Exceeding Regulatory Framework Standards: Incentives for Corporations

Why Corporations Choose to Exceed Regulatory Framework Standards

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Question

Corporations choose to exceed regulatory framework standards because of which of the following incentives?

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A. B. C. D.

A.

Corporations may choose to exceed regulatory framework standards for several reasons, including improving legal defensibility, demonstrating social responsibility, proving seriousness to investors, and raising overall industrial security standards.

A. It improves the legal defensibility of the company: By exceeding regulatory framework standards, a company can demonstrate that it takes security seriously and has taken reasonable steps to protect its assets, which can improve its legal defensibility in the event of a security breach or legal action.

B. It gives a social defense that the company is not violating customer privacy laws: Exceeding regulatory framework standards can also demonstrate that a company is committed to protecting customer privacy and can provide a social defense against accusations of violating privacy laws.

C. It proves to investors that the company takes APT cyber actors seriously: Exceeding regulatory framework standards can also demonstrate to investors that a company takes the threat of advanced persistent threats (APTs) seriously and is committed to protecting its assets.

D. It results in overall industrial security standards being raised voluntarily: By exceeding regulatory framework standards, a company can set an example for others in the industry and encourage them to follow suit, raising overall security standards in the industry.

Overall, corporations may choose to exceed regulatory framework standards for a variety of reasons, including legal defensibility, social responsibility, investor confidence, and industry leadership.