The Chief Executive Officer (CEO) of a large prestigious enterprise has decided to reduce
business costs by outsourcing to a third party company in another country. Functions to be
outsourced include: business analysts, testing, software development and back office functions
that deal with the processing of customer data. The Chief Risk Officer (CRO) is concerned about
the outsourcing plans. Which of the following risks are MOST likely to occur if adequate controls
are not implemented?
A.
Geographical regulation issues, loss of intellectual property and interoperability agreement
issues
B.
Improper handling of client data, interoperability agreement issues and regulatory issues
C.
Cultural differences, increased cost of doing business and divestiture issues
D.
Improper handling of customer data, loss of intellectual property and reputation damage