In an outsourced setup, who is primarily responsible for ensuring data security?

Prepare for the ACCA F1 Certification Exam with detailed quizzes featuring multiple choice questions and explanations. Enhance your understanding and ensure success in your exam!

The responsibility for ensuring data security in an outsourced setup primarily rests with the client organization. This is due to the fact that the client organization typically retains ownership of the data and is accountable for how that data is managed and protected. Even when data is handled by a third-party service provider, the client must implement appropriate measures to ensure that data security protocols are followed.

Client organizations usually establish contractual agreements outlining their expectations for data security, which includes compliance with relevant regulations and standards. They must also conduct due diligence in selecting an outsourcing provider, ensuring that the provider has robust security measures in place.

While the outsourcing provider has a role in maintaining security, the ultimate accountability for data protection lies with the client, as they are responsible for the data's integrity and confidentiality. This includes ongoing monitoring and evaluation of the service provider's data security practices to mitigate any risks that might arise during the outsourcing relationship.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy