Quick Answer
The correct answer is AWS Key Management Service (KMS) and AWS CloudHSM, as both provide key management for encryption at rest. KMS is a fully managed service that lets you create and control customer master keys (CMKs) used to encrypt data in services like S3, EBS, and RDS, with automatic key rotation and integrated auditing via CloudTrail. CloudHSM offers dedicated hardware security modules (HSMs) that give you sole control over the physical appliance and keys, meeting FIPS 140-2 Level 3 compliance for tamper-resistant cryptographic operations. On the AWS Certified Security Specialty SCS-C02 exam, this distinction tests your understanding of managed versus unmanaged key control: KMS is the default for most integrated services, while CloudHSM is chosen when regulatory or compliance mandates require exclusive hardware-level key custody. A common trap is selecting AWS Certificate Manager (ACM) or Secrets Manager, which manage certificates and secrets but not encryption keys for at-rest data. Remember the mnemonic: "KMS for integrated ease, CloudHSM for hardware keys you please."
This SCS-C02 practice question tests your understanding of data protection. 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 AWS services provide key management for encryption at rest? (Choose 2.)
AWS Systems Manager Parameter Store
Why wrong: Stores configuration data, not keys.
AWS CloudHSM
Dedicated HSM for key management.
AWS Certificate Manager (ACM)
Why wrong: Manages SSL/TLS certificates.
AWS Key Management Service (KMS)
Managed key service.
AWS Secrets Manager
Why wrong: Manages secrets, not keys.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
AWS CloudHSM
AWS Key Management Service (KMS) is a managed service that makes it easy to create and control customer master keys (CMKs) used for encrypting data at rest across AWS services like S3, EBS, and RDS. AWS CloudHSM provides dedicated hardware security modules (HSMs) that allow you to manage your own encryption keys in a tamper-resistant hardware appliance, meeting FIPS 140-2 Level 3 compliance for key storage and cryptographic operations. Both services directly provide key management for encryption at rest, with KMS offering integrated key rotation and auditing via AWS CloudTrail, while CloudHSM gives you full control over the HSM appliance and keys.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
AWS Systems Manager Parameter Store
Why it's wrong here
Stores configuration data, not keys.
AWS CloudHSM
Why this is correct
Dedicated HSM for key management.
Related concept
Read the scenario before looking for a memorised answer.
AWS Certificate Manager (ACM)
Why it's wrong here
Manages SSL/TLS certificates.
AWS Key Management Service (KMS)
Why this is correct
Managed key service.
Related concept
Read the scenario before looking for a memorised answer.
AWS Secrets Manager
Why it's wrong here
Manages secrets, not keys.
Common exam traps
The trap here is that candidates often confuse AWS Secrets Manager or Systems Manager Parameter Store as key management services because they store encrypted secrets, but they are secret storage services that rely on KMS for encryption and do not provide independent key management for encryption at rest.
Detailed technical explanation
Under the hood, KMS uses FIPS 140-2 validated HSMs in a multi-tenant architecture to protect CMKs, with automatic key rotation and integration with AWS CloudTrail for auditing every key usage. CloudHSM provides a single-tenant, dedicated HSM appliance that you fully control, allowing you to generate, store, and manage keys using industry-standard APIs like PKCS#11, Java JCE, or Microsoft CNG, which is critical for regulatory compliance scenarios such as PCI DSS or FedRAMP where you need exclusive control over the HSM. A subtle behavior is that CloudHSM does not integrate natively with AWS services like S3 or EBS for server-side encryption; you must use the HSM to generate keys and then manually apply them via client-side encryption or custom integrations.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
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Data Protection — study guide chapter
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FAQ
Data Protection — This question tests Data Protection — Read the scenario before looking for a memorised answer..
The correct answer is: AWS CloudHSM — AWS Key Management Service (KMS) is a managed service that makes it easy to create and control customer master keys (CMKs) used for encrypting data at rest across AWS services like S3, EBS, and RDS. AWS CloudHSM provides dedicated hardware security modules (HSMs) that allow you to manage your own encryption keys in a tamper-resistant hardware appliance, meeting FIPS 140-2 Level 3 compliance for key storage and cryptographic operations. Both services directly provide key management for encryption at rest, with KMS offering integrated key rotation and auditing via AWS CloudTrail, while CloudHSM gives you full control over the HSM appliance and keys.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 24, 2026
This SCS-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 SCS-C02 exam.
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