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Q1.

By collecting, storing, and processing personal information on living individuals electronically, Star Link Company could qualify as:

Answer: B


See the explanation below.

Data Controller An organization that determines means and purpose for data processing is called a Data Controller. It may or may not be the organization that directly collects PI from a data subject but, is accountable for PI usage, security, etc. All organizations are Data Controllers by default for their employees' PI. Data Processor An organization that processes PI based on instructions of Data Controllers. In some instances, it may also be the organization that collect PI directly from the individuals, on behalf of Data Controller. A BPM organization processing personal information on behalf of clients would be a data processor. Similarly, a sales agent for a bank would also come under this category.


Q2.

Health insurance firm based in the US uses BPM services provided by an Indian company. It was found that one of the employees of the Indian company exported customer data of the insurance company to another US-based insurance company. Under which of the below ground, the company and its executives in India were also subjected to legal action ?

Answer: B


See the explanation below.

Health Insurance Portability and Accountability Act (HIPAA) Defines two types of controls -- required and addressable. Required controls are mandatory for covered entities but for 'addressable' controls entities need to assess whether each implementation specification is a reasonable and appropriate safeguard in its environment, when analyzed with reference to the likely contribution to protecting the entity's electronic protected health information.


Q3.

Among the following, which of the following is classified as the most important reason for enacting data protection/privacy laws around the world?

Answer: A
Q4.

Historically, which of these events led to the formation of our current concept of privacy?

Answer: C


See the explanation below.

Following are the overview of global evolution of Privacy: 1890 - Right to be left alone 1940 - Fundamental civil liberty 1948 - Universal Declaration of Human Rights 1967 - modern definition, claim of individual 1980 - OECD Privacy Principles


Q5.

The development of the OECD's privacy principles for promoting free international trade and international data flows came from which of the following?

Answer: A


See the explanation below.

The earliest formal articulation of Privacy Principles was the formulation of the Code of Fair Information Practices (also known as Code of Fair Information Principles or FIPS) in the US in 1974. These are also sometimes referred to as Fair Information Privacy Principles or FIPPs as well. Initially, five principles were laid down which evolved to eight by 1977. These were developed by a US government advisory committee under the Department of Health, Education and Welfare (HEW) and subsequently augmented by a Privacy Protection Study Commission (PPSC). FIPs were developed and evolved in response to the growing use of automated data systems containing information about individuals - maintained by both public and private sector organizations In parallel, there was action in Europe as well. In the 1970s, European nations began to enact privacy laws beginning with Sweden, Germany and then France. By 1980, the Council of Europe adopted a Convention for the Protection of Individuals with Regard to Automatic Processing of Personal Data. The Convention was the first legally binding international treaty on data protection. The Organization for Economic Cooperation and Development (OECD) proposed similar privacy guidelines around the same time as the Council of Europe's original 1980 effort. A group of government experts developed the OECD Guidelines on the Protection of Privacy and Transborder Flows of Personal Data. The OECD adopted the recommendation, which became applicable on 23 September, 1980. Informally, these are known as the OECD Guidelines. OECD principles formed the basis of many national data protection legislations and model codes amongst the OECD countries. The OECD guidelines were endorsed by the US Federal Trade Commission (FTC) subsequently. They have gone on to become one of the most widely adopted guidelines in the privacy domain.


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