- A
Use a dead-letter queue (DLQ) for failed invocations
Why wrong: DLQ is for error handling, not security.
- B
Encrypt environment variables using AWS KMS
Protects sensitive data at rest.
- C
Grant the Lambda function full access to all S3 buckets
Why wrong: Least privilege principle is violated.
- D
Run the Lambda function inside a VPC
VPC provides network isolation.
- E
Store secrets in the Lambda function code
Why wrong: Hardcoding secrets is insecure.
Question 184 of 1,616
Securing AWS Lambda for Sensitive Data
This DVA-C02 practice question tests your understanding of development with aws services. 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.
Which TWO actions should a developer take to improve the security of an AWS Lambda function that processes sensitive data?
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
✓
Encrypt environment variables using AWS KMS
Encrypting environment variables with AWS KMS ensures that sensitive data, such as database credentials or API keys, is protected at rest and in transit during function deployment. This is a critical security best practice because environment variables are visible in plaintext in the Lambda console and API responses unless encrypted. KMS provides envelope encryption, where a customer master key (CMK) encrypts the data key that encrypts the environment variables, giving you full control over access and key rotation.
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 a dead-letter queue (DLQ) for failed invocations
Why it's wrong here
DLQ is for error handling, not security.
- ✓
Encrypt environment variables using AWS KMS
Why this is correct
Protects sensitive data at rest.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Grant the Lambda function full access to all S3 buckets
Why it's wrong here
Least privilege principle is violated.
- ✓
Run the Lambda function inside a VPC
Why this is correct
VPC provides network isolation.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Store secrets in the Lambda function code
Why it's wrong here
Hardcoding secrets is insecure.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think a DLQ (Option A) improves security by handling failures, but it is a reliability mechanism, not a security control, and they may overlook that running a Lambda in a VPC (Option D) is a security measure to isolate network traffic, even though it is not directly about encrypting data.
Detailed technical explanation
How to think about this question
When you encrypt Lambda environment variables using KMS, the Lambda service uses the specified CMK to generate a data key, which encrypts the variables before storage. The encrypted ciphertext is then stored with the function, and at invocation time, Lambda decrypts the variables only for the executing code. This process uses the AWS KMS Decrypt API, and you can enforce key usage policies and audit access via AWS CloudTrail, providing granular control and compliance for sensitive data processing.
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.
Quick reference
Cloud Service Model Comparison
| Model | You Manage | Provider Manages | Examples |
|---|---|---|---|
| IaaS | OS, runtime, apps, data | Hardware, hypervisor, networking | EC2, Azure VMs, GCP Compute Engine |
| PaaS | Apps and data | OS, runtime, middleware, hardware | Elastic Beanstalk, Azure App Service |
| SaaS | Data and settings only | Everything else | Microsoft 365, Salesforce, Workday |
| FaaS / Serverless | Function code only | Infra, scaling, runtime | Lambda, Azure Functions, Cloud Run |
| CaaS | Containers and apps | Kubernetes, OS, hardware | EKS, AKS, GKE |
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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Development with AWS Services — study guide chapter
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FAQ
Questions learners often ask
What does this DVA-C02 question test?
Development with AWS Services — This question tests Development with AWS Services — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Encrypt environment variables using AWS KMS — Encrypting environment variables with AWS KMS ensures that sensitive data, such as database credentials or API keys, is protected at rest and in transit during function deployment. This is a critical security best practice because environment variables are visible in plaintext in the Lambda console and API responses unless encrypted. KMS provides envelope encryption, where a customer master key (CMK) encrypts the data key that encrypts the environment variables, giving you full control over access and key rotation.
What should I do if I get this DVA-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: Jul 4, 2026
This DVA-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 DVA-C02 exam.
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