Assessing the Organization's Level of Exposure in the Affected Country

C.

The new regulation in the affected country has prohibited cross-border transfer of personal data, which can pose a significant challenge to a global organization. To determine the organization's level of exposure in the affected country, an IS auditor can undertake several activities, including identifying data security threats, reviewing data classification procedures, identifying business processes associated with personal data exchange, and developing an inventory of all business entities that exchange personal data with the affected jurisdiction.

Option A - Identifying data security threats in the affected jurisdiction This option involves identifying security threats that are specific to the affected country. While this activity is necessary, it may not be sufficient to assess the organization's level of exposure. Data security threats can arise from both internal and external sources, and it may be challenging to isolate threats that are only relevant to the affected jurisdiction.

Option B - Reviewing data classification procedures associated with the affected jurisdiction Data classification procedures are critical to ensuring that personal data is appropriately protected. Reviewing these procedures can help identify gaps in the organization's data protection measures. However, this option does not provide a comprehensive assessment of the organization's level of exposure.

Option C - Identifying business processes associated with personal data exchange with the affected jurisdiction This option involves identifying business processes that involve the exchange of personal data with the affected jurisdiction. It is an important activity as it provides insight into the organization's exposure to the new regulation. By identifying these processes, the IS auditor can assess the potential impact of the new regulation on the organization's operations.

Option D - Developing an inventory of all business entities that exchange personal data with the affected jurisdiction This option involves creating a list of all business entities that exchange personal data with the affected jurisdiction. This option is the most helpful in assessing the organization's level of exposure to the new regulation as it provides a comprehensive overview of all the organization's operations that are impacted. The IS auditor can use this list to identify critical business processes and prioritize the organization's compliance efforts.

In conclusion, Option D is the most helpful in making an assessment of the organization's level of exposure to the new regulation. However, the IS auditor may need to undertake additional activities such as reviewing data classification procedures and identifying data security threats to provide a comprehensive assessment.