QuestionQ106

Governance, Risk, and Compliance

A compliance officer is examining data sovereignty laws in several countries in which the organization has no presence. What is the most likely reason for reviewing these laws?

  • A The organization is performing due diligence of potential tax issues.
  • B The organization has been subject to legal proceedings in countries where it has a presence.
  • C The organization is concerned with new regulatory enforcement in other countries.
  • D The organization has suffered brand reputation damage from incorrect media coverage.
Explanation

Data sovereignty requirements can impose obligations on organizations that handle residents’ data across borders, regardless of whether the organization has a physical presence in the country. Monitoring those laws helps identify exposure to new or increased regulatory enforcement in other jurisdictions.

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