An enterprise decides to accept the IT risk of a subsidiary located in another country even though it exceeds the enterprise's risk appetite. Which of the following would be the BEST justification for

Risk framework alignment would typically suggest harmonizing risk management, which contradicts accepting risk that exceeds the enterprise's appetite.

Local market common practices might influence risk, but they are generally not a compelling justification to exceed a defined risk appetite unless those practices are legally mandated.

Compliance with local regulations is a non-negotiable legal requirement in many countries; therefore, an enterprise might accept higher IT risks if the regulatory environment demands specific practices or data handling that inherently increase risk beyond its standard appetite.

Technical gaps among subsidiaries identify areas for improvement but do not justify exceeding an enterprise risk appetite; rather, they call for remediation.