Cybersecurity policies are the high-level statements that define the organization's objectives, principles, and expectations for protecting its information assets from cyber threats. Cybersecurity policies provide the foundation for developing and implementing cybersecurity strategies, plans, procedures, standards, and guidelines. However, cybersecurity policies alone are not enough to ensure effective cybersecurity. The organization also needs to allocate sufficient budget resources to support the implementation and maintenance of cybersecurity controls, such as hardware, software, personnel, training, testing, auditing, and incident response. Sufficient cyber budget allocation demonstrates the organization's commitment to cybersecurity and enables it to achieve its cybersecurity goals. References: https://www.isaca.org/credentialing/cism
https://www.wiley.com/en-us/CISM+Certified+Information+Security+Manager+Study+Guide-p-
9781119801948

Regulatory compliance is the most important objective when implementing a security policy for an organization handling personally identifiable information (PII) because it helps to ensure that the organization meets the legal and ethical obligations to protect the privacy and security of PII. PII is any information that can be used to identify, contact, or locate an individual, such as name, address, email, phone number, social security number, etc. PII is subject to various laws and regulations in different jurisdictions, such as the General Data Protection Regulation (GDPR) in the European Union, the California Consumer Privacy Act (CCPA) in the United States, or the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada. Failing to comply with these regulations can result in fines, lawsuits, reputational damage, or loss of trust. Therefore, regulatory compliance is the correct answer.
Reference:
https://www.iso.org/obp/ui/en/#iso:std:iso-iec:27018:ed-2:v1:en
https://www.digitalguardian.com/blog/how-secure-personally-identifiable-information-against-loss-or-compromise
https://blog.rsisecurity.com/how-to-make-a-personally-identifiable-information-policy/