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ACCA Strategic Professional · Advanced Performance Management · Data science and analytics

Ostrava Telecom wants to use customer data from its mobile app to build predictive churn models that feed into its balanced scorecard. Which action best addresses the governance risk of this data-driven approach?

The best action is to apply data protection controls such as consent, purpose limitation and access restrictions. These manage legal and ethical risk while still allowing churn analytics to feed the scorecard. Excessive collection, unsafeguarded outsourcing, or dropping the customer perspective either increases risk or weakens performance management.

  1. ACollect as much personal data as possible in case it is useful later
  2. BApply data protection controls such as consent, purpose limitation and access restrictionsCorrect
  3. COutsource all data analysis without contractual safeguards to reduce cost
  4. DRemove the customer perspective from the scorecard to avoid data use

Explanation

Governance of personal data requires lawful collection and controlled use, including consent, limiting data to stated purposes and restricting access. Collecting excessive data breaches minimisation principles. Outsourcing without safeguards increases risk, and dropping the customer perspective would weaken the scorecard rather than manage the risk.

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