A multinational enterprise is planning to migrate to cloud-based systems. Which of the following should be of MOST concern to the risk management committee?

While cost considerations are important, they are typically a financial and strategic concern, whereas regulatory compliance carries legal and reputational risks that can severely impact the business.

Multinational enterprises face a complex web of varying international, national, and industry-specific regulations regarding data residency, privacy (e.g., GDPR, CCPA), and cross-border data transfers. Migrating to the cloud introduces challenges in ensuring that chosen cloud providers and services comply with all applicable legal requirements across multiple jurisdictions, making it a primary risk.

Resource alignment is an operational challenge that the migration project team addresses, not typically the MOST pressing concern for the risk management committee compared to legal compliance.

Security breaches are a critical concern in cloud migration, but regulatory non-compliance can often stem from, or be exacerbated by, security issues and has broader legal and financial ramifications, especially for multinational entities. Compliance often dictates security requirements.