Certified Supply Chain Professional (CSCP) Practice Exam

What is a primary cost associated with e-business related to information security?

1. Global localization

2. Increased outbound transport costs

3. Reliance on outside suppliers

4. What information will be shared

The correct answer is: What information will be shared

In the context of e-business, a primary cost associated with information security revolves around the consideration of what information will be shared. Organizations must carefully manage and protect sensitive data, making it paramount to establish protocols regarding data sharing. This entails investing in security measures to prevent unauthorized access, data breaches, and ensuring compliance with privacy regulations. The costs linked to these proactive measures can be significant, as they involve implementing robust technology solutions, conducting regular security audits, employee training, and possibly the legal implications of data sharing decisions. In contrast, the other options focus on different aspects of e-business. Global localization pertains to adapting content to different languages and cultures, which does not directly tie into the information security costs. Increased outbound transport costs relate to logistics and distribution expenses rather than safeguarding data. Reliance on outside suppliers addresses supply chain vulnerabilities but does not inherently focus on the information security implications of data sharing, which is crucial in the digital realm. Thus, the emphasis on determining what information will be shared highlights the central concern of effectively managing information security costs in e-business.