OneTrust Certified Privacy Professional Practice Exam

The distinction between 'data processing' and 'data storage' is primarily centered around the functionality and purpose each serves in data management. Data processing refers to the various operations performed on personal data, which may include collecting, organizing, modifying, or analyzing this data to derive meaningful information or insights. This can be anything from simple data entry tasks to complex algorithms that analyze trends or generate reports.

On the other hand, data storage is a more passive concept that involves retaining data in a specific location, such as databases or cloud systems. It does not involve manipulating or analyzing the data; instead, the focus is solely on preserving the data for future use. Thus, data storage is simply about holding data without necessarily interacting with it, while data processing encompasses a broader range of activities that transform data into a usable format.

Other options do not accurately capture the essence of the distinction. For instance, the notion that data processing is only about handling physical data does not account for the digital nature of contemporary data, while asserting that data processing always requires user consent does not reflect situations where processing is permissible under other legal bases. The idea that data storage occurs before data processing is not universally true, as both can happen concurrently or in varied sequences depending on the context. Thus,