- A
Use Amazon S3 server-side encryption with customer-provided encryption keys (SSE-C).
Why wrong: SSE-C allows you to provide your own encryption keys, but you must manage the keys yourself and rotation is a manual process. It does not provide an automated rotation feature within AWS.
- B
Create an AWS KMS customer managed key and enable automatic annual rotation.
Correct. AWS KMS customer managed keys (CMKs) can have automatic key rotation enabled, which rotates the key material once per year without any manual effort. The company retains control and ownership of the key.
- C
Use an AWS KMS AWS managed key (aws/s3) which automatically rotates the key every year.
Why wrong: AWS managed keys rotate automatically, but they are managed by AWS on your behalf. The scenario states the company must generate and manage the key itself, so an AWS managed key does not satisfy the requirement of company management.
- D
Use AWS CloudHSM to generate and manage the key, and implement a custom cron job to rotate the key.
Why wrong: AWS CloudHSM provides a hardware security module for key generation, but rotation would require building and maintaining a custom solution (e.g., a cron job) to rotate the key. This is not fully automated as a native AWS feature and introduces operational overhead.
CLF-C02 Security and Compliance Practice Question
This CLF-C02 practice question tests your understanding of security and compliance. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company stores sensitive financial data in Amazon S3 and must encrypt it at rest. The compliance team mandates that the encryption key must be rotated at least once per year, and the key material must be generated and managed by the company within AWS. The company wants a fully automated solution that requires no manual intervention for key rotation. Which AWS service or feature should the company use?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"least"Why it matters: You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Create an AWS KMS customer managed key and enable automatic annual rotation.
Option B is correct because AWS KMS customer managed keys support automatic annual rotation, which satisfies the compliance requirement for key rotation without manual intervention. The company retains control over the key material since it is generated and managed within AWS KMS, meeting the mandate that the company manages the keys within AWS.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use Amazon S3 server-side encryption with customer-provided encryption keys (SSE-C).
Why it's wrong here
SSE-C allows you to provide your own encryption keys, but you must manage the keys yourself and rotation is a manual process. It does not provide an automated rotation feature within AWS.
- ✓
Create an AWS KMS customer managed key and enable automatic annual rotation.
Why this is correct
Correct. AWS KMS customer managed keys (CMKs) can have automatic key rotation enabled, which rotates the key material once per year without any manual effort. The company retains control and ownership of the key.
Clue confirmation
The clue word "least" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Use an AWS KMS AWS managed key (aws/s3) which automatically rotates the key every year.
Why it's wrong here
AWS managed keys rotate automatically, but they are managed by AWS on your behalf. The scenario states the company must generate and manage the key itself, so an AWS managed key does not satisfy the requirement of company management.
- ✗
Use AWS CloudHSM to generate and manage the key, and implement a custom cron job to rotate the key.
Why it's wrong here
AWS CloudHSM provides a hardware security module for key generation, but rotation would require building and maintaining a custom solution (e.g., a cron job) to rotate the key. This is not fully automated as a native AWS feature and introduces operational overhead.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse AWS managed keys (which rotate automatically but are not customer-managed) with customer managed keys, or assume that SSE-C or CloudHSM are simpler solutions without realizing they fail the 'fully automated' or 'within AWS' requirements.
Trap categories for this question
Scenario analysis trap
AWS managed keys rotate automatically, but they are managed by AWS on your behalf. The scenario states the company must generate and manage the key itself, so an AWS managed key does not satisfy the requirement of company management.
Detailed technical explanation
How to think about this question
AWS KMS customer managed keys use a backing key and a series of rotated key versions; when automatic annual rotation is enabled, KMS creates a new cryptographic material (key version) each year while retaining the old ones for decryption of existing data. The key ID and alias remain the same, so applications using the key do not need to be updated. This is distinct from re-importing key material, which would require manual steps.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this CLF-C02 question test?
Security and Compliance — This question tests Security and Compliance — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Create an AWS KMS customer managed key and enable automatic annual rotation. — Option B is correct because AWS KMS customer managed keys support automatic annual rotation, which satisfies the compliance requirement for key rotation without manual intervention. The company retains control over the key material since it is generated and managed within AWS KMS, meeting the mandate that the company manages the keys within AWS.
What should I do if I get this CLF-C02 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "least". You want the option with minimum overhead, fewest steps, or lowest impact — not the most feature-rich or comprehensive answer.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 11, 2026
This CLF-C02 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CLF-C02 exam.
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