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CRISC · Question #493

Which of the following presents the GREATEST privacy risk related to personal data processing for a global organization?

The correct answer is D. Personal data processing occurs in an offshore location with a data sharing agreement. Processing personal data in an offshore location, even with an agreement, presents the greatest privacy risk for a global organization due to complex jurisdictional data protection laws and enforcement challenges.

Submitted by omar99· Apr 18, 2026IT Risk Assessment

Question

Which of the following presents the GREATEST privacy risk related to personal data processing for a global organization?

Options

  • APrivacy risk awareness training has not been conducted across the organization.
  • BThe organization has not incorporated privacy into its risk management framework.
  • CThe organization allows staff with access to personal data to work remotely.
  • DPersonal data processing occurs in an offshore location with a data sharing agreement.

How the community answered

(28 responses)
  • A
    25% (7)
  • B
    11% (3)
  • C
    7% (2)
  • D
    57% (16)

Why each option

Processing personal data in an offshore location, even with an agreement, presents the greatest privacy risk for a global organization due to complex jurisdictional data protection laws and enforcement challenges.

APrivacy risk awareness training has not been conducted across the organization.

Lack of privacy risk awareness training is a significant internal control weakness, but it is typically less severe than the inherent risks of cross-border data transfers to potentially less stringent jurisdictions.

BThe organization has not incorporated privacy into its risk management framework.

Not incorporating privacy into the risk management framework is a systemic flaw, yet the direct operational risk of cross-jurisdictional data processing often carries higher, more immediate compliance penalties.

CThe organization allows staff with access to personal data to work remotely.

Allowing staff with access to personal data to work remotely introduces risks, but these can often be mitigated through technical controls and policy, unlike the fundamental jurisdictional challenges of offshore processing.

DPersonal data processing occurs in an offshore location with a data sharing agreement.Correct

Offshore data processing introduces significant complexity in complying with varying international data protection laws, potential conflicts of law, challenges in exercising data subject rights, and difficulties in regulatory oversight across different jurisdictions, elevating the overall privacy risk.

Concept tested: Data privacy risk in global operations

Source: https://gdpr-info.eu/art-44-gdpr/

Topics

#Privacy Risk#Cross-border Data Transfer#Jurisdictional Risk#Data Processing

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