CRISC IT Risk Identification — All Questions With Answers

Question 1

A company recently experienced a data breach due to an unpatched vulnerability in a public-facing web application. During the post-incident review, the IT risk manager notes that the vulnerability was identified by the vulnerability scanner six months ago but was not remediated because the patch required a critical database server restart. Which of the following is the BEST risk treatment decision to prevent a recurrence?

Accepted Answer

Implement a compensating control such as a web application firewall.. Option C is correct because implementing a web application firewall (WAF) as a compensating control provides virtual patching, blocking exploitation attempts at the application layer (e.g., SQL injection, path traversal) without requiring a database server restart. This directly addresses the root cause—the unpatched vulnerability—while avoiding the operational disruption that prevented the patch from being applied. A WAF can inspect HTTP/HTTPS traffic and filter malicious payloads based on signatures or behavioral rules, effectively reducing risk to an acceptable level until the next maintenance window.

Answer

Ignore the vulnerability until the next maintenance window.

Answer

Escalate the risk to senior management for acceptance.

Answer

Accept the risk based on the low likelihood of exploitation.

Question 2

During a risk assessment, an organization identifies that its legacy ERP system has a high likelihood of failure during peak transaction periods. The system supports critical financial operations. The risk owner proposes to upgrade the system, but the project would take 18 months and require significant capital investment. The CEO questions whether the risk can be reduced to an acceptable level more quickly. Which of the following is the MOST appropriate immediate risk response?

Accepted Answer

Implement enhanced monitoring and manual fallback procedures.. Enhanced monitoring and manual fallback procedures directly address the immediate risk of system failure during peak periods by providing early detection and a contingency plan to maintain critical financial operations. This response can be implemented quickly without the 18-month timeline and capital investment required for a full system upgrade, aligning with the CEO's request for a faster risk reduction.

Answer

Increase cyber insurance coverage.

Answer

Accept the risk and budget for potential losses.

Answer

Outsource the ERP hosting to a cloud provider.

Question 3

An organization is considering migrating its customer database to a public cloud provider. Which of the following is the PRIMARY risk identification technique that should be used to identify potential data exposure risks?

Accepted Answer

Threat modeling. Threat modeling is the primary risk identification technique for proactively identifying potential data exposure risks during a cloud migration. It systematically analyzes the system architecture, data flows, and trust boundaries to uncover threats such as misconfigured access controls, insecure APIs, or data leakage between tenants. Unlike reactive techniques, threat modeling focuses on design-level vulnerabilities before they are exploited.

Answer

Vulnerability scanning

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Penetration testing

Answer

Business impact analysis

Question 4

An IT risk manager is reviewing the results of a recent risk assessment. The organization has a risk appetite that allows for low residual risk. One identified risk has an inherent risk score of 15 (on a scale of 1-25) and currently has no controls. Which of the following is the BEST recommendation for this risk?

Accepted Answer

Implement controls to reduce the residual risk to an acceptable level.. The inherent risk score of 15 (out of 25) is moderate, but the organization's risk appetite allows only low residual risk. Since there are currently no controls, the residual risk equals the inherent risk of 15, which exceeds the acceptable threshold. Therefore, implementing controls is the best recommendation to reduce the residual risk to a level that aligns with the risk appetite.

Answer

Accept the risk because the score is moderate.

Answer

Transfer the risk via cyber insurance.

Answer

Avoid the risk by discontinuing the business process.

Question 5

A multinational corporation uses a common identity management system (IdM) across all subsidiaries. During a risk assessment, it is discovered that the IdM system has a critical vulnerability that could allow privilege escalation. The patch requires a 4-hour downtime. The risk manager must decide the best course of action considering the organization's risk appetite of 'low' and the fact that the IdM system is critical for business operations. Which of the following is the BEST approach?

Accepted Answer

Schedule the patch during the next maintenance window.. Option B is correct because scheduling the patch during the next maintenance window aligns with the organization's low risk appetite by addressing the critical vulnerability in a controlled manner, while minimizing operational disruption. The IdM system is critical for business operations, so applying the patch immediately during business hours (Option C) would cause unacceptable downtime, and delaying indefinitely (Option D) would violate the low risk appetite. A 4-hour downtime is typical for identity management systems like Active Directory or LDAP, where patching requires a reboot or service restart, and a planned maintenance window allows for proper testing and rollback procedures.

