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ACCA Strategic Professional · Strategic Business Leader · Finance transformation

Brindle Foods plans to use customer loyalty-card data and social media data to refine pricing. The finance director is worried about regulatory and ethical exposure. Which action best reflects sound governance of the analytics initiative?

The best action is to define lawful purposes, limit data to what is needed, obtain consent where required and assign clear ownership of data and outputs. Collecting everything adds compliance risk, outsourcing does not remove accountability, and banning customer data is unnecessarily restrictive.

  1. ACollect all available data now and decide on its use later, since more data always improves decisions
  2. BDefine lawful purposes, limit data to what is needed, secure consent where required and assign clear ownership of data and model outputsCorrect
  3. COutsource all analytics to a supplier so that responsibility for data use transfers fully to it
  4. DUse only internal historic financial data, because any customer data is unsuitable for decisions

Explanation

Good governance sets lawful purposes, data minimisation, consent and accountable ownership. Indiscriminate collection creates compliance and ethical risk. Outsourcing does not transfer the company's accountability, and excluding all customer data is an overreaction that forgoes legitimate value.

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