CIPM Exam Dumps | MULTI-SELECT - Select 3 A multinational manufacturing company is considering outsourcing its HR data

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IAPP.CIPM.v2026-06-25.q107
Question 18

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Question 18/107

MULTI-SELECT - Select 3
A multinational manufacturing company is considering outsourcing its HR data processing to a third-party vendor based in a country with less strict data protection laws. The company has a large database of employee information, including personal and sensitive data such as national ID numbers, medical information and employment contracts. The third-party vendor has a reputation for providing cost-effective services and has assured the company that it can handle the data securely.
The data protection officer (DPO) should ensure which of the following contractual requirements are included in the agreement with the third-party vendor?

A. How a breach would be handled.

B. How the vendor is insured.

C. How data transfers take place.

D. How appropriate security will be maintained.

E. How the cost of doing business will be reduced.

Correct Answer: A,C,D

CIPM requires that contracts with third-party processors include provisions addressing breach notification and response, mechanisms for lawful data transfers, and technical and organizational security measures
. Insurance coverage and cost reduction are business considerations and are not mandatory privacy contractual requirements.

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