CRISC Certified in Risk and Information Systems ControlGovernanceHard
A data analytics company is expanding into new international markets, each with distinct data privacy regulations (e.g., GDPR, CCPA). The board is concerned about potential non-compliance risks. To ensure effective governance and compliance, which of the following actions should the Chief Information Security Officer (CISO) prioritize?
- AInvest in advanced data encryption technologies to protect all customer data globally.
- BConduct a comprehensive legal and regulatory impact assessment for each target market.
- CDevelop a universal data privacy policy that applies to all regions, superseding local laws.
- DDelegate responsibility for local compliance to regional business unit managers.
Show answer & explanationAnswer & explanation
Correct answer: B. Conduct a comprehensive legal and regulatory impact assessment for each target market.
When entering diverse regulatory environments, a comprehensive legal and regulatory impact assessment is crucial. It identifies specific requirements, gaps, and necessary adjustments to ensure compliance, forming the basis for effective governance and risk mitigation.
Why the other options are wrong
- A. While encryption is important for data protection, it does not guarantee compliance with all legal and regulatory aspects of data privacy.
- C. A universal policy cannot supersede local laws and would likely lead to non-compliance in stricter jurisdictions.
- D. Delegating without proper oversight and a clear framework from a central assessment can lead to inconsistent compliance and increased risk.
Legal, Regulatory, and Contractual Requirements
Obligations arising from laws, government regulations, and agreements that an organization must adhere to, impacting its risk posture.
- Vary significantly by industry and geography.
- Non-compliance can lead to fines, reputational damage, and legal action.
- Require continuous monitoring and adaptation.
Memory trick: Assess the laws before crossing borders.