Risk Management 101 for IT Professionals Essential Concepts - Legal and Regulatory Concerns

The video tutorial covers regulatory considerations in IT risk management, emphasizing the importance of compliance with laws like GDPR, HIPAA, and PCI DSS. It explains the concepts of due care, due diligence, and gross negligence, highlighting their relevance in legal liability. The tutorial stresses that ignorance of the law is not a valid excuse and underscores the need for proactive risk management to avoid legal repercussions.

Why is compliance with laws and regulations crucial in IT risk management?

• It is mandatory and ensures legal protection.

• It helps in reducing operational costs.

• It is optional and can be ignored.

• It is only necessary for large organizations.

What is the primary focus of the GDPR regulation?

• Securing payment card information

• Protecting healthcare data

• Ensuring software quality

• Safeguarding consumer personal data

Which regulation is concerned with the protection of private healthcare information?

• GDPR

• HIPAA

• SOX

• PCI DSS

What is the main purpose of PCI DSS?

• To manage IT project risks

• To secure credit card transactions

• To protect healthcare information

• To regulate data privacy in the EU

What is the consequence of not being in compliance with IT regulations?

• Higher profit margins

• Potential legal liability

• Improved employee morale

• Increased customer satisfaction

What does 'due care' refer to in IT risk management?

• Avoiding all risks

• Delegating responsibilities to others

• Implementing security controls to mitigate risks

• Ignoring potential risks

How does 'due diligence' differ from 'due care'?

• It involves managing and ensuring due care is performed.

• It is a step below due care.

• It involves ignoring risks.

• It is unrelated to risk management.