What is a key consideration for assessing external service providers like LeadOps, which will conduct personal information processing operations on Clean-Q’s behalf?

SCENARIO

Clean-Q is a company that offers house-hold and office cleaning services. The company receives requests from consumers via their website and telephone, to book cleaning services. Based on the type and size of service, Clean-Q then contracts individuals that are registered on its resource database – currently managed in-house by Clean-Q IT Support. Because of Clean-Q’s business model, resources are contracted as needed instead of permanently employed.

The table below indicates some of the personal information Clean-Q requires as part of its business operations:

Clean-Q has an internal employee base of about 30 people. A recent privacy compliance exercise has been conducted to align employee data management and human resource functions with applicable data protection regulation. Therefore, the Clean-Q permanent employee base is not included as part of this scenario.

With an increase in construction work and housing developments, Clean-Q has had an influx of requests for cleaning services. The demand has overwhelmed Clean-Q’s traditional supply and demand system that has caused some overlapping bookings.

Ina business strategy session held by senior management recently, Clear-Q invited vendors to present potential solutions to their current operational issues. These vendors included Application developers and Cloud-Q’s solution providers, presenting their proposed solutions and platforms.

The Managing Director opted to initiate the process to integrate Clean-Q’s operations with a cloud solution (LeadOps) that will provide the following solution one single online platform: A web interface that Clean-Q accesses for the purposes of resource and customer management. This would entail uploading resource and customer information.

✑ A customer facing web interface that enables customers to register, manage and submit cleaning service requests online.

✑ A resource facing web interface that enables resources to apply and manage their assigned jobs.

✑ An online payment facility for customers to pay for services.

What is a key consideration for assessing external service providers like LeadOps, which will conduct personal information processing operations on Clean-Q’s behalf?
A . Understanding LeadOps’ costing model.
B. Establishing a relationship with the Managing Director of LeadOps.
C. Recognizing the value of LeadOps’ website holding a verified security certificate.
D. Obtaining knowledge of LeadOps’ information handling practices and information security environment.

View Answer

Answer: D

Explanation:

When engaging an external service provider to process personal information on its behalf, it is important for Clean-Q to have a good understanding of the service provider’s information handling practices and information security environment. This will help Clean-Q assess whether or not the service provider has appropriate measures in place to protect the personal information it entrusts to them.