Non-compliance with data privacy regulations can result in significant fines, reputational damage, sanctions, and contractual issues for companies. Learn more about the direct consequences a CISO should present to justify additional resources.
Table of Contents
Question
The Chief Information Security Officer (CISO) has determined the company is non-compliant with local data privacy regulations. The CISO needs to justify the budget request for more resources. Which of the following should the CISO present to the board as the direct consequence of non-compliance?
A. Fines
B. Reputational damage
C. Sanctions
D. Contractual implications
Answer
The most direct consequence of non-compliance with local data privacy regulations that the Chief Information Security Officer (CISO) should present to the board to justify the budget request for more resources is:
A. Fines
Explanation
Fines are typically the most immediate and quantifiable consequence imposed by regulatory bodies when an organization fails to comply with data privacy regulations. Non-compliance can result in substantial monetary penalties, which directly impact the company’s financial standing. Presenting the potential fines as a direct consequence helps the board understand the urgent need for additional resources to address the non-compliance issues and avoid financial repercussions.
While reputational damage, sanctions, and contractual implications are also potential consequences of non-compliance, they are often more indirect, long-term, or harder to quantify compared to fines. Reputational damage can lead to loss of customer trust and business, but it is not as immediate or easily measurable. Sanctions and contractual implications may vary depending on the specific agreements and relationships the company has with other entities.
Therefore, emphasizing the direct financial impact of fines is the most effective way for the CISO to justify the budget request and convey the urgency of addressing non-compliance to the board.
CompTIA SY0-701 certification exam assessment practice question and answer (Q&A) dump including multiple choice questions (MCQ) and objective type questions, with detail explanation and reference available free, helpful to pass the CompTIA SY0-701 exam and earn CompTIA SY0-701 certification.