hardMultiple ChoiceObjective-mapped
Customer-Managed Encryption Keys: Dedicated HSM with Automated Key Rotation
A financial services company must store sensitive customer data in the cloud. The compliance team requires that data at rest be encrypted using customer-managed keys (CMK), and that the keys are rotated every 90 days. Additionally, the cloud provider must not have access to the keys. Which key management solution should the company choose?
Quick Answer
The correct choice is a dedicated HSM with automated key rotation because it provides a tamper-resistant hardware appliance where the customer exclusively controls the encryption keys, ensuring the cloud provider has no access. This directly satisfies the compliance requirement for customer-managed encryption keys and the mandate that the provider cannot access the keys, while the HSM’s automated key rotation policies can be configured to meet the 90-day rotation schedule. On the CompTIA Cloud+ CV0-004 exam, this scenario tests your understanding of cloud compliance controls and the distinction between cloud-managed and customer-managed key solutions—a common trap is selecting a cloud KMS that still gives the provider logical access to the keys. Remember the memory tip: “HSM keeps the keys home, provider stays out of the dome.”
⚠ Common exam trap
It's easy for candidates to confuse a cloud provider's managed HSM service (e.g., AWS KMS with custom key store) with a dedicated HSM, but the former still allows the provider logical access to the key management plane, whereas a dedicated HSM enforces physical and logical isolation.
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
✓
Use a dedicated HSM (hardware security module) with automated key rotation
A dedicated HSM provides a tamper-resistant hardware appliance where the customer exclusively controls the encryption keys, ensuring the cloud provider has no access. Automated key rotation policies can be configured on the HSM to meet the 90-day rotation requirement, satisfying both the CMK and provider non-access mandates.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Store the encryption keys in the cloud provider's parameter store with rotation policy
Why it's wrong here
Not a dedicated HSM.
- ✗
Use the cloud provider's default server-side encryption with a managed key
Why it's wrong here
Provider has access to managed keys.
- ✓
Use a dedicated HSM (hardware security module) with automated key rotation
Why this is correct
Dedicated HSM ensures exclusive customer control and supports rotation.
- ✗
Implement client-side encryption using a third-party key management service
Why it's wrong here
May not be fully integrated.
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Same concept, more angles
1 more way this is tested on CV0-004
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. An organization must comply with a regulation requiring that all data stored in the cloud be encrypted at rest using a cloud provider's native encryption service. The company also needs to maintain control over the encryption keys. Which solution should the architect recommend?
hard- ✓ A.Use the cloud provider's native encryption service with customer-managed keys
- B.Encrypt the data on-premises before uploading to the cloud
- C.Use the cloud provider's default encryption with provider-managed keys
- D.Use a third-party hardware security module (HSM) hosted on-premises
Why A: The regulation requires cloud-native encryption at rest with customer-controlled keys. Cloud providers offer services like AWS KMS with customer-managed keys (CMKs) or Azure Key Vault with customer-managed keys, which allow the organization to create, rotate, and disable keys independently while the provider handles the underlying encryption of data at rest using envelope encryption. This satisfies both the 'native encryption service' and 'maintain control over the encryption keys' requirements.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CV0-004 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 CV0-004 exam.