A CIO has recently been made aware of a new regulatory requirement which may affect IT-enabled business activities.
Which of the following should be the CIO's FIRST step in deciding the appropriate response to the new requirement?
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A. B. C. D.B.
The FIRST step for a CIO in deciding the appropriate response to a new regulatory requirement that may affect IT-enabled business activities would be to consult with legal and risk experts to understand the requirements. Option A is the correct answer.
Here's why:
Understanding the regulatory requirements: The first step in responding to any new regulatory requirement is to understand its details and implications for the organization. The CIO needs to have a comprehensive understanding of the regulatory requirements, their scope, and the impact on the IT-enabled business activities.
Legal and risk experts: Consulting with legal and risk experts is essential because they can provide insight into the legal implications of the new regulation and help identify any potential risks associated with non-compliance. They can also offer guidance on the necessary steps the organization needs to take to meet regulatory requirements.
Adequate resources: Confirming that adequate resources are available to mitigate compliance requirements (Option B) is also essential. However, this step should come after consulting with legal and risk experts to fully understand the regulatory requirements and the potential risks associated with non-compliance. This understanding will inform the resource allocation decisions.
Board guidance: Consulting with the board for guidance on the new requirement (Option C) may be useful, but it should not be the FIRST step. The board may not have the necessary expertise to fully understand the regulatory requirements or the potential risks associated with non-compliance. Consulting with legal and risk experts can provide the CIO with the necessary knowledge to engage with the board effectively.
Revise initiatives: Revising initiatives that are active to reflect the new requirements (Option D) should come after the CIO has fully understood the regulatory requirements and consulted with legal and risk experts to identify the necessary steps to meet compliance. The CIO can then determine which initiatives need to be revised to comply with the new regulatory requirements.
In summary, consulting with legal and risk experts to understand the regulatory requirements is the FIRST step that a CIO should take in deciding the appropriate response to a new regulatory requirement that may affect IT-enabled business activities. This understanding will inform resource allocation decisions, engaging with the board, and revising existing initiatives.