ISC2 CC Security Principles Practice Question
An organization labels its financial reports as "Confidential" and requires encryption at rest and in transit. This is an example of:
⚠ Common exam trap
CC often tests the confusion between classification (categorizing by sensitivity) and the controls it triggers (encryption, masking, retention) — candidates must identify classification as the labeling/categorization act itself.
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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Data classification
Labeling data as 'Confidential' and applying handling requirements like encryption at rest and in transit is data classification — the process of categorizing data by sensitivity to determine appropriate protection. The label drives the controls, which is the essence of classification.
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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Data classification
Why this is correct
Assigning the Confidential label is itself the act of data classification, which then drives the mandated encryption controls. Classification categorises information by sensitivity so that handling requirements, such as encryption at rest and in transit, are applied proportionately.
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Data retention
Why it's wrong here
Retention defines how long data is kept before deletion or archival, and imposes no encryption requirement. It is tempting because it is a data governance control, but the stem's confidentiality label and encryption-at-rest/in-transit mandate describe classification, not retention periods.
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Data obfuscation
Why it's wrong here
Obfuscation alters data to make it unintelligible, typically for code or data hiding, and does not itself enforce encryption at rest and in transit. It is tempting as a confidentiality control, but classification plus encryption requirements describe data handling policy, not obfuscation.
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Data masking
Why it's wrong here
Masking replaces portions of data with characters to hide sensitive fields during display or testing, and does not mandate encryption in transit or at rest. It is tempting as a confidentiality technique, but the stem's labelling and encryption requirements describe data classification, not masking.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISC2 exam blueprint
This CC practice question is part of Courseiva's free ISC2 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 CC exam.