CompTIA Security Plus 501 Practice Questions

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Question 1

A Chief Information Security Officer has decided that purchasing insurance when the ALE of expected incidents exceeds $1 million is the most cost-effective approach. Which of the following does the $1 million represent?

Your Answer: Option(s)

Correct Answer: Option(s) C

Rationale

$1 million represents the risk threshold.

The risk threshold is the point at which an organization determines that the potential losses from risks exceed a defined limit, prompting action such as purchasing insurance. In this case, the Chief Information Security Officer has established that any expected loss exceeding $1 million warrants a response through insurance procurement.

A) Risk indicator
A risk indicator serves as a metric or signal that suggests the level of risk but does not define a specific monetary limit. It helps organizations monitor risk levels but lacks the definitive threshold that mandates action. Therefore, while it may highlight potential risks, it does not represent the actionable limit of $1 million.

B) Risk tolerance
Risk tolerance refers to the degree of variability in investment returns that an organization is willing to withstand. It is more about the willingness to accept risk rather than a specific financial threshold for taking action. Thus, while risk tolerance is a crucial aspect of risk management, it does not equate to the specific $1 million threshold that prompts insurance purchases.

D) Risk exposure
Risk exposure is the extent to which an organization is susceptible to potential losses due to identified risks. It encompasses the total potential losses but does not specify a threshold for action. The $1 million figure represents a limit for action rather than the broader concept of risk exposure, which can vary significantly based on different factors.

Conclusion
In risk management, establishing a risk threshold is essential for determining when to take action against potential losses. The $1 million figure signifies the point at which the Chief Information Security Officer has decided that the costs of expected incidents necessitate a proactive approach, such as purchasing insurance. Understanding the distinction between risk threshold and other risk-related concepts ensures effective decision-making in financial risk management.

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$1 million represents the risk threshold.

Version control is the process the human resources department should follow to track revisions.

Air-gapped architecture is the best fit for ensuring network devices cannot connect to the public Internet and the local network for firmware updates.

Sanitization is a common data removal option for companies that want to wipe sensitive data from hard drives in a repeatable manner but allow the hard drives to be reused.

Internal

Free Preview Ended

Unlock Full Access

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