A multinational company must adhere to strict privacy laws concerning personal information of individuals from a European region. Which of the following is the BEST practice for managing data locality to ensure compliance?
Utilizing local data centers within the same region for storing and processing all related personal information
Storing backups of the personal information in international locations while processing takes place within the region
Employing robust encryption for the personal information while it is transmitted to external regions
Utilizing local data centers in the region is the best practice for managing data locality to ensure compliance with privacy laws focused on European individuals, such as GDPR. This is due to regulations that restrict the transfer of personal data outside the region unless adequate protections and legal agreements are established. While international transfers are possible with safeguards like Standard Contractual Clauses, keeping the data local is the most direct method of compliance. Storing backups internationally or simply encrypting data during transit to other regions does not, by itself, satisfy these complex legal requirements.
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What is GDPR and why does it impact data locality?
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What are Standard Contractual Clauses (SCCs) and how do they work with GDPR?
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Why is it insufficient to rely solely on encryption for GDPR compliance?