CAF-7 · Chapter 3 · Question 11 of 15
A local bank is forced to alter its customer data storage protocols after the government passes a strict new Data Protection Act, which threatens severe financial penalties for unauthorized data leaks. This is an example of a firm reacting to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Legal factors
Explanation
The passing of a Data Protection Act establishes new statutory requirements for businesses. Adapting data protocols to avoid financial penalties is a direct reaction to the Legal environment.
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