Which of the following is the best example of a key component of regulated PII?

The best example of a key component of regulated Personally Identifiable Information (PII) is mandatory breach reporting. This requirement is critical in the regulatory landscape, particularly concerning how organizations handle and respond to data breaches that involve PII. Mandatory breach reporting ensures that organizations notify affected individuals and relevant authorities when a breach occurs, thereby enhancing transparency and accountability in the management of sensitive personal data.

This requirement plays a vital role in retaining consumer trust and complying with legal frameworks, such as the General Data Protection Regulation (GDPR) in Europe or state-specific laws in the United States, which mandate reporting breaches within a defined timeframe. Failure to comply with these reporting requirements can lead to significant legal and financial repercussions for organizations.

While items that should be implemented and audit rights of subcontractors are important aspects of data governance and compliance frameworks, they do not directly pertain to the specific handling of PII during a data breach scenario. PCI DSS, on the other hand, focuses specifically on payment card information rather than the broader category of PII, making it less relevant to the context of regulated PII.