Certified Data Privacy Solutions Engineer (CDPSE) — Question 38

Which method BEST reduces the risk related to sharing of personal data between a software as a service (SaaS) customer and the third party storing it?

Answer options

• A. Data hashing
• B. Data encryption
• C. Data pseudonymization
• D. Data anonymization

Correct answer: D

Explanation

Data anonymization is the best method because it removes personally identifiable information, ensuring that individuals cannot be identified from the data, thus significantly reducing risk. Data hashing, encryption, and pseudonymization do not provide the same level of protection, as they can still allow for identification or potential data breaches.