easyMultiple ChoiceObjective-mapped
CAS-004 Practice Question: A mid-sized healthcare organization processes…
A mid-sized healthcare organization processes protected health information (PHI) and must comply with HIPAA and the GDPR for its EU patients. The organization uses a hybrid cloud environment with on-premises servers and AWS. Recently, an employee's laptop was stolen containing unencrypted PHI. The incident response team was activated. The security architect must determine the best course of action to address compliance obligations. The organization has a data classification policy, but it is not consistently enforced. A business continuity plan exists but has not been tested in two years. The CEO is concerned about reputational damage and legal liability. Which of the following should the security architect recommend FIRST?
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
✓
Notify affected patients and relevant regulatory authorities per breach notification rules
Under both HIPAA and GDPR, the primary immediate obligation after a data breach involving PHI is to notify affected individuals and relevant authorities within prescribed timeframes (72 hours for GDPR, and within 60 days for HIPAA). This demonstrates compliance and mitigates legal and reputational risk. Option A is wrong because purchasing cyber liability insurance is a financial risk transfer mechanism that does not satisfy the legal requirement to notify; it addresses potential costs but not the immediate compliance obligation. Option C is wrong while full-disk encryption is a preventive control that should be implemented, it does not address the current breach; notification must come first. Option D is wrong because updating the data classification policy is a long-term improvement, but the immediate priority is fulfilling breach notification requirements.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase cyber liability insurance to cover potential fines and legal costs
Why it's wrong here
Insurance is a risk transfer mechanism but does not fulfill regulatory notification obligations.
- ✓
Notify affected patients and relevant regulatory authorities per breach notification rules
Why this is correct
Both HIPAA and GDPR require timely notification of data breaches; this is the first step in incident response compliance.
- ✗
Implement full-disk encryption on all laptops and mobile devices immediately
Why it's wrong here
While encryption is a good long-term fix, the immediate priority is to comply with breach notification laws.
- ✗
Update the data classification policy to require encryption of all PHI on endpoints
Why it's wrong here
This is a preventive measure but does not address the immediate legal requirement to notify about the breach.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CAS-005 practice question is part of Courseiva's free CompTIA 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 CAS-005 exam.