Learn how to handle conflicts between organizational data-handling policies and local privacy regulations. Discover the best recommendation for risk practitioners in this CRISC exam question.
Table of Contents
Question
A multinational company needs to implement a new centralized security system. The risk practitioner has identified a conflict between the organization’s data-handling policy and local privacy regulations. Which of the following would be the BEST recommendation?
A. Request a policy exception from senior management.
B. Request an exception from the local regulatory agency.
C. Comply with the organizational policy.
D. Report the noncompliance to the local regulatory agency.
Answer
A. Request a policy exception from senior management.
Explanation
When faced with a conflict between an organization’s data-handling policy and local privacy regulations, it is crucial for the risk practitioner to prioritize compliance with the law. Local privacy regulations take precedence over internal organizational policies, as non-compliance can result in legal and reputational risks for the company.
Requesting an exception from the local regulatory agency (Option B) is not a viable solution, as regulatory agencies are unlikely to grant exceptions to their own rules and regulations. Complying with the organizational policy (Option C) is not the best option, as it would put the company at risk of violating local privacy laws.
Reporting the noncompliance to the local regulatory agency (Option D) is not the most appropriate initial step. Instead, the risk practitioner should first attempt to resolve the issue internally by raising the concern with senior management and proposing a policy exception.
By requesting a policy exception from senior management, the risk practitioner can:
- Highlight the potential legal and reputational risks associated with non-compliance.
- Propose a solution that allows the company to adhere to local privacy regulations while minimizing the impact on the organization’s data-handling processes.
- Demonstrate due diligence in identifying and addressing the conflict between internal policies and external regulations.
Senior management can then assess the situation and make an informed decision on whether to grant the policy exception or explore alternative solutions to ensure compliance with local privacy laws.
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