CGEIT Question #163: Real Exam Question with Answer & Explanation

Question

The CIO of an international enterprise is considering the use of an offshore cloud service provider to store customer data. Which of the following should be he MOST important consideration when making this decision?

Options

• AIT service delivery roles and responsibilities
• BCompliance with applicable legislation
• CLikelihood of natural disasters
• DThe cloud service provider's reputation

Explanation

When considering an offshore cloud service provider for customer data, the most critical factor is ensuring compliance with all applicable national and international legislation and regulations regarding data privacy and residency.

Common mistakes.

• A. IT service delivery roles and responsibilities are important for operational efficiency but are secondary to legal compliance when dealing with sensitive offshore data.
• C. The likelihood of natural disasters is a risk factor for business continuity, but legal compliance for data storage across borders is a more immediate and critical consideration.
• D. A cloud service provider's reputation is an important due diligence factor, but it does not supersede the fundamental legal requirement for data compliance.

Concept tested. Data residency and regulatory compliance in cloud

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