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ACCA Applied Skills · Performance Management · Big data and data analytics

A retailer uses big data analytics to personalise offers using customers' browsing and purchase histories. Which of the following is a risk most directly linked to this use of big data?

The main risk is breaching data protection and privacy regulations. Personalising offers from individual browsing and purchase histories uses personal data, so the retailer must have consent and lawful grounds, otherwise it faces legal penalties and reputational damage.

  1. ABreach of data protection and privacy rules if personal data is used without proper consentCorrect
  2. BInability to store any data because of lack of volume
  3. CReduction in the variety of data available to the analysts
  4. DAutomatic elimination of all errors in the source data

Explanation

Using personal data for profiling raises privacy and data protection compliance risks, including consent and lawful use. The other options are not risks of big data: volume is its feature, and analytics does not remove source data errors.

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