Certified Information Privacy Professional – Europe (CIPP/E) — Question 149

A company is hesitating between Binding Corporate Rules and Standard Contractual Clauses as a global data transfer solution. Which of the following statements would help the company make an effective decision?

Answer options

• A. Binding Corporate Rules are especially recommended for small and medium companies.
• B. The data exporter does not need to be located in the EU for the standard Contractual Clauses.
• C. Binding Corporate Rules provide a global solution for all the entities of a company that are bound by the intra-group agreement.
• D. The company will need the prior authorization of all EU data protection authorities for concluding Standard Contractual Clauses.

Correct answer: C

Explanation

The correct answer is C because Binding Corporate Rules allow for a unified data transfer solution across all entities within a corporate group, ensuring compliance with data protection laws. Option A is incorrect as Binding Corporate Rules are typically more suitable for large organizations due to their complexity. Option B is misleading since the data exporter must be in the EU for Standard Contractual Clauses to apply effectively. Option D is also incorrect because Standard Contractual Clauses do not require prior authorization from all EU data protection authorities.