Answer

Implement a compensating control and delay patching.

Answer

Apply the patch immediately during business hours.

Answer

Accept the risk and postpone patching indefinitely.

Question 6

Which of the following is the BEST example of a key risk indicator (KRI) for the risk of unauthorized access to sensitive data?

Accepted Answer

Percentage of users with access to sensitive data. Option C is correct because a KRI must directly measure the likelihood or impact of a specific risk. The percentage of users with access to sensitive data is a direct indicator of the attack surface for unauthorized access; a higher percentage increases the probability that an unauthorized user could gain access, making it a leading indicator for that risk.

Answer

Average server uptime

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Number of firewalls deployed

Answer

Number of security awareness trainings completed

Question 7

A large retailer is implementing a new point-of-sale (POS) system. The project manager wants to identify risks related to payment card data security. Which risk identification technique would be MOST effective for this purpose?

Accepted Answer

Data Flow Diagram (DFD) review. A Data Flow Diagram (DFD) review is most effective because it visually maps how payment card data moves through the POS system—from card swipe to authorization to storage—identifying exactly where data is at rest, in transit, or processed. This allows the team to pinpoint specific PCI DSS control gaps (e.g., unencrypted transmission, unnecessary retention) that other techniques might miss.

Answer

Risk register review from past projects

Answer

Brainstorming session with the project team

Answer

SWOT analysis

Question 8

During a risk assessment, an organization identifies that its remote workforce uses personal devices for work. The risk manager is concerned about data leakage. The organization has a risk appetite that is 'moderate' and wants to treat the risk. Which of the following is the MOST effective risk treatment option?

Accepted Answer

Implement a Mobile Device Management (MDM) policy with containerization. Option C is the most effective because MDM with containerization creates a separate, encrypted work profile on the personal device, isolating corporate data from personal apps and data. This directly addresses data leakage by enforcing security policies (e.g., remote wipe of the work container only) without requiring full control over the entire device, aligning with a 'moderate' risk appetite that seeks a balance between security and usability.

Answer

Implement a VPN for remote access

Answer

Require full disk encryption on all personal devices

Answer

Ban the use of personal devices for work

Question 9

Which of the following is the PRIMARY purpose of a risk register?

Accepted Answer

To document identified risks, their analysis, and planned responses. The risk register is the central repository for documenting identified risks, their analysis (including likelihood and impact), and the planned responses. While it can be used to track remediation actions, its primary purpose is to serve as the authoritative record of risk information, enabling informed decision-making and ongoing risk management.

Answer

To track the status of risk remediation actions

Answer

To provide real-time alerts for risk events

Answer

To satisfy regulatory compliance requirements

Question 10

Which TWO of the following are key risk identification techniques used to identify threats and vulnerabilities in IT systems? (Select exactly 2.)

Accepted Answer

Vulnerability scanning. Vulnerability scanning is a key risk identification technique that systematically probes IT systems for known vulnerabilities, such as unpatched software or misconfigurations, using tools like Nessus or OpenVAS. It directly identifies weaknesses that could be exploited by threats, making it essential for the risk identification phase.

Answer

Risk mitigation

Answer

Risk transfer

Answer

Access control implementation

Question 11

Which THREE of the following are valid risk identification methods according to ISACA's Risk IT Framework? (Select exactly 3.)

Accepted Answer

Scenario analysis. Scenario analysis is a valid risk identification method under ISACA's Risk IT Framework because it involves developing hypothetical scenarios to identify potential threats and vulnerabilities that could lead to risk events. This technique helps organizations anticipate and prepare for plausible adverse situations by analyzing their impact on IT assets and business objectives.

Answer

Segregation of duties

Answer

Risk acceptance

Question 12

Which TWO of the following are primary sources of risk identification for IT projects? (Select exactly 2.)

Accepted Answer

Project documentation. Project documentation (Option B) is a primary source of risk identification because it contains the project scope, schedule, requirements, and assumptions that directly reveal potential risks such as resource constraints or scope creep. Lessons learned from previous projects (Option E) provide empirical data on actual risks encountered, mitigation effectiveness, and failure patterns, making them a critical input for identifying risks in new IT projects. Both sources are explicitly cited in the CRISC Review Manual as foundational inputs for the risk identification process.

