Ace the Certified Application Counselor Exam 2026 – Be the Expert Everyone Needs!

Get more with Examzify Plus

Remove ads, unlock favorites, save progress, and access premium tools across devices.

FavoritesSave progressAd-free
From $9.99Learn more

1 / 400

Why is it important to protect PII?

To enhance consumer trust and compliance

Protecting Personally Identifiable Information (PII) is crucial because it enhances consumer trust and ensures compliance with various regulations and legal frameworks. When organizations safeguard PII, they demonstrate to consumers that they take privacy seriously, which can enhance their reputation and foster long-term customer loyalty. Additionally, many laws and regulations mandate the protection of PII, such as the Health Insurance Portability and Accountability Act (HIPAA) and the General Data Protection Regulation (GDPR), making compliance essential to avoid legal penalties.

While the other options may relate to broader business strategies, such as cost reduction or marketing, they do not directly address the primary reasons for protecting PII. The relationship between trust and compliance with respect to customer data is foundational to maintaining a positive relationship between businesses and their clients.

Get further explanation with Examzify DeepDiveBeta

To reduce operational costs

To increase marketing effectiveness

To limit consumer inquiries

Next Question
Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy