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ExamsCAS-003Questions#127
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CAS-003 · Question #127

CAS-003 Question #127: Real Exam Question with Answer & Explanation

The correct answer is D: Improper handling of customer data, loss of intellectual property and reputation damage. The risk of security violations or compromised intellectual property (IP) rights is inherently elevated when working internationally. A key concern with outsourcing arrangements is making sure that there is sufficient protection and security in place for personal information bein

Question

The Chief Executive Officer (CEO) of a large prestigious enterprise has decided to reduce business costs by outsourcing to a third party company in another country. Functions to be outsourced include: business analysts, testing, software development and back office functions that deal with the processing of customer data. The Chief Risk Officer (CRO) is concerned about the outsourcing plans. Which of the following risks are MOST likely to occur if adequate controls are not implemented?

Options

  • AGeographical regulation issues, loss of intellectual property and interoperability agreement issues
  • BImproper handling of client data, interoperability agreement issues and regulatory issues
  • CCultural differences, increased cost of doing business and divestiture issues
  • DImproper handling of customer data, loss of intellectual property and reputation damage

Explanation

The risk of security violations or compromised intellectual property (IP) rights is inherently elevated when working internationally. A key concern with outsourcing arrangements is making sure that there is sufficient protection and security in place for personal information being transferred and/or accessed under an outsourcing agreement.

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