nerdexam
CompTIA

SY0-501 · Question #61

The Chief Security Officer (CISO) at a multinational banking corporation is reviewing a plan to upgrade the entire corporate IT infrastructure. The architecture consists of a centralized cloud…

The correct answer is C. Store customer data based on national borders, ensure end-to end encryption between ATMs. To provide the most complete data protection for a multinational banking corporation, it is essential to implement both data residency based on national borders and end-to-end encryption for all critical communication paths.

Submitted by priya_blr· Mar 4, 2026Security architecture

Question

The Chief Security Officer (CISO) at a multinational banking corporation is reviewing a plan to upgrade the entire corporate IT infrastructure. The architecture consists of a centralized cloud environment hosting the majority of data, small server clusters at each corporate location to handle the majority of customer transaction processing, ATMs, and a new mobile banking application accessible from smartphones, tablets, and the Internet via HTTP. The corporation does business having varying data retention and privacy laws. Which of the following technical modifications to the architecture and corresponding security controls should be implemented to provide the MOST complete protection of data?

Options

  • ARevoke exiting root certificates, re-issue new customer certificates, and ensure all
  • BEnsure all data is encryption according to the most stringent regulatory guidance applicable,
  • CStore customer data based on national borders, ensure end-to end encryption between ATMs,
  • DInstall redundant servers to handle corporate customer processing, encrypt all customer data

How the community answered

(49 responses)
  • A
    16% (8)
  • B
    4% (2)
  • C
    73% (36)
  • D
    6% (3)

Why each option

To provide the most complete data protection for a multinational banking corporation, it is essential to implement both data residency based on national borders and end-to-end encryption for all critical communication paths.

ARevoke exiting root certificates, re-issue new customer certificates, and ensure all

Revoking and re-issuing certificates primarily addresses certificate lifecycle management and trust but does not directly implement data residency requirements or comprehensive data-at-rest encryption.

BEnsure all data is encryption according to the most stringent regulatory guidance applicable,

While ensuring data encryption is crucial, this choice overlooks the critical requirement for data residency based on national borders to comply with varying international data retention and privacy laws.

CStore customer data based on national borders, ensure end-to end encryption between ATMs,Correct

Storing customer data based on national borders directly addresses the challenge of varying data retention and privacy laws across different countries, ensuring regulatory compliance. Simultaneously, ensuring end-to-end encryption between ATMs, mobile banking applications, and the corporate data center provides comprehensive protection for sensitive customer transactions and information in transit, safeguarding against interception or tampering.

DInstall redundant servers to handle corporate customer processing, encrypt all customer data

Installing redundant servers improves availability and disaster recovery, but it does not address the fundamental requirements for data residency to comply with varying national privacy laws.

Concept tested: Data residency, end-to-end encryption, regulatory compliance

Source: https://learn.microsoft.com/en-us/compliance/regulatory/data-residency-overview

Topics

#data sovereignty#regulatory compliance#encryption#cloud architecture

Community Discussion

No community discussion yet for this question.

Sign up to join the discussion
Full SY0-501 Practice