Question 1

SCENARIO

Please use the following to answer the next question:

ProStorage is a multinational cloud storage provider headquartered in the Netherlands. Its CEO. Ruth Brown, has developed a two-pronged strategy for growth: 1) expand ProStorage s global customer base and 2) increase ProStorage's sales force by efficiently onboarding effective teams. Enacting this strategy has recently been complicated by Ruth's health condition, which has limited her working hours, as well as her ability to travel to meet potential customers. ProStorage's Human Resources department and Ruth's Chief of Staff now work together to manage her schedule and ensure that she is able to make all her medical appointments The latter has become especially crucial after Ruth's last trip to India, where she suffered a medical emergency and was hospitalized m New Delhi Unable to reach Ruths family, the hospital reached out to ProStorage and was able to connect with her Chief of Staff, who in coordination with Mary, the head of HR. provided information to the doctors based on accommodate on requests Ruth made when she started a: ProStorage

In support of Ruth's strategic goals of hiring more sales representatives, the Human

Resources team is focused on improving its processes to ensure that new

employees are sourced, interviewed, hired, and onboarded efficiently. To help with

this, Mary identified two vendors, HRYourWay, a German based company, and

InstaHR, an Australian based company. She decided to have both vendors go

through ProStorage's vendor risk review process so she can work with Ruth to

make the final decision. As part of the review process, Jackie, who is responsible

for maintaining ProStorage's privacy program (including maintaining controller

BCRs and conducting vendor risk assessments), reviewed both vendors but

completed a transfer impact assessment only for InstaHR. After her review of both

boasted a more established privacy program and provided third-party attestations,

whereas HRYourWay was a small vendor with minimal data protection operations.

Thus, she recommended InstaHR.

ProStorage's marketing team also worked to meet the strategic goals of the

company by focusing on industries where it needed to grow its market share. To

help with this, the team selected as a partner UpFinance, a US based company

with deep connections to financial industry customers. During ProStorage's

diligence process, Jackie from the privacy team noted in the transfer impact

assessment that UpFinance implements several data protection measures

including end-to-end encryption, with encryption keys held by the customer.

Notably, UpFinance has not received any government requests in its 7 years of

business. Still, Jackie recommended that the contract require UpFinance to notify

ProStorage if it receives a government request for personal data UpFinance

processes on its behalf prior to disclosing such data.

What transfer mechanism should Jackie recommend for using InstaHR?

AAdequacy

BBinding corporate rules.

CExplicit consent of employees.

DStandard contractual clauses

Answer : D

According to the GDPR, any transfer of personal data to a third country or an international organisation must be based on an adequacy decision by the Commission, appropriate safeguards by the data exporter and importer, or derogations for specific situations1. In this scenario, InstaHR is an Australian based company that processes personal data on behalf of ProStorage, a Dutch based company.Australia is not recognised by the Commission as a country that provides an adequate level of data protection2, so the adequacy option is not available.Binding corporate rules (BCRs) are internal rules adopted by multinational groups of companies or organisations that define their global policy with regard to the international transfers of personal data within the same corporate group to entities located in countries that do not provide an adequate level of protection3. However, BCRs are not applicable in this case, as InstaHR is not part of the same corporate group as ProStorage.Explicit consent of employees is a possible derogation for specific situations, but it is not a reliable or practical transfer mechanism, as it must be freely given, specific, informed and unambiguous, and it can be withdrawn at any time4. Therefore, the most suitable transfer mechanism for using InstaHR is standard contractual clauses (SCCs). SCCs are contractual clauses that have been pre-approved by the Commission and that provide appropriate safeguards for data protection when transferring personal data from the EU/EEA to third countries. SCCs are legally binding and enforceable by data subjects, and they impose obligations on both the data exporter and the data importer.SCCs are widely used by data controllers and processors as a transfer mechanism under the GDPR.Reference:1: Art.44 GDPR - General principle for transfers22: Adequacy decisions - European Commission13: Binding corporate rules - European Commission14: Article 7 of the GDPR.: Standard Contractual Clauses (SCC) - European Commission1.

Question 2