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To manage sensitive data's encryption key outside of Google Cloud, using a third-party key management provider is essential. This allows organizations to take full control over their encryption keys, ensuring that they are stored and managed according to their own security policies and compliance requirements. Third-party key management services can provide enhanced features and flexibility, including integration with various encryption algorithms, access controls, and auditing capabilities.

By opting for a third-party provider, organizations mitigate the risk associated with relying solely on the cloud provider's security measures. This can be particularly crucial for industries with stringent regulatory requirements, where independent key control is critical.

In contrast, utilizing Google’s built-in key management feature keeps the key management process within the Google Cloud ecosystem, which might not align with the goal of managing keys externally. Accessing data without encrypting it first poses security risks, especially for sensitive information, as it would leave the data vulnerable. Storing encryption keys in Cloud Storage buckets does not meet the requirement of having the keys managed outside of Google Cloud, as they would still be within the Google infrastructure, potentially exposing them to the same risks as the encrypted data.