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NEW QUESTION 51
Please use the following to answer the next question:
Due to rapidly expanding workforce, Company A has decided to outsource its payroll function to Company B. Company B is an established payroll service provider with a sizable client base and a solid reputation in the industry.
Company B's payroll solution for Company A relies on the collection of time and attendance data obtained via a biometric entry system installed in each of Company A's factories. Company B won't hold any biometric data itself, but the related data will be uploaded to Company B's UK servers and used to provide the payroll service. Company B's live systems will contain the following information for each of Company A's employees:
Name
Address
Date of Birth
Payroll number
National Insurance number
Sick pay entitlement
Maternity/paternity pay entitlement
Holiday entitlement
Pension and benefits contributions
Trade union contributions
Jenny is the compliance officer at Company A. She first considers whether Company A needs to carry out a data protection impact assessment in relation to the new time and attendance system, but isn't sure whether or not this is required.
Jenny does know, however, that under the GDPR there must be a formal written agreement requiring Company B to use the time and attendance data only for the purpose of providing the payroll service, and to apply appropriate technical and organizational security measures for safeguarding the data. Jenny suggests that Company B obtain advice from its data protection officer. The company doesn't have a DPO but agrees, in the interest of finalizing the contract, to sign up for the provisions in full. Company A enters into the contract.
Weeks later, while still under contract with Company A, Company B embarks upon a separate project meant to enhance the functionality of its payroll service, and engages Company C to help. Company C agrees to extract all personal data from Company B's live systems in order to create a new database for Company B.
This database will be stored in a test environment hosted on Company C's U.S. server. The two companies agree not to include any data processing provisions in their services agreement, as data is only being used for IT testing purposes.
Unfortunately, Company C's U.S. server is only protected by an outdated IT security system, and suffers a cyber security incident soon after Company C begins work on the project. As a result, data relating to Company A's employees is visible to anyone visiting Company C's website. Company A is unaware of this until Jenny receives a letter from the supervisory authority in connection with the investigation that ensues. As soon as Jenny is made aware of the breach, she notifies all affected employees.
The GDPR requires sufficient guarantees of a company's ability to implement adequate technical and organizational measures. What would be the most realistic way that Company B could have fulfilled this requirement?

• A. Avoiding the use of another company's data to improve their own services.
• B. Requesting advice and technical support from Company A's IT team.
• C. Hiring companies whose measures are consistent with recommendations of accrediting bodies.
• D. Vetting companies' measures with the appropriate supervisory authority.

Answer: C

NEW QUESTION 52
Which change was introduced by the 2009 amendments to the e-Privacy Directive 2002/58/EC?

• A. A voluntary notification for personal data breaches applicable to electronic communication providers.
• B. A mandatory notification for personal data breaches applicable to electronic communication providers.
• C. A voluntary notification for personal data breaches applicable to all data controllers.
• D. A mandatory notification for personal data breaches applicable to all data controllers.

Answer: B

NEW QUESTION 53
If a multi-national company wanted to conduct background checks on all current and potential employees, including those based in Europe, what key provision would the company have to follow?

• A. Background checks on European employees will stem from data protection and employment law, which can vary between member states.
• B. Background checks on employees could be performed only under prior notice to all employees.
• C. Background checks may not be allowed on European employees, but the company can create lists based on its legitimate interests, identifying individuals who are ineligible for employment.
• D. Background checks are only authorized with prior notice and express consent from all employees including those based in Europe.

Answer: A

Explanation:
Explanation/Reference: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/ conductingbackgroundinvestigations.aspx

NEW QUESTION 54
What is the MAIN reason GDPR Article 4(22) establishes the concept of the "concerned supervisory authority"?

• A. To ensure that the interests of individuals residing outside the lead authority's jurisdiction are represented.
• B. To ensure the GDPR covers controllers that do not have an establishment in the EU but have a representative in a member state.
• C. To encourage the consistency of local data processing activity.
• D. To give corporations a choice about who their supervisory authority will be.

Answer: A

NEW QUESTION 55
What is one major goal that the OECD Guidelines, Convention 108 and the Data Protection Directive (Directive 95/46/EC) all had in common but largely failed to achieve in Europe?

• A. The establishment of a list of legitimate data processing criteria
• B. The restriction of cross-border data flow
• C. The creation of legally binding data protection principles
• D. The synchronization of approaches to data protection

Answer: D

Explanation:
Reference https://ico.org.uk/media/about-the-ico/documents/1042349/review-of-eu-dp-directive.pdf (99)

NEW QUESTION 56
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