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QUESTION 136
Which of the following should be determined while defining risk management strategies?
A. Risk assessment criteria
B. Organizational objectives and risk appetite
C. IT architecture complexity
D. Enterprise disaster recovery plans
100-105 exam Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
While defining risk management strategies, one needs to analyze the organization's objectives and risk appetite and define a risk management framework based on this analysis. Some organizations may accept known risks, while others may invest in and apply mitigation controls to reduce risks. Risk assessment criteria would become part of this framework, but only after proper analysis. IT architecture complexity and enterprise disaster recovery plans are more directly related to assessing risks than defining strategies.
QUESTION 137
When implementing effective security governance within the requirements of the company's security strategy, which of the following is the MOST important factor to consider?
A. Preserving the confidentiality of sensitive data
B. Establishing international security standards for data sharing
C. Adhering to corporate privacy standards
D. Establishing system manager responsibility for information security
Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
The goal of information security is to protect the organization's information assets. International security standards are situational, depending upon the company and its business. Adhering to corporate privacy standards is important, but those standards must be appropriate and adequate and are not the most important factor to consider. All employees are responsible for information security, but it is not the most important factor to consider.
QUESTION 138
Which of the following is the BEST reason to perform a business impact analysis (BIA)?
A. To help determine the current state of risk
B. To budget appropriately for needed controls
C. To satisfy regulatory requirements
D. To analyze the effect on the business
100-105 dumps Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
The BIA is included as part of the process to determine the current state of risk and helps determine the acceptable levels of response from impacts and the current level of response, leading to a gap analysis. Budgeting appropriately may come as a result, but is not the reason to perform the analysis. Performing an analysis may satisfy regulatory requirements, bill is not the reason to perform one. Analyzing the effect on the business is part of the process, but one must also determine the needs or acceptable effect or response.
QUESTION 139
A risk mitigation report would include recommendations for:
A. assessment.
B. acceptance
C. evaluation.
D. quantification.
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
Acceptance of a risk is an alternative to be considered in the risk mitigation process. Assessment. evaluation and risk quantification are components of the risk analysis process that are completed prior to determining risk mitigation solutions.
QUESTION 140
A risk management program should reduce risk to:
A. zero.
B. an acceptable level.
C. an acceptable percent of revenue.
D. an acceptable probability of occurrence.
100-105 pdf Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
Risk should be reduced to an acceptable level based on the risk preference of the organization. Reducing risk to zero is impractical and could be cost-prohibitive. Tying risk to a percentage of revenue is inadvisable since there is no direct correlation between the two. Reducing the probability of risk occurrence may not always be possible, as in the ease of natural disasters. The focus should be on reducing the impact to an acceptable level to the organization, not reducing the probability of the risk.
QUESTION 141
The MOST important reason for conducting periodic risk assessments is because:
A. risk assessments are not always precise.
B. security risks are subject to frequent change.
C. reviewers can optimize and reduce the cost of controls.
D. it demonstrates to senior management that the security function can add value.
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
Risks are constantly changing. A previously conducted risk assessment may not include measured risks that have been introduced since the last assessment. Although an assessment can never be perfect and invariably contains some errors, this is not the most important reason for periodic reassessment. The fact that controls can be made more efficient to reduce costs is not sufficient. Finally, risk assessments should not be performed merely to justify the existence of the security function.
QUESTION 142
Which of the following BEST indicates a successful risk management practice?
A. Overall risk is quantified
B. Inherent risk is eliminated
C. Residual risk is minimized
D. Control risk is tied to business units
100-105 vce Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
A successful risk management practice minimizes the residual risk to the organization. Choice A is incorrect because the fact that overall risk has been quantified does not necessarily indicate the existence of a successful risk management practice. Choice B is incorrect since it is virtually impossible to eliminate inherent risk. Choice D is incorrect because, although the tying of control risks to business may improve accountability, this is not as desirable as minimizing residual risk.
QUESTION 143
Which of the following would generally have the GREATEST negative impact on an organization?
A. Theft of computer software
B. Interruption of utility services
C. Loss of customer confidence
D. Internal fraud resulting in monetary loss
Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
Although the theft of software, interruption of utility services and internal frauds are all significant, the loss of customer confidence is the most damaging and could cause the business to fail.
QUESTION 144
A successful information security management program should use which of the following to determine the amount of resources devoted to mitigating exposures?
A. Risk analysis results
B. Audit report findings
C. Penetration test results
D. Amount of IT budget available
100-105 exam Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
Risk analysis results are the most useful and complete source of information for determining the amount of resources to devote to mitigating exposures. Audit report findings may not address all risks and do not address annual loss frequency. Penetration test results provide only a limited view of exposures, while the IT budget is not tied to the exposures faced by the organization.
QUESTION 145
Which of the following will BEST protect an organization from internal security attacks?
A. Static IP addressing
B. Internal address translation
C. Prospective employee background checks
D. Employee awareness certification program
Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
Because past performance is a strong predictor of future performance, background checks of prospective employees best prevents attacks from originating within an organization. Static IP addressing does little to prevent an internal attack. Internal address translation using non-routable addresses is useful against external attacks but not against internal attacks. Employees who certify that they have read security policies are desirable, but this does not guarantee that the employees behave honestly.
