The Chief Executive Officer (CEO) of a large prestigious enterprise has decided to reduce business costs by outsourcing to a third party company in another
country. Functions to be outsourced include: business analysts, testing, software development and back office functions that deal with the processing of customer
data. The Chief Risk Officer (CRO) is concerned about the outsourcing plans. Which of the following risks are MOST likely to occur if adequate controls are not
implemented?

A.
Geographical regulation issues, loss of intellectual property and interoperability agreement issues

B.
Improper handling of client data, interoperability agreement issues and regulatory issues

C.
Cultural differences, increased cost of doing business and divestiture issues

D.
Improper handling of customer data, loss of intellectual property and reputation damage