Which of the following is the GREATEST concern for an organization subject to cross-border data transfer regulations when using a cloud service provider to store and process data?

Question

Options

• AThe service provider has denied the organization's request for right to audit.
• BPersonal data stored on the cloud has not been anonymized.
• CThe extent of the service provider's access to data has not been established.
• DThe data is stored in a region with different data protection requirements.

• A
  10% (5)
• B
  4% (2)
• C
  4% (2)
• D
  81% (39)

Explanation

Cross-border data transfer regulations (such as GDPR Chapter V) exist precisely because different jurisdictions have different levels of data protection. When data is stored in a region with weaker or incompatible data protection requirements, the organization may be in direct violation of its home jurisdiction's laws - which can result in regulatory fines, enforcement action, and loss of data subject rights. The other options (denied audit rights, lack of anonymization, unclear provider access) are legitimate concerns but are operationally addressable through contract or policy. Jurisdictional mismatch is a structural legal risk that cannot be easily remediated after the fact and represents the greatest compliance exposure.

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