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CCSP Practice Question: A cloud service provider (CSP) experiences a…
A cloud service provider (CSP) experiences a security incident affecting customer data. The contract requires notification within 72 hours, but the CSP fails to notify. What is the most likely legal consequence for the CSP?
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
✓
Breach of contract and potential regulatory fines
Failure to notify as required by contract constitutes a breach of contract. Additionally, if the incident involves personal data, it may also violate regulations like GDPR, leading to regulatory fines. Option B is incorrect because automatic termination of all customer contracts is not a standard consequence; termination typically requires specific contract clauses and may not be automatic for a single breach. Option C is incorrect because criminal liability for executives usually requires proof of negligence or intent beyond mere failure to notify, and it is less common in such scenarios. Option D is incorrect because consequences exist regardless of the incident's severity; contractual obligations must be met, and non-compliance can result in legal action or fines.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Breach of contract and potential regulatory fines
Why this is correct
Contractual notification obligations are enforceable, and GDPR imposes fines for non-reporting.
- ✗
Automatic termination of all customer contracts
Why it's wrong here
Termination requires specific contract clauses, not automatic.
- ✗
Criminal liability for the CSP's executives
Why it's wrong here
Criminal liability is rare; civil and regulatory penalties are more common.
- ✗
No consequence if the incident was not serious
Why it's wrong here
Failure to notify is a breach regardless of severity.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CCSP 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 CCSP exam.