Which of the following is the most likely reason for reviewing these laws?

A compliance officer is reviewing the data sovereignty laws in several countries where the organization has no presence.

Which of the following 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

View Answer

Answer: C

Explanation:

Reviewing data sovereignty laws in countries where the organization has no presence is likely due to concerns about regulatory enforcement. Data sovereignty laws dictate how data can be stored, processed, and transferred across borders. Understanding these laws is crucial for compliance, especially if the organization handles data that may be subject to foreign regulations.

A. The organization is performing due diligence of potential tax issues: This is less likely as tax issues are generally not directly related to data sovereignty laws.

B. The organization has been subject to legal proceedings in countries where it has a presence:

While possible, this does not explain the focus on countries where the organization has no presence.

C. The organization is concerned with new regulatory enforcement in other countries: This is the most likely reason. New regulations could impact the organization’s operations, especially if they involve data transfers or processing data from these countries.

D. The organization has suffered brand reputation damage from incorrect media coverage: This is less relevant to the need for reviewing data sovereignty laws.

References:

CompTIA Security+ Study Guide

GDPR and other global data protection regulations

"Data Sovereignty: The Future of Data Protection?" by Mark Burdon