International Compliance Challenges for Organizations | CCSP Exam Question Answer

Serious Complications with International Operations

Question

What is a serious complication an organization faces from the compliance perspective with international operations?

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A.

When operating within a global framework, a security professional runs into a multitude of jurisdictions and requirements, which often may not be clearly applicable or may be in contention with each other.

These requirements can involve the location of the users and the type of data they enter into systems, the laws governing the organization that owns the application and any regulatory requirements they may have, and finally the appropriate laws and regulations for the jurisdiction housing the IT resources and where the data is actually stored, which may be multiple jurisdictions as well.

Different certifications would not come into play as a challenge because the major IT and data center certifications are international and would apply to any cloud provider.

Different capabilities and different operational procedures would be mitigated by the organization's selection of a cloud provider and would not be a challenge if an appropriate provider was chosen, regardless of location.

When an organization operates internationally, it faces a complex compliance landscape that can pose several serious complications. One of the most significant issues is the challenge of navigating multiple jurisdictions with their unique laws, regulations, and standards. This can lead to confusion and conflicting requirements, which can be costly and time-consuming to manage.

For example, a company that operates in the European Union (EU) must comply with the General Data Protection Regulation (GDPR), which governs the collection, storage, and processing of personal data. If the same company operates in the United States, it must comply with the Health Insurance Portability and Accountability Act (HIPAA), which regulates the use and disclosure of healthcare information. These two sets of regulations have different requirements, which can be difficult to reconcile.

Another serious complication for organizations with international operations is dealing with different certifications. For example, a company that operates in Asia may need to comply with the International Organization for Standardization (ISO) 27001 certification for information security. However, if the same company operates in Europe, it may also need to comply with the European Union's (EU) General Data Protection Regulation (GDPR). These certifications have different requirements, which can be difficult to manage.

Different operational procedures are also a significant challenge. Companies must adapt to different cultural and legal environments, which can impact their operational procedures. For example, a company that operates in the Middle East may need to comply with strict dress codes, which can impact its employee policies and procedures.

Finally, different capabilities are another serious complication. Companies may face challenges in developing the necessary capabilities to comply with international regulations. For example, a company that operates in China may need to comply with strict data localization laws, which require that data is stored and processed within China. This can be challenging for companies that do not have the necessary infrastructure or expertise to manage data in China.

In conclusion, an organization with international operations faces a range of serious complications from the compliance perspective, including multiple jurisdictions, different certifications, different operational procedures, and different capabilities. These challenges require careful planning and management to ensure compliance with the various laws and regulations in each country or region where the company operates.