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ACCA Strategic Professional · Strategic Business Leader · Cloud, mobile and smart technology

Brightwell Hospital Group plans to move patient records to a public cloud provider based in another country. The board is worried that it may lose control over where records are held and which national laws apply to them. Which risk of cloud adoption is this concern primarily about?

The concern is data sovereignty and jurisdiction. When patient records sit in another country, that country's laws may govern access and protection, creating regulatory compliance risk for the hospital group. Lock-in, scalability and capital expenditure do not address the board's worry about legal control over data location.

  1. AVendor lock-in caused by proprietary data formats
  2. BData sovereignty and jurisdiction, affecting regulatory complianceCorrect
  3. CReduced scalability during periods of high demand
  4. DHigher up-front capital expenditure on hardware

Explanation

Holding data in another country raises questions of which legal regime governs access and protection, a data sovereignty and compliance risk. Lock-in concerns switching providers, and scalability and capex are generally cloud benefits rather than the risk described.

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