CRISC Information Technology and Security Practice Question
A financial institution is adopting a cloud-based analytics platform. The data includes sensitive customer information subject to multiple jurisdictions' data residency laws. Which of the following poses the greatest compliance risk?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Data sovereignty and cross-border data transfer restrictions
Data sovereignty issues arise when data is stored in jurisdictions with conflicting or unknown legal frameworks, posing significant compliance risk.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Multi-tenancy isolation vulnerabilities
Why it's wrong here
Isolation is a security risk but may not be the greatest compliance risk.
- ✗
Vendor lock-in due to proprietary APIs
Why it's wrong here
Vendor lock-in is a business risk, not the primary compliance risk.
- ✗
Shared responsibility model gaps
Why it's wrong here
Gaps in responsibility are important but data sovereignty is more critical for compliance.
- ✓
Data sovereignty and cross-border data transfer restrictions
Why this is correct
Data residency laws can conflict, leading to non-compliance if data is stored in an unauthorized location.
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JA
Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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