- A
Use a cloud-based HSM (e.g., AWS CloudHSM) and keep the key material in the cloud HSM.
Why wrong: Keys are managed in the cloud, not on-premises as required.
- B
Use SSE-C with the enterprise's HSM, sending keys over the dedicated connection (Direct Connect) as it is private.
Why wrong: Keys are still transmitted over a network, even if private; regulation may prohibit any transmission.
- C
Use server-side encryption with KMS using an imported key material protected by the enterprise's HSM, accessed via KMS API over the dedicated connection.
Why wrong: The key material is transmitted over the network during import and each API call.
- D
Use client-side encryption on-premises before uploading data, using keys from the HSM.
Keys never leave the on-premises HSM; only encrypted data is sent.
CCSP Cloud Data Security Practice Question
This CCSP practice question tests your understanding of cloud data security. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A large enterprise is migrating its data center workloads to a public cloud. The security policy requires that all sensitive data stored in cloud storage services be encrypted with keys managed by the enterprise's on-premises HSM. The cloud storage service offers server-side encryption with customer-provided keys (SSE-C). However, compliance regulations prohibit the transmission of encryption keys over the public internet. The enterprise also has a dedicated network connection to the cloud provider (e.g., AWS Direct Connect). The security team is considering several options. Which solution meets all requirements: (1) data encrypted at rest on the cloud service, (2) keys controlled by the enterprise, (3) keys never transmitted over the internet?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"never"Why it matters: Absolute qualifier. True only if the statement has zero exceptions — be cautious of options that seem obvious but break down in edge cases.
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 client-side encryption on-premises before uploading data, using keys from the HSM.
Option D is correct because client-side encryption encrypts data on-premises using keys from the enterprise's HSM before the data is ever transmitted to the cloud. This ensures the data is encrypted at rest in the cloud, the enterprise retains full control of the keys, and the keys never traverse any network—public or private—to the cloud provider. The dedicated connection (Direct Connect) is irrelevant for key transmission since the keys never leave the on-premises HSM.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Use a cloud-based HSM (e.g., AWS CloudHSM) and keep the key material in the cloud HSM.
Why it's wrong here
Keys are managed in the cloud, not on-premises as required.
- ✗
Use SSE-C with the enterprise's HSM, sending keys over the dedicated connection (Direct Connect) as it is private.
Why it's wrong here
Keys are still transmitted over a network, even if private; regulation may prohibit any transmission.
- ✗
Use server-side encryption with KMS using an imported key material protected by the enterprise's HSM, accessed via KMS API over the dedicated connection.
Why it's wrong here
The key material is transmitted over the network during import and each API call.
- ✓
Use client-side encryption on-premises before uploading data, using keys from the HSM.
Why this is correct
Keys never leave the on-premises HSM; only encrypted data is sent.
Clue confirmation
The clue word "never" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
ISC2 often tests the misconception that a private or dedicated network connection (like Direct Connect) satisfies a 'no transmission over the internet' requirement, but the trap here is that the regulation prohibits any network transmission of keys, not just over the public internet, so even a private link is disallowed if keys are sent over it.
Detailed technical explanation
How to think about this question
Client-side encryption typically uses envelope encryption: the HSM generates a data encryption key (DEK) that encrypts the data, and the DEK is then encrypted by a master key stored in the HSM. Only the encrypted DEK (or ciphertext) is stored alongside the data in the cloud, while the master key never leaves the HSM. This approach aligns with the 'never transmit keys' requirement because no key material is ever sent over any network—the encryption happens entirely on-premises before upload.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A developer is choosing between AES-256 (symmetric) and RSA-2048 (asymmetric) for encrypting a large file that will be sent to a partner. Symmetric encryption is fast but requires key exchange; asymmetric is slower but solves the key distribution problem. A hybrid approach — encrypt the file with AES, encrypt the AES key with RSA — is standard. Questions like this test whether you understand when each approach applies.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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Cloud Data Security — study guide chapter
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FAQ
Questions learners often ask
What does this CCSP question test?
Cloud Data Security — This question tests Cloud Data Security — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Use client-side encryption on-premises before uploading data, using keys from the HSM. — Option D is correct because client-side encryption encrypts data on-premises using keys from the enterprise's HSM before the data is ever transmitted to the cloud. This ensures the data is encrypted at rest in the cloud, the enterprise retains full control of the keys, and the keys never traverse any network—public or private—to the cloud provider. The dedicated connection (Direct Connect) is irrelevant for key transmission since the keys never leave the on-premises HSM.
What should I do if I get this CCSP question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "never". Absolute qualifier. True only if the statement has zero exceptions — be cautious of options that seem obvious but break down in edge cases.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 30, 2026
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.
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