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CCSK · Question #89

Highly regulated industries such as finance and health care should consider the impact of cloud providers operating in diverse geographic locations and ______________.

The correct answer is D. Legal jurisdictions. Regulated industries in finance and healthcare must assess the legal jurisdictions in which cloud providers operate because data stored in different countries is subject to different laws, privacy rules, and government access rights.

Legal, Risk, and Compliance

Question

Highly regulated industries such as finance and health care should consider the impact of cloud providers operating in diverse geographic locations and ______________.

Options

  • AVirtual environments
  • BSparsely populated areas
  • CWithout licenses
  • DLegal jurisdictions
  • ENone of the above

How the community answered

(19 responses)
  • A
    5% (1)
  • C
    16% (3)
  • D
    74% (14)
  • E
    5% (1)

Why each option

Regulated industries in finance and healthcare must assess the legal jurisdictions in which cloud providers operate because data stored in different countries is subject to different laws, privacy rules, and government access rights.

AVirtual environments

Virtual environments are a technical infrastructure concept unrelated to the regulatory or legal concerns arising from geographic distribution.

BSparsely populated areas

Population density of an area has no bearing on regulatory compliance or data sovereignty requirements.

CWithout licenses

Whether a cloud provider operates without licenses is a vendor vetting concern, not a consequence of operating in diverse geographic locations.

DLegal jurisdictionsCorrect

When a cloud provider operates across diverse geographic locations, data may reside in multiple countries, each with its own legal jurisdiction and regulatory framework. Finance and healthcare organizations are bound by regulations such as GDPR, HIPAA, or local data sovereignty laws that restrict where data can be stored and who can compel its disclosure. Failure to account for legal jurisdictions can result in regulatory violations, fines, and unauthorized disclosure of sensitive data.

ENone of the above

Option D is correct, so 'None of the above' is not applicable.

Concept tested: Data sovereignty and legal jurisdiction in cloud compliance

Source: https://cloudsecurityalliance.org/research/guidance/

Topics

#legal jurisdiction#data residency#regulated industries#geographic compliance

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