Correct Answer: AWhen there is a conflict between an organization's data-handling policy and local privacy regulations, the best approach is to request a policy exception from senior management. This ensures that the conflict is addressed with the approval and awareness of the organization's leadership, allowing for a tailored resolution that maintains compliance with local regulations. Seeking an exception from the local regulatory agency is unlikely to be practical, as regulatory requirements are generally not negotiable. Similarly, simply complying with the organizational policy might lead to legal issues, and reporting noncompliance to the local regulatory agency does not resolve the underlying conflict. Therefore, requesting a policy exception from senior management is the most practical and effective solution.