Which of the following is the MOST critical security consideration when an enterprise outsource is major part of IT department to a third party whose servers are in foreign company?
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A. B. C. D.C.
Laws and regulations of the country of origin may not be enforceable in foreign country and conversely, it is also true that laws and regulations of the foreign outsourcer may also impact the enterprise.
Hence violation of applicable laws may not be recognized or rectified due to lack of knowledge of the local laws.
Incorrect Answers: A: Security breach notification is not a problem and also time difference does not play any role in 24/7 environment.
Pagers, cellular phones, telephones, etc.
are there to communicate the notifications.
B: Outsourcing does not remove the enterprise's responsibility regarding internal requirements.
Hence monitoring the compliance with its internal security and privacy guidelines is not a problem.
D: The need for additional network intrusion detection sensors is not a major problem as it can be easily managed.
It only requires addition funding, but can be addressed.
When an enterprise outsources a major part of its IT department to a third party whose servers are in a foreign company, there are various security considerations to be taken into account. Out of the options given, the MOST critical security consideration is the following:
C. Laws and regulations of the country of origin may not be enforceable in foreign country
Explanation: The outsourcing of IT department to a third party in a foreign country involves several legal and regulatory challenges. Different countries have different laws and regulations governing the protection of sensitive information and data. The foreign company may not be required to comply with the same regulations and standards that the enterprise is subject to, which may result in the loss or mishandling of sensitive information. The enterprise may have no legal recourse if a security breach or data loss occurs, as the laws and regulations of the country of origin may not be enforceable in the foreign country.
Furthermore, there may be issues of jurisdiction, data sovereignty, and privacy laws that may not be consistent across borders. The foreign company may also be subject to different legal requirements, such as government surveillance, that may pose a security risk to the enterprise's data. Therefore, it is crucial for the enterprise to have a clear understanding of the legal and regulatory landscape in the foreign country and ensure that the third-party vendor is complying with the same standards as the enterprise.
While the other options listed are important considerations, they are not as critical as the legal and regulatory challenges posed by outsourcing to a foreign third-party vendor.
A. A security breach notification may get delayed due to time difference: Although this is a valid concern, it can be mitigated by having a clear communication plan and protocol in place for reporting security incidents, regardless of the time difference.
B. The enterprise could not be able to monitor the compliance with its internal security and privacy guidelines: This is also an important consideration, but it can be addressed by establishing clear expectations and requirements for the third-party vendor in the service level agreement (SLA), and conducting regular audits to ensure compliance.
D. Additional network intrusion detection sensors should be installed, resulting in additional cost: While this is a good security practice, it is not as critical as ensuring compliance with legal and regulatory requirements in a foreign country. The cost of installing additional sensors should be weighed against the risks associated with not complying with legal and regulatory requirements.