Answer

Security baseline

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Risk treatment plan

Answer

Firewall logs

Question 13

You are the IT risk manager for a mid-sized e-commerce company. The company processes credit card payments and stores customer data. Recently, the company experienced a security incident where an attacker exploited a SQL injection vulnerability in the web application, exfiltrating a database of customer records. The vulnerability was introduced three months ago during a feature upgrade. The development team claims they followed secure coding guidelines, but the vulnerability was missed due to insufficient testing. The company's risk appetite is moderate, and they have a risk management policy that requires risks to be treated within 30 days of identification. The CISO wants to know the most effective way to reduce the likelihood of similar incidents. You have assessed that the current risk score for web application vulnerabilities is 16 (High). The company has a bug bounty program, but it has not been effective. Which of the following courses of action would BEST address the root cause and reduce the risk?

Accepted Answer

Implement a secure software development lifecycle (SSDLC) with mandatory security training, code reviews, and automated security testing.. Option D is correct because the root cause of the incident is a failure in the development process: secure coding guidelines were followed but insufficient testing allowed a SQL injection vulnerability to be introduced. Implementing a Secure Software Development Lifecycle (SSDLC) with mandatory security training, code reviews, and automated security testing directly addresses this root cause by embedding security controls into every phase of development, preventing vulnerabilities from being introduced in the first place. This is the most effective way to reduce the likelihood of similar incidents, as it proactively fixes the process rather than relying on reactive measures.

Answer

Increase the frequency of vulnerability scanning and patch management.

Answer

Deploy a web application firewall (WAF) to block SQL injection attempts.

Answer

Increase the reward amounts in the bug bounty program to attract more researchers.

Question 14

You are a risk analyst for a financial institution that uses a legacy mainframe system for core banking transactions. The mainframe is critical for daily operations, but it is no longer supported by the vendor. The system has known vulnerabilities that cannot be patched due to compatibility issues. The institution has a risk appetite that is very low for any disruption to core banking services. Recently, there was a minor outage caused by a hardware failure, which was resolved quickly, but it highlighted the system's fragility. The IT director proposes to migrate to a modern system, but the migration will take 2 years and cost $5 million. The board is concerned about the cost and timeline. You need to recommend an immediate risk treatment to reduce the likelihood of a major outage while the migration is underway. Which of the following is the BEST course of action?

Accepted Answer

Implement redundant hardware for critical components and conduct regular failover testing.. Option B is correct because implementing redundant hardware for critical components and conducting regular failover testing directly reduces the likelihood of a major outage by addressing the single point of failure exposed by the recent hardware failure. This is an immediate risk treatment that does not depend on the 2-year migration timeline, and it aligns with the institution's very low risk appetite for core banking disruption.

Answer

Accept the risk because the migration plan is in place.

Answer

Negotiate with the vendor for extended support.

Answer

Purchase business interruption insurance to cover potential losses.

Question 15

A retail company recently deployed a point-of-sale (POS) system that processes credit card transactions. The system is connected to the corporate network and transmits transaction data to a payment processor over the internet. During a risk assessment, the IT risk manager identifies that the POS system is vulnerable to malware injection via unvalidated input from barcode scanners. Which of the following is the MOST appropriate risk mitigation strategy?

Accepted Answer

Deploy application-layer input validation and sanitization for barcode scanner inputs.. Option D is the most appropriate risk mitigation strategy because the vulnerability is specifically malware injection via unvalidated input from barcode scanners. Application-layer input validation and sanitization directly addresses the root cause by ensuring that only expected, safe data is processed by the POS system, preventing injection attacks at the point of entry.

Answer

Encrypt all transaction data in transit using TLS 1.2.

Answer

Install a next-generation firewall at the internet boundary.

Answer

Implement network segmentation to isolate the POS system from the corporate network.

Question 16

A multinational corporation is expanding its cloud infrastructure to include a new SaaS application that stores sensitive customer data. The vendor claims compliance with SOC 2 Type II and ISO 27001. The risk manager must determine if the remaining residual risk after vendor controls is within the company's risk appetite. Which of the following is the MOST critical next step?

