CCSP Practice Questions: Legal, Risk and Compliance Domain

Published: August 2, 2025 | 20 min read

Test your CCSP knowledge with 10 practice questions from the Legal, Risk and Compliance domain. Includes detailed explanations and answers.

CCSP Practice Questions

Master the Legal, Risk and Compliance Domain

Test your knowledge in the Legal, Risk and Compliance domain with these 10 practice questions. Each question is designed to help you prepare for the CCSP certification exam with detailed explanations to reinforce your learning.

Question 1

A multinational organization is migrating its data to a cloud service provider. Which of the following should be the top priority to ensure compliance with international data protection laws?

A) Implementing a robust data encryption strategy.

B) Ensuring data residency requirements are met.

C) Conducting regular penetration testing.

D) Establishing a comprehensive incident response plan.

Show Answer & Explanation

Correct Answer: B

Explanation: Ensuring data residency requirements are met is crucial to comply with various international data protection laws, such as the GDPR, which mandates that personal data must not be transferred outside the EU unless certain conditions are met. While encryption, penetration testing, and incident response are important, data residency directly addresses legal compliance.

Question 2

A company is planning to use multiple cloud service providers to avoid vendor lock-in. What is a key compliance consideration when adopting a multi-cloud strategy?

A) Ensuring consistent encryption protocols across all cloud providers.

B) Standardizing virtual machine configurations across providers.

C) Negotiating identical service level agreements (SLAs) with each provider.

D) Maintaining a centralized compliance management system.

Show Answer & Explanation

Correct Answer: D

Explanation: Maintaining a centralized compliance management system is crucial in a multi-cloud strategy to ensure that the company meets regulatory requirements consistently across different cloud environments. This approach helps manage compliance obligations and audits efficiently. While consistent encryption, standardized configurations, and SLAs are important, they do not address the overarching need for centralized compliance oversight.

Question 3

Which of the following is a primary consideration for a company using a hybrid cloud model in order to comply with industry-specific regulations?

A) Implementing a unified logging system across all environments.

B) Ensuring consistent encryption standards are applied.

C) Maintaining a clear data classification policy.

D) Regularly updating firewall rules.

Show Answer & Explanation

Correct Answer: C

Explanation: Maintaining a clear data classification policy is crucial for compliance with industry-specific regulations, as it helps in identifying and protecting sensitive data appropriately across different environments. While unified logging, encryption, and firewall updates are important for security, data classification directly impacts compliance by ensuring that regulatory requirements for different data types are met.

Question 4

A company is negotiating a cloud service contract with a provider. To ensure the contract adequately addresses data protection and compliance, which clause should the company prioritize?

A) A clause specifying the cloud provider's uptime guarantees and SLAs.

B) A clause detailing the provider's data breach notification procedures.

C) A clause outlining the provider's disaster recovery capabilities.

D) A clause describing the provider's software update and patch management process.

Show Answer & Explanation

Correct Answer: B

Explanation: Prioritizing a clause detailing the provider's data breach notification procedures is crucial for data protection and compliance. This ensures that the company is promptly informed of any security incidents affecting their data, which is essential for regulatory compliance and timely incident response. While uptime, disaster recovery, and patch management are important, they do not directly address data protection and compliance.

Question 5

A multinational corporation is planning to migrate its on-premises data centers to a combination of AWS, Azure, and GCP. Which of the following should be prioritized to ensure compliance with international data protection regulations during this migration?

A) Implementing a unified logging and monitoring system across all cloud platforms.

B) Establishing a data classification scheme that aligns with each region's legal requirements.

C) Deploying a multi-cloud identity and access management solution.

D) Configuring a cloud-native firewall to protect data in transit.

Show Answer & Explanation

Correct Answer: B

Explanation: Establishing a data classification scheme that aligns with each region's legal requirements is crucial for compliance with international data protection regulations. Different regions have varying legal requirements for data protection, such as GDPR in Europe or CCPA in California. While logging, IAM, and firewalls are important security measures, they do not directly address legal compliance with data protection regulations.

Question 6

An organization is entering into a contract with a cloud service provider for hosting its critical applications. Which clause is most important to include in the contract to address risk management?

A) A clause detailing the service level agreement (SLA).

B) A clause specifying the cloud provider's liability limits.

C) A clause requiring regular security audits and assessments.

D) A clause outlining the cloud provider's support response times.

Show Answer & Explanation

Correct Answer: C

Explanation: Including a clause that requires regular security audits and assessments is crucial for risk management. This ensures that the cloud provider's security measures are regularly evaluated and that any vulnerabilities are identified and addressed. While SLAs, liability limits, and support response times are important, they do not directly address the ongoing assessment and management of security risks.

Question 7

A company is concerned about potential data sovereignty issues when using cloud services. What is the BEST approach to address these concerns?

A) Selecting cloud providers that offer data localization services in the required jurisdictions.

B) Implementing end-to-end encryption for all data stored in the cloud.

C) Deploying a private cloud infrastructure within the company's own data centers.

D) Using a Content Delivery Network (CDN) to distribute data globally.

Show Answer & Explanation

Correct Answer: A

Explanation: Selecting cloud providers that offer data localization services ensures that data is stored within specific jurisdictions, addressing data sovereignty concerns. While encryption and private cloud infrastructure enhance security, and CDNs improve data distribution, they do not specifically resolve issues related to data sovereignty.

Question 8

When negotiating cloud service SLAs, which metric provides the most meaningful measure of availability for mission-critical applications?

A) Monthly uptime percentage

B) Recovery Time Objective (RTO) with penalties

C) Mean Time Between Failures (MTBF)

D) Recovery Point Objective (RPO) guarantees

Show Answer & Explanation

Correct Answer: B

Explanation: Recovery Time Objective (RTO) with penalties provides the most meaningful measure for mission-critical applications because it defines maximum acceptable downtime and includes financial consequences for non-compliance. This metric directly addresses business impact and ensures accountability.

Question 9

An organization is migrating its infrastructure to a hybrid cloud environment and needs to ensure compliance with the GDPR. Which of the following actions is most critical to demonstrate accountability under GDPR?

A) Implementing strong encryption for all data stored in the cloud.

B) Conducting regular audits and maintaining detailed records of data processing activities.

C) Utilizing a cloud service provider that is certified under the EU-U.S. Privacy Shield Framework.

D) Deploying a comprehensive intrusion detection system (IDS) across all cloud environments.

Show Answer & Explanation

Correct Answer: B

Explanation: Under GDPR, demonstrating accountability involves conducting regular audits and maintaining detailed records of data processing activities. This ensures that the organization can prove compliance with GDPR requirements. While encryption, certification, and IDS are important, they do not directly demonstrate accountability.

Question 10

An organization is evaluating cloud service providers for storing sensitive healthcare data. Which compliance certification should the organization prioritize to ensure the provider meets healthcare data protection requirements?

A) ISO/IEC 27001

B) PCI DSS

C) HIPAA

D) SOC 2

Show Answer & Explanation

Correct Answer: C

Explanation: HIPAA (Health Insurance Portability and Accountability Act) is specifically designed to protect sensitive patient information and is the most relevant compliance certification for healthcare data. While ISO/IEC 27001 and SOC 2 are important for general information security management, and PCI DSS is relevant for payment card data, HIPAA directly addresses healthcare data protection requirements.

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About CCSP Certification

The CCSP certification validates your expertise in legal, risk and compliance and other critical domains. Our comprehensive practice questions are carefully crafted to mirror the actual exam experience and help you identify knowledge gaps before test day.