ACCA Strategic Professional · Strategic Business Leader · E-business: value chain
Tessra Bank offers online account opening and loan applications. Customers have complained that the process asks for sensitive personal data, and regulators are asking how the bank protects it. Which e-business risk is most directly raised?
The most direct risk is information security and data privacy, including regulatory non-compliance. Collecting sensitive personal data online exposes Tessra Bank to breaches and to data protection rules, which is why regulators are asking about safeguards. The other options relate to reach, supplier power or data shortage, which the case does not mention.
- AInformation security and data privacy risk, including regulatory non-complianceCorrect
- BRisk of reduced market reach through geographic limits
- CRisk of excessive supplier bargaining power
- DRisk of lower customer data being available for analysis
Explanation
Collecting sensitive personal data online exposes the bank to breaches and to data protection regulation, which regulators are querying. The other options do not match the facts: online channels widen rather than limit reach, and no supplier power or shortage of customer data is described.
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