What should a PLM do to ensure data sharing complies with privacy laws?

What should a PLM do to ensure data sharing complies with privacy laws?

• A. Share data with third parties freely if the borrower consent is not specified.
• B. Obtain customer consent for data sharing and protect borrower confidentiality.
• C. Rely on implied consent in all instances.
• D. Store data without access controls.

Answer: (B)

Protecting borrower privacy when sharing data requires explicit consent and strong confidentiality measures. In lending, laws generally require that data be shared only with proper authorization, for clearly stated purposes, and with safeguards to keep information confidential. The right approach is to obtain customer consent for data sharing and protect borrower confidentiality—making sure the consent is informed, specific about who will access the data and for what purpose, and that appropriate controls are in place so access is limited to need-to-know. Implementing technical and administrative safeguards (such as access controls, encryption, and audit trails) helps meet legal requirements and reduces the risk of improper disclosures. Sharing data freely without consent would violate privacy laws, relying on implied consent is often insufficient, and storing data without access controls creates clear security risks.

Protecting borrower privacy when sharing data requires explicit consent and strong confidentiality measures. In lending, laws generally require that data be shared only with proper authorization, for clearly stated purposes, and with safeguards to keep information confidential. The right approach is to obtain customer consent for data sharing and protect borrower confidentiality—making sure the consent is informed, specific about who will access the data and for what purpose, and that appropriate controls are in place so access is limited to need-to-know. Implementing technical and administrative safeguards (such as access controls, encryption, and audit trails) helps meet legal requirements and reduces the risk of improper disclosures.

Sharing data freely without consent would violate privacy laws, relying on implied consent is often insufficient, and storing data without access controls creates clear security risks.