CISM Information Security Governance Practice Question
A multinational organization handles personal data of EU residents. Which regulatory requirement must the information security program address?
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
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GDPR
GDPR applies to any organization processing personal data of EU residents, regardless of location.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
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SOX
Why it's wrong here
SOX governs financial reporting controls for publicly traded companies, not the processing of EU residents' personal data. It is tempting because both are compliance mandates, but GDPR is the regulation specifically addressing EU personal-data protection and cross-border transfers.
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PCI DSS
Why it's wrong here
PCI DSS applies to organisations storing, processing or transmitting cardholder data, regardless of EU residency. It is tempting because it is a widely recognised security standard, but GDPR is the regulation governing personal data of EU residents, which is the scenario's actual trigger.
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HIPAA
Why it's wrong here
HIPAA governs protected health information in the United States, not EU residents' personal data. It is tempting because it is a well-known privacy regulation, but GDPR is the framework that specifically applies to processing EU residents' personal data across multinational operations.
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GDPR
Why this is correct
The GDPR governs processing of EU residents' personal data, imposing lawful-basis, consent, breach-notification and data-subject-rights obligations. A multinational handling such data must align its security programme to these requirements, which is precisely the stem's regulatory constraint.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISM practice question is part of Courseiva's free ISACA 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 CISM exam.