Human Resources Certification Institute (HRCI) Practice Exam

Following a major data breach, what should the VP of Human Resources do first?

1. Evaluate remaining data risk areas

2. Research credit monitoring services

3. Delay notifying investors

4. Assess the breach and notify investors promptly

The correct answer is: Assess the breach and notify investors promptly

The first action the VP of Human Resources should take after a major data breach is to assess the breach and notify investors promptly. This step is crucial because it ensures that stakeholders are immediately informed of the situation, allowing for transparency and trust in the management of the company. Prompt notification helps to mitigate potential panic among investors and reassures them that the company is actively managing the issue. Additionally, informing investors can be part of regulatory compliance requirements, depending on the nature of the breach and the information compromised. By assessing the breach, the VP can gather specific information about the extent of the breach, what data was compromised, and any impact it may have on the organization and its stakeholders. This context is important for investors as they need to understand the implications of the breach on the company's operations, reputation, and potential legal implications. In contrast, evaluating remaining data risk areas and researching credit monitoring services, while important steps following a breach, should come after the immediate action of notifying investors. Delaying notification could result in a lack of trust from stakeholders and may complicate recovery efforts.