International Association Of Privacy Professionals -
Chapter 4: Principles Of Information Management
What are the 4 risks of using personal information improperly? Correct
Answer - Legal, repetitional, operational, investment
Define "Legal Risks" Correct Answer - The organization must comply with
applicable state, federal and international laws regarding its use of
information or potentially face litigation or regulatory sanctions, such as
consent decrees, which may last for many years
Define "Reputational risks" Correct Answer - The organization can face
reputational harm if it announces privacy policies but does not carry them
out; it may also face enforcement actions—particularly from the Federal
Trade Commission (FTC)
Define "Operational Risks" Correct Answer - The organization must ensure
that its privacy program is administratively efficient. If a privacy program is
too heavy-handed, it may interfere with relationships and inhibit uses of
personal information that benefit the organization and its customers, such as
for personalization or risk management.
Define "Investment risks" Correct Answer - The organization must be able
to receive an appropriate return on its investments in information, IT, and
information-processing programs in light of evolving privacy regulations,
enforcement and expectations.
Chapter 4: Principles Of Information Management
What are the 4 risks of using personal information improperly? Correct
Answer - Legal, repetitional, operational, investment
Define "Legal Risks" Correct Answer - The organization must comply with
applicable state, federal and international laws regarding its use of
information or potentially face litigation or regulatory sanctions, such as
consent decrees, which may last for many years
Define "Reputational risks" Correct Answer - The organization can face
reputational harm if it announces privacy policies but does not carry them
out; it may also face enforcement actions—particularly from the Federal
Trade Commission (FTC)
Define "Operational Risks" Correct Answer - The organization must ensure
that its privacy program is administratively efficient. If a privacy program is
too heavy-handed, it may interfere with relationships and inhibit uses of
personal information that benefit the organization and its customers, such as
for personalization or risk management.
Define "Investment risks" Correct Answer - The organization must be able
to receive an appropriate return on its investments in information, IT, and
information-processing programs in light of evolving privacy regulations,
enforcement and expectations.
