A cloud service provider is used to perform analytics on an organization’s sensitive data. A data

leakage incident occurs in the service provider’s network. From a regulatory perspective, the

organization is responsible for the data breach. This is because the organization is the data owner

and has the ultimate accountability and liability for the security and privacy of its data, regardless of

where it is stored or processed. The organization cannot transfer or delegate its responsibility to the

service provider, even if there is a contractual agreement or service level agreement that specifies

the security obligations of the service provider. The other options are not correct, because they

either imply that the service provider is responsible (A), or that the responsibility depends on the

nature of breach (B) or specific regulatory requirements C, which are not relevant factors.