The general counsel's primary responsibility is to navigate the company's legal and regulatory landscape. A government ban on a vendor is a form of economic sanction. The most significant concern for the legal department is ensuring the company complies with this government mandate to avoid severe legal repercussions, such as fines, penalties, or even criminal charges. During a hardware refresh, the counsel's focus will be on the legal risks associated with using or procuring technology from a sanctioned entity, making compliance with the sanctions paramount.

B. Data sovereignty: This is a legal requirement about data location and jurisdiction, which is a different concern than a direct government ban on a specific vendor's hardware.

C. Cost of replacement: This is a financial and operational issue, primarily the concern of the Chief Financial Officer (CFO) or Chief Information Officer (CIO), not the general counsel.

D. Loss of license: While a possible outcome of the ban, the sanction itself is the root legal cause and the broader, more immediate concern for the company's chief legal officer.

1. CompTIA Security+ SY0-701 Exam Objectives

Domain 5.3: Summarize risk management processes and concepts. This domain covers "Supply chain assessment

" which includes evaluating "Geopolitical" risks. Government-imposed sanctions are a primary example of a geopolitical risk that affects the technology supply chain.

2. U.S. Department of the Treasury

Office of Foreign Assets Control (OFAC). (2021). OFAC Regulations for the Financial Community. Section: "Introduction to OFAC." This official documentation explains that OFAC administers and enforces economic and trade sanctions based on U.S. foreign policy and national security goals. Violations can result in significant civil and criminal penalties

which is a direct concern for a company's general counsel.

3. Lewis

J. A. (2021). Aligning U.S. Technology and Trade Policies. Center for Strategic and International Studies (CSIS). Page 5. This report discusses how government actions

such as placing companies on an "entity list

" function as sanctions to restrict access to technology for national security reasons

creating significant compliance challenges for businesses. This highlights the legal and regulatory nature of such bans.