ISO-IEC-27001-LEAD-AUDITOR practice question 6 of 35

Scenario: Northstorm is an online retail shop offering unique vintage and modern accessories. It initially entered a small market but gradually grew…

Full set: 368 questions
Scenario: Northstorm is an online retail shop offering unique vintage and modern accessories. It initially entered a small market but gradually grew thanks to the development of the overall e-commerce landscape. Northstorm works exclusively online and ensures efficient payment processing, inventory management, marketing tools, and shipment orders. It uses prioritized ordering to receive, restock, and ship its most popular products. Northstorm has traditionally managed its IT operations by hosting its website and maintaining full control over its infrastructure, including hardware, software, and data administration. However, this approach hindered its growth due to the lack of responsive infrastructure. Seeking to enhance its e- commerce and payment systems, Northstorm opted to expand its in-house data centers, completing the expansion in two phases over three months. Initially, the company upgraded its core servers, point-of-sale, ordering, billing, database, and backup systems. The second phase involved improving mail, payment, and network functionalities. Additionally, during this phase, Northstorm adopted an international standard for personally identifiable information (PII) controllers and PII processors regarding PII processing to ensure its data handling practices were secure and compliant with global regulations. Despite the expansion, Northstorm's upgraded data centers failed to meet its evolving business demands. This inadequacy led to several new challenges, including issues with order prioritization. Customers reported not receiving priority orders, and the company struggled with responsiveness. This was largely due to the main server's inability to process orders from YouDecide, an application designed to prioritize orders and simulate customer interactions. The application, reliant on advanced algorithms, was incompatible with the new operating system (OS) installed during the upgrade. Faced with urgent compatibility issues, Northstorm quickly patched the application without proper validation, leading to the installation of a compromised version. This security lapse resulted in the main server being affected and the company's website going offline for a week. Recognizing the need for a more reliable solution, the company decided to outsource its website hosting to an e- commerce provider. The company signed a confidentiality agreement concerning product ownership and conducted a thorough review of user access rights to enhance security before transitioning. Based on Scenario 1, which international standard did Northstorm adopt during the second phase of expansion?
Answer options
A: ISO/IEC 27701 Correct answer
B: ISO/IEC 27009
C: ISO/IEC 27003
Correct Answer:
A. ISO/IEC 27701
Explanation

The scenario states that Northstorm adopted an "international standard for personally identifiable information (PII) controllers and PII processors regarding PII processing." ISO/IEC 27701:2019 is the specific international standard that serves as a privacy extension to ISO/IEC 27001. It provides the framework for establishing, implementing, and maintaining a Privacy Information Management System (PIMS). This standard explicitly offers guidance for organizations acting as PII controllers and PII processors, which directly matches the description of the standard adopted by Northstorm.

Why Incorrect

B. ISO/IEC 27009 provides sector-specific guidance on the application of ISO/IEC 27001, not specific requirements for managing Personally Identifiable Information (PII).
C. ISO/IEC 27003 offers general implementation guidance for an Information Security Management System (ISMS) based on ISO/IEC 27001, not specific controls for privacy or PII.

References

1. International Organization for Standardization. (2019). ISO/IEC 27701:2019 Security techniques — Extension to ISO/IEC 27001 and ISO/IEC 27002 for privacy information management — Requirements and guidelines. ISO. The standard's scope (Clause 1) explicitly states it specifies requirements for a PIMS and provides guidance for PII controllers and PII processors.

2. Calder, A., & Watkins, S. (2019). IT Governance: An International Guide to Data Security and ISO 27001/ISO 27002 (7th ed.). Kogan Page. Chapter 15 discusses the ISO 27000 family of standards, identifying ISO 27701 as the key standard for extending an ISMS to a PIMS.

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