- A
Amazon S3 server-side encryption with Amazon S3-managed keys (SSE-S3)
Why wrong: SSE-S3 uses keys managed entirely by AWS. The customer cannot control key rotation or view key usage logs, which does not meet the requirements for maintaining control and logging.
- B
AWS Key Management Service (AWS KMS) with customer managed keys
With customer managed keys in AWS KMS, the company has full control over the encryption keys, can set automatic key rotation, and can audit key usage through AWS CloudTrail. This matches all stated requirements.
- C
Amazon S3 server-side encryption with customer-provided keys (SSE-C)
Why wrong: SSE-C requires the customer to provide their own encryption key with each API request. AWS does not store the key, so automated rotation and centralized logging of key usage are not supported.
- D
AWS Certificate Manager (ACM)
Why wrong: ACM is used to provision, manage, and deploy SSL/TLS certificates for securing network traffic. It does not provide encryption of data at rest in Amazon S3.
Quick Answer
The answer is AWS Key Management Service (AWS KMS) with customer managed keys. This is correct because customer managed keys give the healthcare company full control over the encryption keys protecting their PHI in S3, including the ability to enforce annual rotation—either automatically or manually—and to log every key usage event through AWS CloudTrail for audit compliance. On the AWS Certified Cloud Practitioner CLF-C02 exam, this scenario tests your understanding of the shared responsibility model for encryption, specifically the difference between AWS managed keys (where AWS handles rotation and access) and customer managed keys (where you retain control). A common trap is choosing S3 server-side encryption with SSE-S3, which uses Amazon-managed keys and does not allow you to control rotation or log key usage. Remember the memory tip: “Customer managed keys = Customer controls rotation and logging.”
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 healthcare company is required to encrypt all protected health information (PHI) stored in Amazon S3. The company must maintain control over the encryption keys, rotate them annually, and log all key usage. Which AWS service or feature should they use to meet these requirements?
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
AWS Key Management Service (AWS KMS) with customer managed keys
AWS KMS with customer managed keys is correct because it allows the healthcare company to maintain full control over the encryption keys, enforce annual rotation (via automatic or manual key rotation), and log all key usage through AWS CloudTrail. This meets the compliance requirements for protecting PHI in S3 while retaining key management authority.
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.
- ✗
Amazon S3 server-side encryption with Amazon S3-managed keys (SSE-S3)
Why it's wrong here
SSE-S3 uses keys managed entirely by AWS. The customer cannot control key rotation or view key usage logs, which does not meet the requirements for maintaining control and logging.
- ✓
AWS Key Management Service (AWS KMS) with customer managed keys
Why this is correct
With customer managed keys in AWS KMS, the company has full control over the encryption keys, can set automatic key rotation, and can audit key usage through AWS CloudTrail. This matches all stated requirements.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Amazon S3 server-side encryption with customer-provided keys (SSE-C)
Why it's wrong here
SSE-C requires the customer to provide their own encryption key with each API request. AWS does not store the key, so automated rotation and centralized logging of key usage are not supported.
- ✗
AWS Certificate Manager (ACM)
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse SSE-S3 (which is simpler but lacks key control and logging) with the required key management and audit capabilities, or they mistakenly think ACM can be used for S3 encryption when it only handles transport layer security.
Detailed technical explanation
How to think about this question
AWS KMS customer managed keys use envelope encryption, where a CMK encrypts a data key that is then used to encrypt S3 objects; this allows key rotation without re-encrypting data. CloudTrail logs every KMS API call (e.g., Decrypt, Encrypt, GenerateDataKey) for auditing, and automatic rotation can be set to occur annually (or manually for more frequent rotation). In a real-world healthcare scenario, this ensures compliance with HIPAA by providing both key control and audit trails.
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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Security and Compliance — study guide chapter
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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: AWS Key Management Service (AWS KMS) with customer managed keys — AWS KMS with customer managed keys is correct because it allows the healthcare company to maintain full control over the encryption keys, enforce annual rotation (via automatic or manual key rotation), and log all key usage through AWS CloudTrail. This meets the compliance requirements for protecting PHI in S3 while retaining key management authority.
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Same concept, more angles
1 more ways this is tested on CLF-C02
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. Which AWS service provides a managed way to create, control, and rotate encryption keys used to protect your data?
medium- A.AWS Certificate Manager
- B.AWS Secrets Manager
- ✓ C.AWS Key Management Service (KMS)
- D.AWS CloudHSM
Why C: AWS Key Management Service (KMS) is the correct answer because it is a fully managed service that allows you to create, control, and rotate encryption keys used to protect your data. KMS integrates with other AWS services to encrypt data at rest and provides centralized key management, including automatic annual rotation for customer-managed keys. It uses hardware security modules (HSMs) to protect key material, but the service itself handles the management and rotation lifecycle.
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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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