A PLM encounters a data destruction incident impacting borrower data. Which sequence is correct?

Prepare for the Utah Mortgage PLM Exam. Study with flashcards and multiple choice questions, with each question providing hints and explanations. Gear up for test day!

Multiple Choice

A PLM encounters a data destruction incident impacting borrower data. Which sequence is correct?

Explanation:
When borrower data is at risk, the priority is to address regulatory and stakeholder obligations quickly while beginning actions to stop the incident. Notifying affected parties promptly helps comply with breach notification laws and preserves trust, making it the first step in this sequence. After that, containing the incident is essential to stop further data destruction and to preserve evidence for investigation. Once the incident is contained, you can recover or restore the data and then review security controls to prevent a recurrence. Approaches that delay notification risk penalties and damage to trust, while trying to recover data before containment can allow ongoing damage. In practice, containment and notification can occur in parallel, but initiating with notifying affected parties aligns with compliance requirements and keeps the response moving in a responsible order.

When borrower data is at risk, the priority is to address regulatory and stakeholder obligations quickly while beginning actions to stop the incident. Notifying affected parties promptly helps comply with breach notification laws and preserves trust, making it the first step in this sequence. After that, containing the incident is essential to stop further data destruction and to preserve evidence for investigation. Once the incident is contained, you can recover or restore the data and then review security controls to prevent a recurrence. Approaches that delay notification risk penalties and damage to trust, while trying to recover data before containment can allow ongoing damage. In practice, containment and notification can occur in parallel, but initiating with notifying affected parties aligns with compliance requirements and keeps the response moving in a responsible order.

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