What do compliance violations refer to in cloud computing risks?

Prepare for the Information Systems and Controls (ISC) CPA Exam. Study with flashcards and multiple-choice questions, each with hints and explanations. Get ready to excel!

Compliance violations in cloud computing risks primarily refer to the breach of governmental regulations. This violation occurs when a company fails to adhere to specific laws and regulatory frameworks that are designed to govern how data is managed, stored, and processed in cloud environments. Such regulations may include data protection laws, privacy regulations, and industry-specific guidelines that dictate how organizations should handle sensitive information.

Breach of governmental regulations can lead to severe consequences, including legal penalties, financial fines, and reputational damage. Organizations must ensure compliance with applicable laws to protect not only their interests but also the rights and privacy of their customers. By emphasizing compliance with regulations, organizations can mitigate the risks associated with cloud computing and safeguard their operations from potential legal ramifications.

The other choices focus on best practices, resource management, and data encryption, which, while important in cloud computing, do not specifically address the legal and regulatory framework that defines compliance violations.

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