A multinational company stores customer records in a cloud data center located in Germany. The security team must ensure that the data is handled according to German privacy regulations rather than solely following corporate policies written in the United States. Which legal concept dictates that the stored data is subject to German law?
Data sovereignty is correct because it specifically refers to the notion that data is subject to the legal requirements and regulations of the country in which it physically resides. Compliance with data sovereignty is critical when operating in multiple jurisdictions, as failure to adhere to local data laws can result in significant legal and financial penalties.
Ask Bash
Bash is our AI bot, trained to help you pass your exam. AI Generated Content may display inaccurate information, always double-check anything important.
What are some examples of data sovereignty laws in different countries?
Open an interactive chat with Bash
How does data sovereignty differ from data residency?
Open an interactive chat with Bash
What challenges do organizations face when complying with data sovereignty?