Migrating to Cloud-Based Systems: Key Concerns for Risk Management Committee

Concerns for Risk Management Committee in Migrating to Cloud-Based Systems

Question

A multinational enterprise is planning to migrate to cloud-based systems.

Which of the following should be of MOST concern to the risk management committee?

Answers

Explanations

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A. B. C. D.

C.

As a language model, I can provide a detailed explanation for each option.

A. Resource alignment:

Resource alignment refers to the ability of the organization to match its resources, such as personnel, infrastructure, and budgets, with the requirements of the new cloud-based system. While this is an important consideration, it may not be the most significant concern for the risk management committee when migrating to cloud-based systems.

B. Security breaches:

One of the most significant concerns when migrating to cloud-based systems is the potential for security breaches. Cloud systems are susceptible to various types of attacks, such as data theft, ransomware, and denial-of-service attacks. These breaches can lead to data loss, service disruption, and reputation damage for the organization. Therefore, the risk management committee should prioritize security measures when migrating to cloud-based systems.

C. Regulatory compliance:

Another important consideration when migrating to cloud-based systems is regulatory compliance. Different countries and industries have various laws and regulations regarding data privacy and security. Organizations must ensure that they comply with all relevant regulations to avoid legal and financial penalties. Failure to comply with regulatory requirements can result in reputation damage, fines, and other legal consequences.

D. Cost considerations:

While cost considerations are essential, they may not be the most critical concern for the risk management committee. The cost of migrating to cloud-based systems can vary depending on several factors, such as the size of the organization, the type of cloud service, and the complexity of the migration. Organizations should consider the cost-benefit analysis of cloud migration, including the long-term cost savings, potential return on investment, and other financial factors.

In summary, the risk management committee should be most concerned about security breaches and regulatory compliance when migrating to cloud-based systems. While resource alignment and cost considerations are essential factors, they may not be the most significant concerns for the committee.