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Quick Answer
The answer is to use a customer managed AWS KMS key for DynamoDB encryption at rest, attach an IAM role to the Lambda function with least privilege access to the specific table ARN, configure API Gateway with an IAM authorizer, and include KMS grants in the Lambda function’s IAM policy. This combination ensures that data is encrypted under a key the company controls, the Lambda function can only perform necessary DynamoDB actions on its target table, and API requests are authenticated and authorized via IAM. On the SAA-C03 exam, this scenario tests your understanding of tying together encryption, least privilege, and authorization across serverless services—a common trap is forgetting the KMS grant for the Lambda role, as DynamoDB encryption at rest with a customer managed key still requires the function to have explicit kms:Decrypt permission to read encrypted data. A useful memory tip is "KMS key, table ARN, IAM auth, KMS grant"—four pieces that lock down the serverless stack.
SAA-C03 Design Secure Architectures Practice Question
This SAA-C03 practice question tests your understanding of design secure architectures. 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 is building a serverless application using AWS Lambda, Amazon API Gateway, and Amazon DynamoDB. The application must meet strict security and compliance requirements. The company needs to ensure that all data stored in DynamoDB is encrypted at rest using a customer-managed key, that the Lambda function can only access the specific DynamoDB table it needs, and that API requests are authenticated and authorized. Which of the following actions should the company take? (Choose four.)
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 configure DynamoDB to use it for encryption at rest.
Creating an AWS KMS customer managed key and configuring DynamoDB to use it for encryption at rest ensures that the data is encrypted using a key that the company controls, meeting strict compliance requirements. Attaching an IAM role to the Lambda function with a policy that grants only the necessary DynamoDB actions on the specific table ARN follows the principle of least privilege. Configuring API Gateway to use an IAM authorizer ensures that only authenticated AWS users or roles can invoke the API, providing authentication and authorization. Using AWS KMS grants in the Lambda function's IAM policy allows the function to use the customer managed key for encryption operations, which is necessary for encrypting and decrypting data in DynamoDB when using client-side encryption or when the key is used for other cryptographic operations.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may think storing the KMS key directly in environment variables is acceptable for 'easy access,' but AWS explicitly prohibits this due to security risks, and the exam tests understanding of proper key management via IAM policies and KMS grants.
Detailed technical explanation
How to think about this question
When using DynamoDB encryption at rest with a customer managed KMS key, the key is used to encrypt the table's data and all backups; the Lambda function must have IAM permissions (kms:Decrypt, kms:GenerateDataKey) to use the key for read/write operations, which is typically done via a KMS key policy or IAM policy with KMS actions. The IAM authorizer in API Gateway validates the caller's AWS identity using Signature Version 4, allowing fine-grained access control without managing custom tokens or Lambda authorizers. KMS grants are an alternative to key policies that allow a specified principal to use a KMS key for specific operations, but they are less commonly used than IAM policies for Lambda functions; the correct approach is to include KMS permissions in the Lambda execution role.
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 company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
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FAQ
Questions learners often ask
What does this SAA-C03 question test?
Design Secure Architectures — This question tests Design Secure Architectures — 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 configure DynamoDB to use it for encryption at rest. — Creating an AWS KMS customer managed key and configuring DynamoDB to use it for encryption at rest ensures that the data is encrypted using a key that the company controls, meeting strict compliance requirements. Attaching an IAM role to the Lambda function with a policy that grants only the necessary DynamoDB actions on the specific table ARN follows the principle of least privilege. Configuring API Gateway to use an IAM authorizer ensures that only authenticated AWS users or roles can invoke the API, providing authentication and authorization. Using AWS KMS grants in the Lambda function's IAM policy allows the function to use the customer managed key for encryption operations, which is necessary for encrypting and decrypting data in DynamoDB when using client-side encryption or when the key is used for other cryptographic operations.
What should I do if I get this SAA-C03 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
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