QuestionQ23

VerifiedPrivacy Risk Management and Compliance

An organization chooses to outsource analytics of its customers’ personal data to a third party to understand spending habits. Which of the following is the MOST important contractual consideration?

Explanation

The contract should clearly define each party’s data responsibilities, including permitted processing, protection requirements, ownership and control, compliance duties, incident notification, and obligations when the engagement ends. This establishes accountability for personal data handled by the third party.

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