Information Technology Specialist (ITS) Cybersecurity Practice Exam

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Which compliance act applies to companies managing personal data of EU citizens?

  1. HIPAA

  2. CCPA

  3. GDPR

  4. SOX

The correct answer is: GDPR

The General Data Protection Regulation (GDPR) is the compliance act that specifically governs the management of personal data of EU citizens. Enforced since May 2018, the GDPR aims to provide individuals within the European Union greater control over their personal data and to establish a framework for data protection that applies to all organizations dealing with personal data of EU residents, regardless of where the organization is located. The GDPR sets strict guidelines for the collection, use, and processing of personal data, requiring organizations to implement appropriate measures to safeguard this information. It also grants individuals rights such as the right to access their data, the right to have their data erased, and the right to data portability. In contrast, the other compliance acts mentioned apply to different contexts. The Health Insurance Portability and Accountability Act (HIPAA) is focused on protecting health information in the United States; the California Consumer Privacy Act (CCPA) specifically addresses data privacy for California residents; and the Sarbanes-Oxley Act (SOX) pertains to corporate financial reporting and accountability in the U.S. These laws do not primarily address the personal data of EU citizens, highlighting why GDPR is the correct answer in this context.