Accepted Answer

Conduct a data classification and legal review to identify applicable regulatory obligations.. Option B is correct because understanding the data classification and regulatory requirements determines if additional controls are needed beyond the vendor's certifications. Option A is wrong because certifications alone do not guarantee all risks are addressed. Option C is wrong because the vendor's own risk assessment may not consider the company's specific requirements. Option D is wrong because a pilot does not assess regulatory compliance.

Answer

Request the vendor's latest risk assessment report.

Answer

Perform a pilot deployment and monitor for security incidents.

Answer

Accept the vendor's certifications as sufficient evidence of control effectiveness.

Question 17

An organization is implementing a new identity and access management (IAM) system. The risk manager is tasked with identifying risks associated with the migration from legacy authentication to single sign-on (SSO). Which of the following is the GREATEST risk during this migration?

Accepted Answer

Legacy authentication accounts may remain active, creating orphan accounts.. Option D is correct because legacy accounts that are not disabled after migration become unmanaged orphan accounts, posing a significant security risk. Option A is wrong because increased user convenience is a benefit, not a risk. Option B is wrong while password reuse is a risk, it is less severe than orphan accounts. Option C is wrong because SSO typically reduces help desk calls for password resets.

Answer

Users may reuse strong passwords across multiple systems.

Answer

Users may experience increased convenience, leading to reduced security awareness.

Answer

Help desk call volumes may increase due to SSO authentication failures.

Question 18

A financial institution uses a third-party cloud service for data analytics. The service has access to non-public personal information (NPI). During a risk assessment, the risk manager discovers that the cloud provider uses subprocessors without notifying the institution. The contract does not require notification of subprocessor changes. What should the risk manager do FIRST?

Accepted Answer

Notify the vendor of the contract breach and request a list of all subprocessors and their compliance certifications.. Option A is correct because immediate termination may disrupt operations; the first step should be to notify the vendor of the breach and request a list of subprocessors to assess risk. Option B is wrong because immediately terminating the contract could cause significant business disruption. Option C is wrong because the risk manager should first gather information. Option D is wrong because accepting risk without understanding the subprocessors' controls is not prudent.

Answer

Report the incident to the data protection authority as a breach of contract.

Answer

Accept the risk since the vendor remains SOC 2 Type II certified.

Answer

Terminate the contract immediately to mitigate the risk of unauthorized data access.

Question 19

A healthcare organization is migrating its electronic health records (EHR) system to a public cloud. The risk manager identifies several risks. Which TWO of the following are the MOST significant risks related to data privacy and regulatory compliance?

Accepted Answer

Data residency and jurisdiction issues.. Data residency and jurisdiction issues (B) are a top risk because healthcare data is subject to strict regulations like HIPAA and GDPR, which may require data to remain within specific geographic boundaries. Migrating EHRs to a public cloud can inadvertently place data in regions with different legal protections, exposing the organization to non-compliance and legal penalties.

Answer

Potential for service downtime affecting patient care.

Answer

Loss of control over the cloud provider's internal access controls.

Answer

Vendor lock-in due to proprietary APIs.

Question 20

You are the IT risk manager for a mid-sized e-commerce company that processes over 10,000 transactions per day. The company recently migrated its customer database from an on-premises SQL Server to a cloud-based PostgreSQL instance on AWS RDS. The database contains personally identifiable information (PII) including names, addresses, and credit card numbers (stored as encrypted tokens). The migration was performed by the DevOps team with minimal involvement from the security team. Two weeks after the migration, the company experienced a data breach where an attacker exfiltrated a subset of customer records. The forensic investigation revealed that the attacker exploited a misconfigured security group that allowed inbound traffic from the internet on port 5432 (PostgreSQL default port). Additionally, the database had a publicly accessible endpoint, and the master user password was weak (eight characters, no special characters). The attacker used a brute-force attack to guess the password. The security group has since been corrected, and the password has been changed to a strong one. The breach notification laws require reporting within 72 hours. The CEO wants to understand the root cause and prevent recurrence. As the risk manager, which of the following actions should you recommend as the MOST effective to prevent a similar incident?

Accepted Answer

Implement infrastructure-as-code (IaC) security scanning and policy enforcement in the CI/CD pipeline to prevent insecure configurations.. Option C is correct because the root cause is the misconfigured security group and weak password, both of which stem from insufficient security review and lack of automated controls. Implementing a policy-as-code tool that enforces security group rules (e.g., no public access to databases) and password policies during deployment would prevent such misconfigurations. Option A is wrong because while a dedicated DBA could help, it does not address the process gap for automated enforcement. Option B is wrong because quarterly reviews are too infrequent to catch misconfigurations quickly. Option D is wrong because IDS/IPS detects attacks but does not prevent misconfigurations.

