversee the correction of identified privacy issues
D. To reduce the number of data subjects
Answer: C. To oversee the correction of identified privacy issues
59. Why is it important for a privacy program to have flexibility in incorporating legislative changes?
A. To avoid training employees frequently
B. To increase data storage capabilities
C. To adapt to evolving privacy laws and regulations
D. To decrease operational costs
Answer: C. To adapt to evolving privacy laws and regulations
60. What is the significance of international data sharing agreements in a privacy program framework?
A. They ensure all employees have access to personal data
B. They help standardize the hardware used across the organization
C. They govern the cross-border transfer of personal data
D. They reduce the need for privacy audits
Answer: C. They govern the cross-border transfer of personal data
61. How do privacy metrics aid an organization in a privacy program framework?
A. By eliminating the need for compliance audits
B. By providing insights into the effectiveness of the Privacy program
C. By reducing the volume of personal data processed
D. By increasing the speed of data processing
Answer: B. By providing insights into the effectiveness of the Privacy program
62. Which outcome is a direct benefit of conducting regular privacy training and awareness programs?
A. Decreased need for IT infrastructure
B. Increased awareness and compliance among employees
C. Reduced marketing effectiveness
D. Increased data storage requirements
Answer: B. Increased awareness and compliance among employees
63. What role does risk assessment play in the development of a privacy program framework?
A. It is used only after a data breach occurs.
B. It predicts the future technologies the organization will use.
C. It identifies potential vulnerabilities and threats to personal data.
D. It focuses solely on external threats.
Answer: C. It identifies potential vulnerabilities and threats to personal data.
64. In the context of a privacy program framework, why is incident detection an essential component?
A. It ensures all data is publicly accessible.
B. It allows organizations to respond promptly to data breaches.
C. It is only necessary for the IT departments.
D. It increases the effectiveness of data processing.
Answer: B. It allows organizations to respond promptly to data breaches.
65. Why is the alignment of a privacy program with business objectives important?
A. It ensures the privacy program is seen as a business enabler rather than a cost center.
B. It is only required for a technology company.
C. It decreases Employee Engagement.
D. It increases the complexity of the program.
Answer: A. It ensures the privacy program is seen as a business enabler rather than a cost center.
66. What is the primary benefit of having a dynamic and adaptable privacy program?
A. It requires less frequent auditing.
B. It ensures the program can rapidly adjust to changes in technology and business processes.
C. It allows the organization to decrease its use of digital Technologies.
D. It ensures that all data is stored indefinitely.
Answer: B. It ensures the program can rapidly adjust to changes in technology and business processes.
67. What is the impact of failing to communicate the Privacy framework to stakeholders effectively?
A. Increased regulatory compliance
B. Enhanced understanding of privacy policies
C. Potential misunderstandings and lack of stakeholder buy-in
D. Reduced costs associated with privacy management
Answer: C. Potential misunderstandings and lack of stakeholder buy-in
68. Why is it important for a privacy program to include mechanisms for handling inquiries and complaints from data subjects?
A. To ensure all complaints are ignored
B. To comply with regulations that grant data subjects rights over their personal data
C. To increase the data collected by the organization
D. To reduce transparency with Regulators
Answer: B. To comply with regulations that grant data subjects rights over their personal data
69. What is the primary purpose of conducting a Data Systems and process assessment in a privacy program?
A. To ensure data confidentiality only
B. To monitor employee activities
C. To focus solely on external threats
D. To map data inventories and understand data flows
Answer: D. To map data inventories and understand data flows
70. Which of the following best describes the goal of risk assessment methods within the privacy operation life cycle?
A. Analyzing and managing risks related to personal data
B. Minimizing operational costs
C. Implementing IT solutions
D. Creating privacy policies
Answer: A. Analyzing and managing risks related to personal data
71. In a privacy program Gap analysis, what is the primary objective?
A. To evaluate the performance of the IT department
B. To reduce the number of privacy complaints from customers
C. To assess employee knowledge of privacy
D. To identify discrepancies between current practices and regulatory requirements
Answer: D. To identify discrepancies between current practices and regulatory requirements
72. What is a key component of physical assessments in the Privacy operational life cycle?
A. Reviewing the annual budget of the organization
B. Conducting employee satisfaction surveys
C. Ensuring appropriate physical access controls are in place
D. Updating the organization’s mission and vision statements
Answer: C. Ensuring appropriate physical access controls are in place
73. What does a privacy incident management process primarily aim to address?
A. Employee training programs
B. Data breach response and remediation
C. Marketing strategies
D. Financial auditing
Answer: B. Data breach response and remediation
74. In the context of privacy assessments, why is the documentation of all privacy assessments essential?
A. It is only necessary for training purposes.
B. It fulfills a legal requirement to keep business records.
C. It ensures accountability and transparency in privacy practices.
D. It aids in marketing analysis.
Answer: C. It ensures accountability and transparency in privacy practices.
