ACCA Applied Knowledge · Business and Technology · Technological factors
A company moves its customer database to a third-party cloud provider. Which risk is most directly increased by this decision?
The risk most directly increased is dependence on the provider's security and availability. The company relies on a third party to protect and provide access to its data, yet usually remains legally responsible for that data. Backups remain possible and savings are not guaranteed.
- ADependence on the provider's security and availabilityCorrect
- BInability to back up any data
- CLoss of all legal responsibility for the data
- DCertainty of lower costs in every year
Explanation
Using a cloud provider creates reliance on the provider's security measures and uptime. The company generally keeps responsibility for its data, backups remain possible, and cost savings are not guaranteed.
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