QUESTION 146
For risk management purposes, the value of an asset should be based on:
A. original cost.
B. net cash flow.
C. net present value.
D. replacement cost.
100-105 dumps Correct Answer: D
Explanation
Explanation/Reference:
Explanation:
The value of a physical asset should be based on its replacement cost since this is the amount that would be needed to replace the asset if it were to become damaged or destroyed. Original cost may be significantly different than the current cost of replacing the asset. Net cash flow and net present value do not accurately reflect the true value of the asset.
QUESTION 147
In a business impact analysis, the value of an information system should be based on the overall cost:
A. of recovery.
B. to recreate.
C. if unavailable.
D. of emergency operations.
Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
The value of an information system should be based on the cost incurred if the system were to become unavailable. The cost to design or recreate the system is not as relevant since a business impact analysis measures the impact that would occur if an information system were to become unavailable. Similarly, the cost of emergency operations is not as relevant.
QUESTION 148
Acceptable risk is achieved when:
A. residual risk is minimized.
B. transferred risk is minimized.
C. control risk is minimized.
D. inherent risk is minimized.
100-105 pdf Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
Residual risk is the risk that remains after putting into place an effective risk management program; therefore, acceptable risk is achieved when this amount is minimized. Transferred risk is risk that has been assumed by a third party and may not necessarily be equal to the minimal form of residual risk. Control risk is the risk that controls may not prevent/detect an incident with a measure of control effectiveness. Inherent risk cannot be minimized.
QUESTION 149
The value of information assets is BEST determined by:
A. individual business managers.
B. business systems analysts.
C. information security management.
D. industry averages benchmarking.
Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
Individual business managers are in the best position to determine the value of information assets since they are most knowledgeable of the assets' impact on the business. Business systems developers and information security managers are not as knowledgeable regarding the impact on the business. Peer companies' industry averages do not necessarily provide detailed enough information nor are they as relevant to the unique aspects of the business.
QUESTION 150
During which phase of development is it MOST appropriate to begin assessing the risk of a new application system?
A. Feasibility
B. Design
C. Development
D. Testing
100-105 vce Correct Answer: A
Explanation
Explanation/Reference:
Explanation:
Risk should be addressed as early in the development of a new application system as possible. In some cases, identified risks could be mitigated through design changes. If needed changes are not identified until design has already commenced, such changes become more expensive. For this reason, beginning risk assessment during the design, development or testing phases is not the best solution.
QUESTION 151
The MOST effective way to incorporate risk management practices into existing production systems is through:
A. policy development.
B. change management.
C. awareness training.
D. regular monitoring.
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
Change is a process in which new risks can be introduced into business processes and systems. For this reason, risk management should be an integral component of the change management process. Policy development, awareness training and regular monitoring, although all worthwhile activities, are not as effective as change management.
QUESTION 152
Which of the following would be MOST useful in developing a series of recovery time objectives (RTOs)?
A. Gap analysis
B. Regression analysis
C. Risk analysis
D. Business impact analysis
100-105 exam Correct Answer: D
Explanation
Explanation/Reference:
Explanation:
Recovery time objectives (RTOs) are a primary deliverable of a business impact analysis. RTOs relate to the financial impact of a system not being available. A gap analysis is useful in addressing the differences between the current state and an ideal future state. Regression analysis is used to test changes to program modules. Risk analysis is a component of the business impact analysis.
QUESTION 153
The recovery time objective (RTO) is reached at which of the following milestones?
A. Disaster declaration
B. Recovery of the backups
C. Restoration of the system
D. Return to business as usual processing
Correct Answer: C
Explanation
Explanation/Reference:
Explanation:
The recovery time objective (RTO) is based on the amount of time required to restore a system; disaster declaration occurs at the beginning of this period. Recovery of the backups occurs shortly after the beginning of this period. Return to business as usual processing occurs significantly later than the RTO. RTO is an "objective," and full restoration may or may not coincide with the RTO. RTO can be the minimum acceptable operational level, far short of normal operations.
QUESTION 154
Which of the following results from the risk assessment process would BEST assist risk management decision making?
A. Control risk
B. Inherent risk
C. Risk exposure
D. Residual risk
100-105 dumps Correct Answer: D
Explanation
Explanation/Reference:
Explanation:
Residual risk provides management with sufficient information to decide to the level of risk that an organization is willing to accept. Control risk is the risk that a control may not succeed in preventing an undesirable event. Risk exposure is the likelihood of an undesirable event occurring. Inherent risk is an important factor to be considered during the risk assessment.
QUESTION 155
The decision on whether new risks should fall under periodic or event-driven reporting should be based on which of the following?
A. Mitigating controls
B. Visibility of impact
C. Likelihood of occurrence
D. Incident frequency
Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
Visibility of impact is the best measure since it manages risks to an organization in the timeliest manner. Likelihood of occurrence and incident frequency are not as relevant. Mitigating controls is not a determining factor on incident reporting.
QUESTION 156
Risk acceptance is a component of which of the following?
A. Assessment
B. Mitigation
C. Evaluation
D. Monitoring
100-105 pdf Correct Answer: B
Explanation
Explanation/Reference:
Explanation:
Risk acceptance is one of the alternatives to be considered in the risk mitigation process. Assessment and evaluation are components of the risk analysis process. Risk acceptance is not a component of monitoring.
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