Question 1

Global Manufacturing Co’s Human Resources department recently purchased a new software tool. This tool

helps evaluate future candidates for executive roles by scanning emails to see what those candidates say and

what is said about them. This provides the HR department with an automated “360 review” that lets them

know how the candidate thinks and operates, what their peers and direct reports say about them, and how well

they interact with each other.

What is the most important step for the Human Resources Department to take when implementing this new

software?

Options :

A : Making sure that the software does not unintentionally discriminate against protected groups.

B :

Ensuring that the software contains a privacy notice explaining that employees have no right to privacy

as long as they are running this software on organization systems to scan email systems.

C :

Confirming that employees have read and signed the employee handbook where they have been advised

that they have no right to privacy as long as they are using the organization’s systems, regardless of the

protected group or laws enforced by EEOC.

D :

Providing notice to employees that their emails will be scanned by the software and creating automated

profiles.

Answer: A

Question 2

A covered entity suffers a ransomware attack that affects the personal health information (PHI) of more than 500 individuals. According to Federal law under HIPAA, which of the following would the covered entity NOT have to report the breach to?

Options :

A : Department of Health and Human Services

B : The affected individuals

C : The local media

D : Medical providers

Answer: D

Question 3

Acme Student Loan Company has developed an artificial intelligence algorithm that determines whether an

individual is likely to pay their bill or default. A person who is determined by the algorithm to be more likely

to default will receive frequent payment reminder calls, while those who are less likely to default will not

receive payment reminders.

Which of the following most accurately reflects the privacy concerns with Acme Student Loan Company using

artificial intelligence in this manner?

Options :

A :

If the algorithm uses risk factors that impact the automatic decision engine. Acme must ensure that the

algorithm does not have a disparate impact on protected classes in the output.

B :

If the algorithm makes automated decisions based on risk factors and public information, Acme need not

determine if the algorithm has a disparate impact on protected classes.

C :

If the algorithm’s methodology is disclosed to consumers, then it is acceptable for Acme to have a

disparate impact on protected classes.

D :

If the algorithm uses information about protected classes to make automated decisions, Acme must

ensure that the algorithm does not have a disparate impact on protected classes in the output.

Answer: B

Question 4

Under the Fair and Accurate Credit Transactions Act (FACTA), what is the most appropriate action for a car dealer holding a paper folder of customer credit reports?

Options :

A : To follow the Disposal Rule by having the reports shredded

B : To follow the Red Flags Rule by mailing the reports to customers

C : To follow the Privacy Rule by notifying customers that the reports are being stored

D :

To follow the Safeguards Rule by transferring the reports to a secure electronic file

Answer: C

Question 5

Which of the following types of information would an organization generally NOT be required to disclose to

law enforcement?

Options :

A : Information about medication errors under the Food, Drug and Cosmetic Act

B : Money laundering information under the Bank Secrecy Act of 1970

C : Information about workspace injuries under OSHA requirements

D : Personal health information under the HIPAA Privacy Rule

Answer: D

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