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CISSP Practice Question: A financial institution is implementing a data…
A financial institution is implementing a data retention policy to comply with regulatory requirements. The policy must ensure that transaction records are retained for 7 years and then securely destroyed. Which of the following is the BEST approach to implement this policy?
⚠ Common exam trap
Many candidates confuse 'cryptographic erasure' (Option A) with secure destruction, but the CISSP exam emphasizes that destroying encryption keys does not physically destroy the data and is not considered a secure destruction method for regulatory compliance unless combined with other controls.
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
✓
Automatically purge records using a data management tool that overwrites data after the retention period
Automated purging using a data management tool that overwrites data ensures that the records are securely destroyed at the end of the retention period, meeting both regulatory compliance and data sanitization requirements. Overwriting (e.g., using DoD 5220.22-M or NIST SP 800-88 standards) prevents data recovery by replacing the storage media's bits with patterns, making it a reliable method for secure destruction in a financial institution's automated environment.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Encrypt all records and destroy the encryption keys after 7 years
Why it's wrong here
While destroying encryption keys renders encrypted data practically inaccessible without the key, it does not physically destroy the data itself. The encrypted data still resides on storage media and could potentially be recovered if the key was backed up elsewhere, or if future cryptographic breakthroughs or quantum computing render the encryption weak. True data destruction requires secure overwriting or physical destruction of the media.
- ✓
Automatically purge records using a data management tool that overwrites data after the retention period
Why this is correct
This method provides the most robust and compliant approach to data destruction. Automated data management tools can reliably identify records past their retention period and apply secure overwriting techniques, such as multiple passes with random data, to render the original data unrecoverable. This minimizes human error, ensures consistent application of the policy, and meets regulatory requirements for data sanitization.
- ✗
Move records to a separate archive and delete the directory pointers
Why it's wrong here
Deleting directory pointers or file system entries merely removes the reference to the data, not the data itself. The actual data blocks remain on the storage medium and can often be recovered using forensic tools until they are explicitly overwritten by new data. This method fails to meet data destruction requirements, leaving sensitive information vulnerable to unauthorized recovery.
- ✗
Manually review and delete records after 7 years
Why it's wrong here
Manual processes for data deletion are inherently inefficient, especially for financial institutions dealing with vast volumes of records. This approach is highly susceptible to human error, leading to inconsistent application of the retention policy, accidental deletion of necessary data, or, more critically, failure to delete sensitive data, resulting in non-compliance and increased risk.
Go deeper
Related to this question
Learn chapter
Asset Security: Privacy and Data Retention
Key term
Compliance
Compliance is the process of ensuring that an organization follows laws, regulations, standards, and internal policies that apply to its operations and data handling.
Key term
Data retention
Data retention is the practice of keeping data for a specific period to meet legal, business, or compliance needs, and then securely disposing of it.
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Same concept, more angles
1 more way this is tested on CISSP
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A financial institution must retain customer transaction records for 7 years. After that, what is the most appropriate action?
medium- A.Degauss and physically destroy
- ✓ B.Securely delete using overwriting
- C.Transfer to a third-party storage vendor
- D.Archive to tape for additional redundancy
Why B: After the 7-year retention period, the most appropriate action is to securely delete the records using overwriting. This ensures that the data is irrecoverable while maintaining compliance with data disposal policies. Overwriting with multiple passes (e.g., using the Gutmann method or DoD 5220.22-M standard) prevents data remanence, which is critical for financial records.
JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISSP 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 CISSP exam.