Which of the following is NOT a characteristic of Federated Identity Management?

Federated Identity Management (FIM) is designed to enable users to access resources across different organizations while maintaining their identity across various systems. One of the core characteristics of FIM is that it provides a seamless experience for users by allowing them to authenticate once and gain access to multiple systems without needing separate credentials for each.

The correct choice indicates that centralized data processing is not a characteristic of FIM. In a federated setup, the control over user identities and access rights is decentralized. Each organization maintains its own identity management system, and users can access services across services provided by multiple entities. This decentralization supports cross-organization access and enhances the user experience by allowing a single identity to be accepted across various systems.

Centralized data processing, on the other hand, implies that all identity and access management tasks are handled in one location, which contradicts the fundamental purpose of federated identity that emphasizes distributed control and interoperability between organizations. Thus, the association of centralized data processing with federated identity management is inaccurate, making it the correct choice for what does not characterize FIM.