Common Management Admission Test (CMAT) Practice Exam

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Why might big data access be restricted in some event management software?

  1. Licensing limitations

  2. Technical challenges

  3. Data privacy regulations

  4. Outdated technology

The correct answer is: Data privacy regulations

Big data access may be restricted in some event management software due to data privacy regulations. These regulations, such as the General Data Protection Regulation (GDPR) in the European Union or similar laws in various jurisdictions, impose strict guidelines on how personal data should be collected, processed, shared, and stored. Event management software often handles a wide array of personal information about attendees, such as names, contact details, and even payment information. To comply with these regulations, organizations must ensure that they have proper consent to use this data and that they implement adequate security measures to protect it. Failure to comply can lead to significant penalties, including fines and legal repercussions. Therefore, companies may limit access to big data in their systems to avoid inadvertent violations of these laws and to protect individuals' privacy rights. While licensing limitations and technical challenges can also impact the availability of data, they do not address the legal and ethical responsibilities related to personal information. Outdated technology may hinder functionality but is less directly related to the constraints imposed by regulatory frameworks focused on data privacy.