Question

Which of the following statements is true?

1) Management has a legal responsibility to protect an organization's informational assets.
2) Proper protection of organizational information from unauthorized use required both physical and logical controls.
3) The unauthorized disclosure of financial information is a violation of federal securities laws.
4) All of the above.

Answer 1

All statements are true; management must protect informational assets, protection requires physical and logical controls, and unauthorized disclosure of financial data breaches federal laws. Legal protections are in place but face challenges with digital threats.

Step-by-step explanation:

Among the statements provided, all are true:

1. Management has a legal responsibility to protect an organization's informational assets.
2. Proper protection of organizational information from unauthorized use required both physical and logical controls.
3. The unauthorized disclosure of financial information is a violation of federal securities laws.
4. All of the above.

Businesses, governments, and individuals have a vested interest in the protection of sensitive information. Legal frameworks such as the Fair Credit Reporting Act of 1970, the Privacy Act of 1974, and the Financial Services Modernization Act of 1999 are in place to protect personal and financial data. However, with increasing digital storage and communication, threats like identity theft and data breaches have prompted an even greater need for comprehensive security measures. The transparency and fairness of governments in handling this data are also critical to maintaining public trust and ensuring that privacy rights are upheld.