- A
Server-side encryption with customer-provided keys (SSE-C)
Why wrong: SSE-C requires the customer to supply and manage the encryption keys. The customer must provide the key with each request, and AWS does not manage key rotation. This does not meet the automatic rotation requirement.
- B
Server-side encryption with AWS KMS managed keys (SSE-KMS) using a customer managed key
SSE-KMS with a customer managed key allows the company to define IAM and key policies for granular access control. AWS KMS can automatically rotate the key annually (configurable), satisfying the regulation. This is the correct solution.
- C
Client-side encryption using the AWS Encryption SDK
Why wrong: Client-side encryption requires the application to encrypt data before uploading it to S3. The customer is responsible for key management and rotation; AWS does not perform automatic rotation. This adds complexity and does not meet the automatic rotation requirement.
- D
Server-side encryption with Amazon S3 managed keys (SSE-S3)
Why wrong: SSE-S3 uses managed keys that are automatically rotated by AWS, but it does not allow the customer to control access to the keys with IAM policies. The company cannot restrict decryption to specific users or roles, which violates the access control requirement.
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 stores sensitive patient data in Amazon S3. The company must comply with a regulation that requires encryption keys to be rotated automatically every 12 months. The security team also needs to use IAM policies to control which users and roles can decrypt specific S3 objects. Which encryption solution should the company use for the S3 objects?
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
Server-side encryption with AWS KMS managed keys (SSE-KMS) using a customer managed key
SSE-KMS with a customer managed key is correct because it allows automatic key rotation every 12 months (configurable via the AWS KMS console) and enables fine-grained access control through IAM policies and key policies. This meets both the regulatory rotation requirement and the security team's need to control decryption of specific S3 objects.
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.
- ✗
Server-side encryption with customer-provided keys (SSE-C)
Why it's wrong here
SSE-C requires the customer to supply and manage the encryption keys. The customer must provide the key with each request, and AWS does not manage key rotation. This does not meet the automatic rotation requirement.
- ✓
Server-side encryption with AWS KMS managed keys (SSE-KMS) using a customer managed key
Why this is correct
SSE-KMS with a customer managed key allows the company to define IAM and key policies for granular access control. AWS KMS can automatically rotate the key annually (configurable), satisfying the regulation. This is the correct solution.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Client-side encryption using the AWS Encryption SDK
Why it's wrong here
Client-side encryption requires the application to encrypt data before uploading it to S3. The customer is responsible for key management and rotation; AWS does not perform automatic rotation. This adds complexity and does not meet the automatic rotation requirement.
- ✗
Server-side encryption with Amazon S3 managed keys (SSE-S3)
Why it's wrong here
SSE-S3 uses managed keys that are automatically rotated by AWS, but it does not allow the customer to control access to the keys with IAM policies. The company cannot restrict decryption to specific users or roles, which violates the access control requirement.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse SSE-S3's automatic key management (which rotates keys but not on a customer-defined schedule) with the automatic rotation and IAM control provided only by SSE-KMS with a customer managed key.
Detailed technical explanation
How to think about this question
SSE-KMS integrates with AWS KMS to use a customer managed key (CMK) that can be configured with automatic annual rotation (enabled via the KMS console or API). The IAM policy can grant or deny access to the kms:Decrypt action for specific CMKs, allowing the security team to control which users or roles can decrypt objects encrypted with that key. Under the hood, S3 sends a GenerateDataKey request to KMS during upload and a Decrypt request during download, with the CMK's key policy and IAM policies evaluated at each step.
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: Server-side encryption with AWS KMS managed keys (SSE-KMS) using a customer managed key — SSE-KMS with a customer managed key is correct because it allows automatic key rotation every 12 months (configurable via the AWS KMS console) and enables fine-grained access control through IAM policies and key policies. This meets both the regulatory rotation requirement and the security team's need to control decryption of specific S3 objects.
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.
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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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