ISO 14044:2006 Internal Auditor Quiz 10 24Mar25 - Practice Quiz

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Question 1 of 30

Global Dynamics, a multinational corporation operating in regions with varying data privacy regulations (including GDPR-compliant and non-GDPR-compliant jurisdictions), is implementing a new customer relationship management (CRM) system. The system will collect and process personal data from customers worldwide. The legal department has identified conflicting interpretations of \"data protection by design and by default\" across these jurisdictions. For example, some regions require explicit consent for certain data processing activities that other regions consider legitimate based on \"legitimate interest.\" Elara, the newly appointed Data Protection Officer, is tasked with ensuring the CRM system complies with ISO 27701:2019 and all applicable data privacy laws. Considering the complexities of differing regional laws and the principle of \"data protection by design and by default,\" which of the following actions should Elara prioritize to ensure the CRM system\'s compliance and minimize privacy risks?

Adopt the highest standard of data protection across all regions, conduct thorough data protection impact assessments (DPIAs), establish clear data governance policies that address regional variations, and provide comprehensive training to employees on data protection obligations.

Implement separate CRM systems for each region to comply with local data privacy laws, avoiding the complexities of differing interpretations of "data protection by design and by default."

Rely on standard contractual clauses (SCCs) for data transfers between regions and implement a centralized consent management platform to address varying consent requirements.

Implement a risk-based approach, prioritizing compliance with GDPR in regions where it applies and adopting a less stringent approach in non-GDPR-compliant regions to reduce implementation costs.

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