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CAS-004 Practice Question: A multinational corporation is implementing a…

A multinational corporation is implementing a privacy program that must comply with both GDPR and CCPA. Which approach to privacy impact assessments (PIAs) is most appropriate?

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

Conduct a single PIA that covers both regulations' requirements

Conducting a single PIA that addresses both GDPR and CCPA requirements is the most efficient and effective approach. GDPR requires Data Protection Impact Assessments (DPIAs) for high-risk processing, while CCPA mandates risk assessments for certain activities. A single PIA can map both regulations' requirements, identify overlapping controls, and ensure comprehensive compliance. Option A is wrong because separate PIAs would be redundant and could lead to inconsistencies or gaps. Option B is wrong because skipping PIAs for existing processing violates both regulations' requirements to review ongoing activities. Option D is wrong because PIAs are required for any processing that poses risks to privacy, not only high-risk data, and GDPR requires DPIAs for specified high-risk processing but also recommends them for other activities; however, the best practice is to conduct PIAs broadly to demonstrate accountability.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Perform separate PIAs for GDPR and CCPA requirements

    Why it's wrong here

    Duplicative and inefficient

  • Skip PIAs for existing processing activities

    Why it's wrong here

    PIAs are required for high-risk processing

  • Conduct a single PIA that covers both regulations' requirements

    Why this is correct

    Comprehensive and efficient

  • Only perform PIAs when processing high-risk data

    Why it's wrong here

    CCPA does not mandate PIAs for all but high-risk

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