ACCA Strategic Professional · Strategic Business Leader · Cloud, mobile and smart technology
Calder Health, a hospital group, is evaluating moving patient records to a multi-tenant public cloud hosted in another country. Which strategic consideration should the board treat as most critical before approving the move?
The board should prioritise compliance with data protection and residency laws, together with contracts that allocate responsibility and set exit terms. The hospital stays accountable for sensitive patient data even when hosted offshore, so legal and governance exposure outweighs hardware, brand or feature considerations.
- AWhether the provider's data centres use the newest hardware
- BCompliance with data protection and data residency laws, with clear contractual allocation of responsibility and exit termsCorrect
- CThe provider's brand recognition among consumers
- DThe number of features in the provider's marketing brochure
Explanation
Patient data is highly sensitive, and the organisation remains accountable for it even when outsourced. Legal compliance on cross-border storage, contractual responsibilities and exit and lock-in terms are the governance priorities. Hardware novelty, brand and brochures are secondary and do not address accountability.
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