CAMS · Question #3
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)
The correct answer is B. Industry of regulatory sanctions C. Charges of deceptive business practices. Having inadequate privacy policies and procedures can expose an organization to legal risks such as industry or regulatory sanctions and charges of deceptive business practices. Industry or regulatory sanctions can result from violating the laws and regulations that govern data…
Question
What are two legal risks of having inadequate privacy policies and procedures? (Choose two.)
Options
- ADiminished reputation
- BIndustry of regulatory sanctions
- CCharges of deceptive business practices
- DHigher marketing and public relations costs
How the community answered
(33 responses)- A15% (5)
- B73% (24)
- D12% (4)
Explanation
Having inadequate privacy policies and procedures can expose an organization to legal risks such as industry or regulatory sanctions and charges of deceptive business practices. Industry or regulatory sanctions can result from violating the laws and regulations that govern data privacy and protection, such as the GDPR, the CCPA, or the GLBA. These sanctions can include fines, penalties, injunctions, or revocation of licenses. Charges of deceptive business practices can arise from misleading or false statements about how the organization collects, uses, or discloses personal data, or from failing to comply with its own privacy policies and procedures. These charges can lead to lawsuits, settlements, or enforcement actions by authorities such as the FTC or the state attorneys general.
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