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ExamsCAS-003Questions#888
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CAS-003 · Question #888

CAS-003 Question #888: Real Exam Question with Answer & Explanation

The correct answer is A: The data sovereignty laws can vary between various jurisdictions, especially regarding consumer. Data sovereignty is the principle that data is subject to the laws and governance of the country where it is stored or processed. Different jurisdictions impose dramatically different requirements on consumer data - the EU's GDPR, China's PIPL, Brazil's LGPD, and others each have

Question

The president of an online retail company has decided the company needs to increase its market size by targeting more countries in order to increase sales. All customer data is currently stored in the same country as the company's headquarters. Which of the following will be the GREATEST concern of the Chief Information Security Officer (CISO) when customers from foreign countries become customers?

Options

  • AThe data sovereignty laws can vary between various jurisdictions, especially regarding consumer
  • BMany foreign countries are currently blocked by the geolocation of the IP address at the firewall
  • CThe likelihood of an outage to the company's servers is Increased due to higher latency between
  • DThe company's incident response team will need to include personnel from every new country to

Explanation

Data sovereignty is the principle that data is subject to the laws and governance of the country where it is stored or processed. Different jurisdictions impose dramatically different requirements on consumer data - the EU's GDPR, China's PIPL, Brazil's LGPD, and others each have distinct rules about consent, storage location, cross-border transfers, and breach notification. Since all data currently resides in the company's home country, serving foreign customers may create immediate legal violations. The CISO's greatest concern is compliance risk: unauthorized cross-border data transfers, mandatory local data residency, and exposure to extraterritorial enforcement. Options B, C, and D describe operational or logistical concerns, not primary security or legal compliance risks.

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