Business Intelligence Exam Practice 2026 – Complete Prep Guide

Question: 1 / 400

Why is data security critical in BI?

To encourage data sharing among competitors

To protect sensitive information and ensure compliance

Data security is critical in Business Intelligence because it plays a fundamental role in protecting sensitive information and ensuring compliance with regulations. In an era where data breaches are increasingly common, organizations must prioritize safeguarding their data to maintain trust with customers and stakeholders. This involves implementing measures to secure personal, financial, and proprietary business information against unauthorized access and potential exploitation.

Moreover, compliance with data protection regulations, such as GDPR or HIPAA, is essential for avoiding legal penalties and maintaining a good reputation in the marketplace. By effectively managing data security, organizations can not only protect their assets but also harness the full potential of their business intelligence initiatives, making data-driven decisions without the fear of exposing sensitive information.

In contrast, promoting data sharing among competitors would not align with the goals of security, as it could lead to risks and compromises of sensitive data. Increasing data redundancy is not a primary focus of data security; instead, it can complicate data management and increase costs. While reducing IT costs is a beneficial goal, it should not come at the expense of compromising data security, which is essential for long-term success and sustainability in any organization.

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To increase data redundancy

To reduce IT costs

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