CGEIT · Question #428
A financial services company has implemented the use of a cloud-based centralized customer relationship management (CRM) system. The company has decided to go multi-national. Which of the following…
The correct answer is D. Compliance issues. When a financial services company expands its cloud-based CRM multi-nationally, the ERM committee's primary consideration must be compliance issues, due to varying international data privacy and financial regulations. This ensures adherence to diverse legal and regulatory…
Question
A financial services company has implemented the use of a cloud-based centralized customer relationship management (CRM) system. The company has decided to go multi-national. Which of the following should be the enterprise risk management (ERM) committee's PRIMARY consideration?
Options
- ASecurity issues
- BVendor capability
- CReturn on investment (ROI)
- DCompliance issues
How the community answered
(45 responses)- A9% (4)
- B18% (8)
- C4% (2)
- D69% (31)
Why each option
When a financial services company expands its cloud-based CRM multi-nationally, the ERM committee's primary consideration must be compliance issues, due to varying international data privacy and financial regulations. This ensures adherence to diverse legal and regulatory frameworks across different countries.
Security issues are always critical, but multi-national expansion primarily escalates compliance complexity because different regions have different security and data handling mandates.
Vendor capability is a consideration during selection and ongoing management, but the primary new risk introduced by multi-national expansion itself is regulatory compliance.
Return on investment (ROI) is a business objective, not a primary enterprise risk management consideration, although risks can impact ROI.
Expanding operations multi-nationally, especially for a financial services company handling customer data in the cloud, immediately introduces a complex landscape of diverse international data privacy laws (e.g., GDPR, CCPA, local financial regulations). Compliance with these varying legal and regulatory requirements becomes the paramount risk for the ERM committee to address.
Concept tested: Multi-national cloud compliance risks
Source: learn.microsoft.com/en-us/compliance/regulatory/regulatory-compliance
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