75. What is the main focus of the education and awareness component in assessing a privacy program?
A. To negotiate better terms with data processes
B. To ensure all employees understand their role in protecting privacy
C. To focus on technology improvements
D. To satisfy external audit requirements
Answer: B. To ensure all employees understand their role in protecting privacy
76. How does monitoring the regulatory environment impact a privacy program?
A. It has no significant impact.
B. It ensures the program remains static and unchanged.
C. It helps the program adapt to new legal requirements.
D. It reduces the need for internal policies.
Answer: C. It helps the program adapt to new legal requirements.
77. Why is vendor internal use of personal information a critical assessment area in third-party vendor management?
A. It determines the financial stability of the vendor.
B. It assesses how vendors use and protect client personal information within their operations.
C. It is unrelated to privacy management.
D. It ensures vendors have an attractive branding.
Answer: B. It assesses how vendors use and protect client personal information within their operations.
78. Which aspect of a privacy program is directly evaluated through an assessment of Incident management response and remediation?
A. The effectiveness of the marketing strategies.
B. The speed and efficiency of response to privacy breaches.
C. The annual budget allocations for privacy management.
D. The level of customer service training.
Answer: B. The speed and efficiency of response to privacy breaches.
79. What is the primary reason for performing a gap analysis against an accepted standard or law such as GDPR in privacy program assessments?
A. To standardize the organization’s branding strategies
B. To identify and address deficiencies in the organization’s compliance with the standard or law
C. To facilitate international trade
D. To simplify employee training modules
Answer: B. To identify and address deficiencies in the organization’s compliance with the standard or law
80. In the context of data systems and process assessments, what does mapping data inventories, flows, life cycle, and system integrations help achieve?
A. It helps in understanding how personal data is handled and identifying potential vulnerabilities.
B. It primarily assists with employee performance evaluations.
C. It is used for deciding executive bonuses.
D. It supports the IT department in Hardware upgrades.
Answer: A. It helps in understanding how personal data is handled and identifying potential vulnerabilities.
81. Why is ongoing monitoring and auditing of third-party vendors crucial for maintaining a privacy program’s integrity?
A. It ensures continuous improvement in the quality of cafeteria food.
B. It ensures that vendors consistently adhere to agreed privacy standards over the duration of their contracts.
C. It is primarily intended to create additional work for the IT department.
D. It helps in boosting the stock market performance of the company.
Answer: B. It ensures that vendors consistently adhere to agreed privacy standards over the duration of their contracts.
82. What is the main benefit of having a robust incident management response and remediation process within a privacy program?
A. It facilitates a more relaxed approach to data management.
B. It helps in reducing the effectiveness of the marketing department.
C. It is only beneficial for meeting audit requirements.
D. It ensures rapid and effective action in the event of data breaches, minimizing potential harm.
Answer: D. It ensures rapid and effective action in the event of data breaches, minimizing potential harm.
