WGU Updated Managing-Cloud-Security Exam Questions and Answers by veer

By analyzing natural events that could impact data centers and assessing the risks associated with each, the leadership team isdefining the disaster criteria. This step determines what conditions or events qualify as disasters requiring activation of the recovery plan.

An asset inventory identifies systems, but here the focus is on external events. A disaster declaration process occurs during an actual event, and identifying actions comes later when response strategies are created.

Defining disaster criteria is essential to avoid ambiguity during crises. It establishes thresholds such as “category 4 hurricanes,” “regional power outages exceeding 12 hours,” or “seismic events over a set magnitude.” Clear criteria ensure consistent decision-making and timely activation of recovery procedures.

The correct contractual safeguard is anescrow agreement. Data escrow involves storing critical data or software with a neutral third party, which can release it to the customer if the provider fails to meet obligations, such as bankruptcy or service discontinuation.

Indemnification covers liability, offboarding manages termination processes, and encryption secures data but does not ensure availability if the provider disappears.

Escrow provisions protect business continuity by guaranteeing customer access to data regardless of provider viability. They are especially important for organizations handling mission-critical workloads or long-term regulatory obligations in the cloud.

TheSarbanes-Oxley (SOX) Act of 2002was enacted to restore investor confidence after major corporate accounting scandals. It requires publicly traded corporations to maintain accurate financial reporting and implement internal controls to safeguard the integrity of disclosed information.

GLBA focuses on protecting consumer financial data, GDPR is a European regulation governing privacy, and the CLOUD Act addresses cross-border law enforcement access to data. Only SOX directly mandates financial disclosure and corporate accountability.

SOX compliance includes maintaining audit trails, securing data integrity, and ensuring that executives certify financial statements. Failure to comply carries severe penalties, both civil and criminal. For cloud environments, SOX compliance extends to ensuring IT systems used for financial data are secure, monitored, and auditable.

Multifactor Authentication (MFA)is a commonly mandated control for obtaining cybersecurity insurance. MFA requires users to present at least two independent factors—something they know (password), something they have (token), or something they are (biometrics). This significantly reduces the risk of unauthorized access due to stolen or weak credentials.

Network segmentation and application whitelisting are valuable, but they are not universal insurance requirements. TPM is a hardware component for securing local devices but does not protect remote access in distributed work models.

By enforcing MFA across VPNs, cloud services, email, and administrative interfaces, organizations demonstrate strong access control measures. Insurance providers recognize MFA as a foundational safeguard, reducing claims risk from credential-based breaches. This makes MFA both a compliance requirement and a best practice.