Exam 1z0-1147 Topic 1 Question 99 Discussion

The default encryption-key model for an Exadata database on Oracle AI Database@Azure is Oracle- Managed Keys (OMK) . Under this model, Oracle automatically generates the Transparent Data Encryption master encryption key and stores it in an Oracle Wallet secured within the database environment.
Oracle manages the complete lifecycle of this default key, including generation, secure storage, rotation, backup, and restoration. No additional customer-side key-management infrastructure is required.
OCI Vault, Oracle Key Vault, and Azure Key Vault represent customer-managed key alternatives. When an organization selects one of these mechanisms, the TDE master key is managed outside the local Oracle Wallet, enabling centralized customer control, auditing, rotation policy, and separation of duties. However, none is the default unless the customer explicitly configures a customer-managed key architecture.
Oracle's current security documentation explicitly identifies Oracle Wallet as the default encryption-key setting for Exadata Database Service on Oracle AI Database@Azure.
Therefore, C. Oracle Wallet is correct.
Study Guide reference: Secure Oracle AI Database@Azure - TDE, Oracle-managed keys and Oracle Wallet.