CCSP Legal, Risk, and Compliance Practice Question
A multinational corporation with its headquarters in the United States processes personal data of European Union data subjects using a cloud-based customer relationship management (CRM) system hosted in the United States. According to the General Data Protection Regulation (GDPR), which of the following is the company's primary obligation regarding the protection of that data?
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
✓
The company must appoint a representative in the EU and ensure that any data transfers outside the EU are covered by an adequacy decision, standard contractual clauses, or binding corporate rules.
GDPR applies to any organization processing personal data of EU data subjects, regardless of where the processing occurs. The company is a data controller and must comply with all GDPR requirements, including data subject rights and breach notification.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The company must delete all personal data within 30 days of collection.
Why it's wrong here
GDPR does not mandate a specific retention period; it requires data to be kept no longer than necessary.
- ✗
The company is not subject to GDPR because its headquarters and the cloud server are located outside the EU.
Why it's wrong here
GDPR has extraterritorial scope; location of processing does not exempt compliance.
- ✓
The company must appoint a representative in the EU and ensure that any data transfers outside the EU are covered by an adequacy decision, standard contractual clauses, or binding corporate rules.
Why this is correct
This is correct. GDPR requires a representative if the controller is not established in the EU, and transfers must have a legal mechanism.
- ✗
The company must obtain explicit consent from each data subject before processing their data.
Why it's wrong here
Consent is one lawful basis but not always required; other bases may apply. The statement is too absolute.
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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.