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NEW QUESTION 54
SCENARIO
Please use the following to answer the next QUESTION
Otto is preparing a report to his Board of Directors at Filtration Station, where he is responsible for the privacy program. Filtration Station is a U.S. company that sells filters and tubing products to pharmaceutical companies for research use. The company is based in Seattle, Washington, with offices throughout the U.S. and Asi a. It sells to business customers across both the U.S. and the Asia-Pacific region. Filtration Station participates in the Cross-Border Privacy Rules system of the APEC Privacy Framework.
Unfortunately, Filtration Station suffered a data breach in the previous quarter. An unknown third party was able to gain access to Filtration Station’s network and was able to steal data relating to employees in the company’s Human Resources database, which is hosted by a third-party cloud provider based in the U.S. The HR data is encrypted. Filtration Station also uses the third-party cloud provider to host its business marketing contact database. The marketing database was not affected by the data breach. It appears that the data breach was caused when a system administrator at the cloud provider stored the encryption keys with the data itself.
The Board has asked Otto to provide information about the data breach and how updates on new developments in privacy laws and regulations apply to Filtration Station. They are particularly concerned about staying up to date on the various U.S. state laws and regulations that have been in the news, especially the California Consumer Privacy Act (CCPA) and breach notification requirements.
What can Otto do to most effectively minimize the privacy risks involved in using a cloud provider for the HR data?
- A. Negotiate a Business Associate Agreement with the cloud provider to protect any health-related data employees might share with Filtration Station.
- B. Ensure that the cloud provider abides by the contractual requirements by conducting an on-site audit.
- C. Request that the Board sign off in a written document on the choice of cloud provider.
- D. Obtain express consent from employees for storing the HR data in the cloud and keep a record of the employee consents.
Answer: B
NEW QUESTION 55
SCENARIO
Please use the following to answer the next QUESTION:
You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A.
HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients.
A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B.
As part of HealthCo’s business associate agreement (BAA) with CloudHealth, HealthCo requires CloudHealth to implement security measures, including industry standard encryption practices, to adequately protect the data. However, HealthCo did not perform due diligence on CloudHealth before entering the contract, and has not conducted audits of CloudHealth’s security measures.
A CloudHealth employee has recently become the victim of a phishing attack. When the employee unintentionally clicked on a link from a suspicious email, the PHI of more than 10,000 HealthCo patients was compromised. It has since been published online.
The HealthCo cybersecurity team quickly identifies the perpetrator as a known hacker who has launched similar attacks on other hospitals – ones that exposed the PHI of public figures including celebrities and politicians.
During the course of its investigation, HealthCo discovers that CloudHealth has not encrypted the PHI in accordance with the terms of its contract. In addition, CloudHealth has not provided privacy or security training to its employees.
Law enforcement has requested that HealthCo provide its investigative report of the breach and a copy of the PHI of the individuals affected.
A patient affected by the breach then sues HealthCo, claiming that the company did not adequately protect the individual’s ePHI, and that he has suffered substantial harm as a result of the exposed data. The patient’s attorney has submitted a discovery request for the ePHI exposed in the breach.
Which of the following would be HealthCo’s best response to the attorney’s discovery request?
- A. Respond with a redacted document only relative to the plaintiff
- B. Reject the request because the HIPAA privacy rule only permits disclosure for payment, treatment or healthcare operations
- C. Respond with a request for satisfactory assurances such as a qualified protective order
- D. Turn over all of the compromised patient records to the plaintiff’s attorney
Answer: D
NEW QUESTION 56
What is a reason the European Court of Justice declared the Data Retention Directive invalid in 2014?
- A. The requirements had limitations on how national authorities could use data.
- B. The requirements were financially burdensome to EU businesses.
- C. The requirements affected individuals without exception.
- D. The requirements specified that data must be held within the EU.
Answer: A
NEW QUESTION 57
All of the following are tasks in the “Discover” phase of building an information management program EXCEPT?
- A. Facilitating participation across departments and levels
- B. Understanding the laws that regulate a company’s collection of information
- C. Developing a process for review and update of privacy policies
- D. Deciding how aggressive to be in the use of personal information
Answer: B
NEW QUESTION 58
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