When Hiring a Data Processor, Which Action Would a Data

question 35

Multiple Choice

When hiring a data processor, which action would a data controller NOT be able to depend upon to avoid liability in the event of a security breach?

• A) Documenting due diligence steps taken in the pre-contractual stage.
• B) Conducting a risk assessment to analyze possible outsourcing threats.
• C) Requiring that the processor directly notify the appropriate supervisory authority.
• D) Maintaining evidence that the processor was the best possible market choice available.

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Definitions:

Net Worth

The total value of an individual's or entity's assets minus liabilities, indicating financial health or status.

Financial Performance

An assessment of a company's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period.

Income Statement

A financial statement that shows a company’s revenues, expenses, and profits over a particular period of time.

Expense-Related Activities

Actions or operations that incur costs or expenses in the course of business operations or project execution.