An organization is moving internal core data-processing functions related to customer data to a global public cloud provider that uses aggregated services from other partner organizations. Which of…

Question

Options

• AInternal data integrity standards and outsourcing contracts and partnerships
• BData ownership, internal data classification, and risk profiling of outsourcers
• CCompany audit functions, cross-boarding jurisdictional challenges, and export controls
• DData privacy regulations, data sovereignty, and third-party providers

• A
  9% (3)
• B
  6% (2)
• C
  26% (9)
• D
  59% (20)

Explanation

Migrating customer data to a global public cloud that aggregates services from partner organizations introduces three primary compliance concerns: (1) Data privacy regulations such as GDPR or CCPA, which impose strict rules on how customer data is handled; (2) Data sovereignty, meaning the data may physically reside in or transit through jurisdictions with conflicting legal requirements; and (3) Third-party provider risks, since partners in the cloud provider's supply chain also handle the data. The other options describe real concerns but are either internal governance issues (A, B) or partially overlap without capturing the most critical outsourcing-specific risks as precisely as D.

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