CRISC Risk Response and Mitigation Practice Question
A healthcare organization is required by regulation to retain patient records for seven years. The risk manager is evaluating a new cloud storage solution that offers encryption at rest but stores data in multiple jurisdictions. Which of the following is the MOST critical risk consideration when selecting this solution?
⚠ Common exam trap
The trap here is focusing on technical controls like encryption or physical security while overlooking the legal and regulatory implications of data residency, which can invalidate the entire solution.
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
✓
The legal and regulatory requirements for data residency in each jurisdiction
For a healthcare organization, regulatory compliance is paramount. Storing patient records in multiple jurisdictions can breach data residency laws, resulting in severe penalties. While encryption, physical security, and availability are relevant, they do not address the legal risk of unauthorized cross-border data storage. The risk manager must prioritize compliance with data residency requirements before other technical controls.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
The encryption algorithm used by the cloud provider
Why it's wrong here
While encryption strength is important, the scenario already states that encryption at rest is offered. The more critical risk is regulatory compliance related to data sovereignty and cross-border data transfers. Encryption alone does not address legal requirements about where data is stored, which could violate healthcare regulations and lead to penalties.
- ✗
The availability of the cloud service and its uptime guarantees
Why it's wrong here
Availability is important for operational continuity, but the scenario emphasizes regulatory retention requirements and multi-jurisdiction storage. A service-level agreement with high uptime does not mitigate the risk of legal non-compliance. Thus, availability is secondary to ensuring that data storage locations meet regulatory mandates.
- ✗
The physical security of the cloud provider's data centers
Why it's wrong here
Physical security is a standard control that cloud providers typically implement, and it is often covered by certifications like SOC 2. However, in this scenario, the primary concern is not physical theft but legal and regulatory compliance due to multi-jurisdiction storage. Physical security is less critical than ensuring data remains within approved legal boundaries.
- ✓
The legal and regulatory requirements for data residency in each jurisdiction
Why this is correct
Healthcare data is subject to strict privacy laws that may prohibit storage in certain jurisdictions or require specific safeguards for cross-border transfers. Storing data in multiple jurisdictions could violate these laws, leading to fines and reputational damage. Therefore, understanding and complying with data residency requirements is the most critical risk consideration.
Quick reference
AWS S3 Storage Class Comparison
| Storage Class | Min Duration | Retrieval | Use Case |
|---|---|---|---|
| S3 Standard | None | Immediate | Frequently accessed data |
| S3 Standard-IA | 30 days | Immediate | Infrequent access, rapid retrieval |
| S3 One Zone-IA | 30 days | Immediate | Non-critical infrequent data |
| S3 Intelligent-Tiering | None | Immediate–hours | Unknown or changing access patterns |
| S3 Glacier Instant | 90 days | Milliseconds | Archive with instant retrieval |
| S3 Glacier Flexible | 90 days | Minutes–hours | Archive, flexible retrieval |
| S3 Glacier Deep Archive | 180 days | Hours | Long-term compliance archive |
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This CRISC question is part of Courseiva's 1,062-question bank — original exam-style content with full explanations and wrong-answer analysis, never real exam questions or exam dumps. Learn why practice questions differ from exam dumps →
JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official ISACA exam blueprint
This CRISC practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CRISC exam.