With reference to data security and customer privacy issues, a technology company in the research and development stage with no commercially marketed products is most likely to have:
A.
low risk exposure to this factor in the short run
B.
medium risk exposure to this factor in the short run
C.
high risk exposure to this factor in the short run
A technology company in the research and development stage with no commercially marketed products is most likely to have low risk exposure to data security and customer privacy issues in the short run.
Stage of Development: At the R&D stage, the company is primarily focused on developing and testing new technologies, which typically involves limited interaction with customers and minimal handling of customer data.
Data Security and Privacy Risks: Since the company is not yet commercialized, it is less exposed to risks related to data breaches or privacy violations. These risks become more significant once the company starts marketing its products and collecting customer data.
Short-Term Risk: In the short run, the primary focus is on innovation and development rather than data security and privacy, resulting in lower exposure to these risks.
CFA ESG Investing References:
The CFA Institute’s materials on risk management and ESG factors in technology companies highlight that data security and customer privacy become more critical as companies move from R&D to commercialization stages.
=================
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit