The answer is to create an AWS KMS custom key store backed by AWS CloudHSM. This solution meets the requirement because a custom key store allows you to use AWS KMS for all encryption operations while the actual key material is generated and stored exclusively in your own CloudHSM cluster, which you control as a single-tenant hardware security module in the AWS cloud. For the SAP-C02 exam, this scenario tests your understanding of the distinction between KMS-managed keys and customer-controlled HSMs, often appearing in questions about hybrid key management or regulatory compliance. A common trap is selecting a standard KMS key with imported key material, but that still places key management under AWS’s envelope, not your own HSM. The key insight is that CloudHSM provides the dedicated HSM you control, while the custom key store bridges it with KMS for seamless encryption at rest. Memory tip: think “KMS as the lock, CloudHSM as the key vault you own.”
SAP-C02 Design for New Solutions Practice Question
This SAP-C02 practice question tests your understanding of design for new solutions. 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 designing a new application that will process sensitive data. The application will run on Amazon ECS with Fargate. The security team requires that all data at rest be encrypted, and that encryption keys be managed by the company's own hardware security module (HSM) in an on-premises data center. Which TWO steps should the company take to meet these requirements? (Choose TWO.)
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use AWS CloudHSM to generate and store encryption keys
Option C is correct because AWS CloudHSM provides dedicated, single-tenant HSM instances that the company can use to generate and store encryption keys in its own HSM, meeting the requirement that keys be managed by the company's own HSM in an on-premises data center (though CloudHSM is in AWS, it is customer-controlled). Option D is correct because creating an AWS KMS custom key store backed by AWS CloudHSM allows the company to use KMS for encryption operations while the key material is stored in the CloudHSM cluster, satisfying the need for customer-managed HSM-backed keys.
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.
✗
Configure Amazon EBS encryption using AWS KMS with a customer managed key
Why it's wrong here
This uses KMS, but to integrate with on-premises HSMs, a custom key store is needed.
✗
Enable Amazon S3 default encryption with SSE-C
Why it's wrong here
SSE-C is for S3 only and does not apply to ECS storage.
✓
Use AWS CloudHSM to generate and store encryption keys
Why this is correct
CloudHSM provides dedicated HSM appliances in AWS that can be part of a company's HSM infrastructure.
Related concept
Read the scenario before looking for a memorised answer.
✓
Create an AWS KMS custom key store backed by AWS CloudHSM
Why this is correct
A custom key store allows KMS to use keys from a CloudHSM cluster, which can be synchronized with on-premises HSMs.
Related concept
Read the scenario before looking for a memorised answer.
✗
Store encryption keys in AWS Certificate Manager (ACM)
Why it's wrong here
ACM manages certificates, not encryption keys for data at rest.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume 'customer managed key' in AWS KMS (Option A) satisfies the requirement for keys to be managed by the company's own HSM, but KMS customer managed keys are still stored in AWS KMS, not in a customer-controlled HSM, unless a custom key store backed by CloudHSM is used.
Detailed technical explanation
How to think about this question
AWS CloudHSM provides FIPS 140-2 Level 3 validated HSMs that you manage via the PKCS#11, Java JCE, or Microsoft CNG interfaces, allowing you to generate, store, and use keys entirely within the HSM. A KMS custom key store integrates CloudHSM as the key store for KMS, so when you create a CMK in that custom key store, the key material is generated and stored in your CloudHSM cluster, and all cryptographic operations are performed inside the HSM, ensuring the company retains sole control over the keys.
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.
Design for New Solutions — This question tests Design for New Solutions — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use AWS CloudHSM to generate and store encryption keys — Option C is correct because AWS CloudHSM provides dedicated, single-tenant HSM instances that the company can use to generate and store encryption keys in its own HSM, meeting the requirement that keys be managed by the company's own HSM in an on-premises data center (though CloudHSM is in AWS, it is customer-controlled). Option D is correct because creating an AWS KMS custom key store backed by AWS CloudHSM allows the company to use KMS for encryption operations while the key material is stored in the CloudHSM cluster, satisfying the need for customer-managed HSM-backed keys.
What should I do if I get this SAP-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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Question Discussion
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