Answer

Deploy an intrusion detection system (IDS) to monitor database traffic for brute-force attempts.

Answer

Hire a dedicated database administrator to review all database configurations weekly.

Answer

Conduct quarterly security audits of cloud infrastructure configurations.

CRISC IT Risk Identification — All Questions With Answers

An organization is considering migrating its customer database to a public cloud provider. Which of the following is the PRIMARY risk identification technique that should be used to identify potential data exposure risks?

Which of the following is the BEST example of a key risk indicator (KRI) for the risk of unauthorized access to sensitive data?

A large retailer is implementing a new point-of-sale (POS) system. The project manager wants to identify risks related to payment card data security. Which risk identification technique would be MOST effective for this purpose?

Which of the following is the PRIMARY purpose of a risk register?

Which TWO of the following are key risk identification techniques used to identify threats and vulnerabilities in IT systems? (Select exactly 2.)

Which THREE of the following are valid risk identification methods according to ISACA's Risk IT Framework? (Select exactly 3.)

Which TWO of the following are primary sources of risk identification for IT projects? (Select exactly 2.)

An organization is implementing a new identity and access management (IAM) system. The risk manager is tasked with identifying risks associated with the migration from legacy authentication to single sign-on (SSO). Which of the following is the GREATEST risk during this migration?

A healthcare organization is migrating its electronic health records (EHR) system to a public cloud. The risk manager identifies several risks. Which TWO of the following are the MOST significant risks related to data privacy and regulatory compliance?

A retail company uses a legacy inventory system that is no longer supported by the vendor. The IT department is planning to migrate to a modern cloud-based system. During risk identification, which of the following should be considered a PRIMARY risk?

A hospital uses a patient portal that allows patients to access their medical records. The portal has experienced multiple brute-force login attempts. The risk manager wants to identify the most critical risk scenario. Which of the following should be prioritized?

A technology startup is developing a mobile payment application. During a risk identification workshop, the team identifies a risk that the application may not comply with Payment Card Industry Data Security Standard (PCI DSS) requirements. What is the BEST way to categorize this risk?

A manufacturing company uses an industrial control system (ICS) that is connected to the corporate network for monitoring. The risk manager is identifying risks related to this connectivity. Which of the following is the MOST significant risk?

Arrange the steps for performing a risk assessment in the correct order.

Order the steps for incident response handling.

Sequence the steps for developing a disaster recovery plan (DRP).

Match each CRISC domain to its description.

Match each control type to its example.

Match each compliance framework to its primary focus.

A company is migrating its customer database to a public cloud provider. During the planning phase, which of the following is the MOST effective approach to identify risks specific to this migration?

During a merger and acquisition (M&A) due diligence, the acquiring company's IT risk manager is tasked with identifying risks in the target's IT environment. Which of the following would be the MOST effective technique to uncover hidden risks?

A software development team is adopting Agile methodology and wants to integrate risk identification into their sprints. Which approach BEST aligns with Agile principles while ensuring effective risk identification?

An organization uses a third-party SaaS provider for payroll processing. Which of the following is the BEST technique to identify risks associated with this vendor?

An internal audit report identifies that the IT department did not patch a critical vulnerability in a database server for 90 days. The risk manager wants to identify the root cause risk. Which approach should be used?

A financial institution is implementing a new real-time payment system that will process high-value transactions. To identify emerging risks, which method would be MOST effective during the development phase?

An IT risk manager is facilitating a workshop to identify risks for a new mobile banking application. Which technique is MOST appropriate for generating a comprehensive list of risks?

A business continuity manager wants to identify risks that could disrupt critical business processes. Which source of information would be MOST valuable for identifying such risks?

A security operations center (SOC) analyst notices multiple failed login attempts from an internal IP address followed by a successful login from an unusual geographic location. Which risk identification technique should the risk manager use to assess this as a potential risk?

Which TWO of the following are recognized techniques for identifying IT risks? (Select exactly 2.)

Which THREE of the following are essential components of a risk register that should be documented during risk identification? (Select exactly 3.)

