ISC2 Governance, Risk and Compliance (CGRC) Practice Question

Your organization is procuring a SaaS analytics tool that will ingest lab results containing patient identifiers. Before any production data is sent to the vendor, which action is explicitly required under HIPAA when a covered entity discloses protected health information to a third-party service provider?

  • Ensure the application is hosted only in a data center that has achieved FedRAMP High authorization.

  • Require the vendor to store all PHI using AES-256 encryption while at rest in its cloud.

  • Execute a written Business Associate Agreement that defines each party's responsibilities for safeguarding PHI.

  • File a data-use notification with the HHS Office for Civil Rights before the transfer occurs.

ISC2 Governance, Risk and Compliance (CGRC)
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