83. What is the primary purpose of implementing the principle of least privilege in an organizational setting?
A. To enhance user convenience
B. To reduce the risk of accidental or malicious data breaches
C. To increase system performance and reduce the cost of its management
D. To limit employee access to only necessary data and resources
Answer: B. To reduce the risk of accidental or malicious data breaches
84. Privacy by Design (PbD) requires privacy to be integrated at which stage of the system development life cycle?
A. Deployment
B. Testing
C. Design
D. Maintenance
Answer: C. Design
85. What does establishing privacy gates in the SDLC process entail?
A. Introducing mandatory breaks in the development process
B. Limiting the number of developers with access to sensitive information
C. Installing physical barriers in development environments
D. Setting specific points at which privacy reviews occur
Answer: D. Setting specific points at which privacy reviews occur
86. How does integrating privacy into business processes benefit an organization?
A. Reduces the need for employee training
B. Simplifies the IT infrastructure
C. Enhances compliance and operational efficiency
D. Decreases the need for monitoring tools
Answer: C. Enhances compliance and operational efficiency
87. Quantifying the costs of privacy controls assists an organization primarily by:
A. Facilitating strategic decision-making regarding resource allocation
B. Ensuring that no financial resources are allocated to IT security
C. Reducing the overall budget allocated to the Privacy program
D. Eliminating unnecessary privacy controls
Answer: A. Facilitating strategic decision-making regarding resource allocation
88. Data retention policies should be based on:
A. The preferences of the IT department
B. The latest technology trends
C. Legal requirements and business needs
D. The personal judgment of employees
Answer: C. Legal requirements and business needs
89. Which method is not a recommended practice for the secure destruction of electronic data?
A. Leaving data on unused devices in secure storage
B. Physical destruction of storage media
C. Overwriting data with random data
D. Using certified data wiping software
Answer: A. Leaving data on unused devices in secure storage
90. The role of Administrative Safeguards in a privacy program is to:
A. Oversee the development of policies and procedures
B. Directly block cyber attacks
C. Manage physical access to buildings
D. Handle technical aspects of data protection
Answer: A. Oversee the development of policies and procedures
91. In the context of privacy, secondary use of data refers to its use:
A. For the same purpose for which it was originally collected
B. For an alternative purpose not disclosed at the time of collection
C. After it has been deleted from the primary database
D. Before it is officially recorded in the data system
Answer: B. For an alternative purpose not disclosed at the time of collection
92. Why is it important to define roles and responsibilities for data management within an organization?
A. To ensure data is used for marketing purposes
B. To eliminate the need for data encryption
C. To clarify who is accountable for various data protection tasks
D. To facilitate unrestricted data access
Answer: C. To clarify who is accountable for various data protection tasks
93. What impact does integrating privacy requirements across functional areas have on organizational risk management?
A. Increases risk due to added complexity
B. Decreases risk by spreading accountability too thin
C. Decreases risk through comprehensive governance
D. Increases risk by centralizing control
Answer: C. Decreases risk through comprehensive governance
94. Which of the following is not a standard component of a privacy incident response plan?
A. Lessons Learned
B. Employee termination procedures
C. Risk assessment
D. Containment strategies
Answer: B. Employee termination procedures
95. What is the purpose of the Privacy Shield Framework?
A. To regulate data sharing within the European Union only
B. To facilitate data transfers between the EU and the U.S. while ensuring compliance with privacy laws
C. To provide cybersecurity guidelines for financial institutions
D. To protect national security by restricting data access
Answer: B. To facilitate data transfers between the EU and the U.S. while ensuring compliance with privacy laws
96. Which privacy regulation mandates organizations to appoint a representative within the EU if they process EU citizens’ data but have no presence in the EU?
A. The California Consumer Privacy Act (CCPA)
B. The Children’s Online Privacy Protection Act (COPPA)
C. The General Data Protection Regulation (GDPR)
D. The Personal Data Protection Bill (PDPB)
Answer: C. The General Data Protection Regulation (GDPR)
97. What is the key objective of a Privacy Operations Center (POC)?
A. To serve as a centralized hub for monitoring, responding to, and mitigating privacy risks
B. To enforce cybersecurity policies within an IT department
C. To provide public awareness campaigns about online privacy risks
D. To replace the need for a Data Protection Officer (DPO)
Answer: A. To serve as a centralized hub for monitoring, responding to, and mitigating privacy risks
98. How does the ‘Schrems II’ ruling impact international data transfers?
A. It invalidated the Privacy Shield framework between the EU and the U.S.
B. It allowed free data transfers between the EU and all non-EU countries.
C. It required companies to obtain explicit consent before transferring any data globally.
D. It removed the need for Standard Contractual Clauses (SCCs).
Answer: A. It invalidated the Privacy Shield framework between the EU and the U.S.
99. Which of the following describes the purpose of the ISO/IEC 27701 standard?
A. It provides guidance on establishing, implementing, maintaining, and improving a Privacy Information Management System (PIMS).
B. It establishes security controls for financial transactions.
C. It regulates cloud service providers’ data retention policies.
D. It enforces mandatory biometric authentication for all data processing activities.
Answer: A. It provides guidance on establishing, implementing, maintaining, and improving a Privacy Information Management System (PIMS).
100. In the context of AI and data privacy, what is a major challenge organizations face?
A. Ensuring AI systems are programmed without any errors
B. Preventing AI models from making decisions without human intervention
C. Mitigating risks related to bias, explainability, and compliance with privacy laws
D. Developing AI systems that function without requiring personal data
Answer: C. Mitigating risks related to bias, explainability, and compliance with privacy laws
CIPM with InfosecTrain
Mastering the CIPM (Certified Information Privacy Manager) exam requires a solid understanding of privacy program governance, risk assessment, operational lifecycle management, and compliance strategies. By practicing these Top 100 CIPM Exam Questions and Answers, you can enhance your confidence and improve your ability to tackle real-world privacy management scenarios effectively.
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TRAINING CALENDAR of Upcoming Batches For CIPM
| Start Date | End Date | Start - End Time | Batch Type | Training Mode | Batch Status | |
|---|---|---|---|---|---|---|
| 10-Jan-2026 | 25-Jan-2026 | 09:00 - 13:00 IST | Weekend | Online | [ Open ] | |
| 04-Apr-2026 | 19-Apr-2026 | 09:00 - 13:00 IST | Weekend | Online | [ Open ] |