A SIEM generates alerts for the following events. Which TWO events should be considered potential emerging risks? (Select exactly 2.)

Based on the exhibit, which of the following risks is MOST indicated by the policy configuration?

Exhibit

Based on the exhibit, what risk is indicated by the IAM policy?

Exhibit

Based on the exhibit, what risk does this database error MOST directly indicate?

Exhibit

A company is identifying risks associated with a new cloud-based CRM. Which of the following is the MOST effective method for identifying potential threats?

An organization wants to identify risks related to third-party vendors. Which approach best supports continuous risk identification?

During a risk identification workshop, the team identifies a potential data leakage from a legacy system. What is the FIRST step the risk owner should take?

Which risk identification technique relies on analyzing past incidents to predict future risks?

A retail company is identifying risks in its supply chain. Which approach is most effective for identifying previously unknown risks?

A company is conducting a Risk Identification for a new payment processing system. The team discovers that the system does not have encryption at rest. This is an example of:

Which of the following is the PRIMARY purpose of a risk register in the risk identification phase?

An organization is using the OCTAVE method for risk identification. Which activity is typically performed FIRST?

A multinational corporation is identifying risks associated with cross-border data transfers. Which regulation's risk identification requirements are most relevant?

Refer to the exhibit. What is the MOST immediate risk identification action?

Exhibit

Refer to the exhibit. What is the PRIMARY risk identified from this policy?

Exhibit

Refer to the exhibit. Which risk is MOST directly identified?

Exhibit

Which TWO are primary objectives of IT risk identification?

Which THREE of the following are effective techniques for identifying IT risks?

Which TWO risk identification techniques are most appropriate for identifying emerging risks from new technologies?

A company is migrating its legacy on-premises applications to a public cloud environment. Which risk identification technique is most appropriate for this scenario?

A SOC analyst observes repeated failed login attempts from an external IP address targeting a user account. What is the best next step in the IT risk identification process?

A company uses a third-party SaaS application for payroll processing. What is the most important activity to identify IT risks associated with this service?

A new web application is being developed using several open-source libraries. Which risk identification method is most effective for identifying vulnerabilities in these libraries?

A company plans to deploy an AI-based customer service chatbot that processes personal data. What risk should be identified as the highest priority?

During a merger and acquisition (M&A) due diligence, the IT risk manager needs to identify risks in the target company's IT environment. Which approach is most effective for comprehensive risk identification?

A company operates a legacy system for which the vendor no longer provides security patches. What is the most critical risk to identify regarding this system?

After a data breach has been contained, what is the most important action for identifying underlying IT risks?

A company uses a DevOps approach with a continuous integration/continuous deployment (CI/CD) pipeline. Which risk identification technique is best suited for detecting code vulnerabilities early in the development lifecycle?

Which TWO of the following are primary sources of IT risk identification? (Select exactly TWO.)

Which THREE of the following are effective risk identification techniques for a cloud migration project? (Select exactly THREE.)

Which THREE of the following are indicators of potential IT risk in an organization? (Select exactly THREE.)

Refer to the exhibit. What risk is most directly indicated by this log entry?

Exhibit

Refer to the exhibit. What risk is introduced by this IAM policy?

Exhibit

Refer to the exhibit. What is the most likely risk indicated by this error log?

Exhibit

A company has implemented a new cloud-based customer relationship management (CRM) system. The IT risk manager is tasked with identifying risks related to this system. Which of the following is the MOST important risk identification technique to use initially?

During a risk assessment for a new financial application, the risk manager identifies that the application processes sensitive customer data and is accessible from the internet. Which of the following is the MOST appropriate risk scenario to document?

A risk manager is identifying risks for a new mobile payment application. The application will use end-to-end encryption. Which of the following is the BEST source of risk information for identifying potential threats?

A risk manager is reviewing the risk register and notices that several risks have been identified as 'high' but no risk owner has been assigned. Which of the following is the MOST appropriate action to ensure proper risk identification going forward?

An organization is implementing a new data loss prevention (DLP) solution. The risk manager is identifying potential risks related to the DLP solution itself. Which of the following is a risk that should be considered?

A risk manager is identifying risks for an organization that uses a hybrid cloud environment. The organization stores sensitive data on-premises and in the cloud. Which of the following is the MOST effective method for identifying risks related to data residency and compliance?