In the planning stage, what data-related concern might the legal department worry about after reviewing the provider SLAs and terms?

• A. Data Residency
• B. Data Encryption at Rest
• C. Data Backup Frequency
• D. Service Availability

Answer: (A)

Data residency means where the data is physically stored and processed, and which laws apply to it. In planning, after reviewing provider SLAs and terms, the legal department would focus on whether the data storage locations meet regulatory requirements and any localization rules, and whether transfers to other regions are allowed with appropriate safeguards. They assess data sovereignty concerns, privacy law compliance, and obligations around access and audits tied to the data’s location. While encryption at rest, backup frequency, and service availability are important, data residency is the primary legal concern because it determines which jurisdiction’s rules govern the data and what commitments the provider must honor regarding data location and cross-border transfers.