OneTrust Certified Privacy Professional Practice Exam

In what scenario must a Data Protection Officer be appointed?

1. Only for large organizations.

2. When handling sensitive personal data on a large scale.

3. When a company has a legal team.

4. Only in the public sector.

The correct answer is: When handling sensitive personal data on a large scale.

A Data Protection Officer (DPO) must be appointed particularly when an organization processes sensitive personal data on a large scale. This requirement is rooted in various data protection regulations, such as the General Data Protection Regulation (GDPR) in the European Union, which emphasizes that the nature of the data being processed and the scale of its processing are critical factors in determining the necessity of a DPO. Sensitive personal data includes information related to health, race, sexual orientation, and other categories that require higher levels of protection due to their potential to infringe upon individual privacy rights. When such data is handled extensively, the organization must ensure compliance with data protection laws, mitigate risks to individuals' rights, and adopt suitable security measures. Appointing a DPO helps organizations achieve these goals by overseeing data protection strategies, ensuring regulatory compliance, and acting as a point of contact for data subjects and regulatory authorities. The other scenarios mentioned do not universally justify the appointment of a DPO. For instance, not all large organizations will handle sensitive data on a large scale, and a legal team does not replace the need for a specialized DPO. Furthermore, while DPOs are obligatory in the public sector, the requirement transcends this boundary, applying to private sector entities as