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ACCA Applied Knowledge · Business and Technology · Technological factors

Which of the following is a risk that arises specifically because a company stores its customer data with a third-party cloud service provider?

The specific risk is reduced direct control over where and how the data is stored and secured. The company relies on the provider's security and contract terms, yet remains responsible for protecting customer data. Cloud storage does not prevent reporting or require more data entry staff.

  1. AThe company cannot produce any management reports
  2. BReduced direct control over where and how the data is securedCorrect
  3. CThe company must employ more data entry staff

Explanation

Outsourcing storage means the provider controls infrastructure and security arrangements, so the company has less direct control and relies on contractual assurances. Cloud use does not prevent reporting nor generally increase data entry needs.

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