A company has recently been subject to a compliance review and was found to have multiple violations regarding the storage of sensitive customer data. Which of the following consequences would most likely be applicable to this situation?
Mandatory public disclosure of all stored customer data on the company website
Automated appointment of an external organization to oversee future data storage practices
Immediate and permanent revocation of the company's operating license
Fines are a common consequence for non-compliance with laws and regulations, particularly when it involves the mishandling of sensitive customer data. Such violations can lead to substantial monetary penalties imposed by regulatory authorities. Loss of license is typically associated with more severe infractions, often related to professional or operational licenses rather than data management practices. While reputational damage and the appointment of an external overseeing body might occur, these are secondary consequences that do not directly result from the imposition by a regulatory authority but rather from the reactions of customers and the industry to the non-compliance.
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What are regulatory authorities and what role do they play in enforcing compliance?
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What types of monetary fines can a company face for data violations?
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What are some potential secondary consequences a company might face after a violation?