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Question 36 - IT Risk Fundamentals discussion

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A business impact analysis (BIA) generates the MOST benefit when:

A.

keeping impact criteria and cost data as generic as possible.

Answers
A.

keeping impact criteria and cost data as generic as possible.

B.

measuring existing impact criteria exclusively in financial terms.

Answers
B.

measuring existing impact criteria exclusively in financial terms.

C.

using standardized frequency and impact metrics.

Answers
C.

using standardized frequency and impact metrics.

Suggested answer: C

Explanation:

A business impact analysis (BIA) generates the most benefit when using standardized frequency and impact metrics. Here's why:

Keeping Impact Criteria and Cost Data as Generic as Possible: This approach would not provide the necessary specificity and accuracy needed to understand the unique impacts on the organization. Generic data lacks the precision required for effective decision-making.

Measuring Existing Impact Criteria Exclusively in Financial Terms: While financial metrics are important, limiting the analysis to financial terms alone ignores other critical factors such as reputational impact, operational disruption, and compliance issues. A comprehensive BIA should include a variety of impact criteria.

Using Standardized Frequency and Impact Metrics: Standardization ensures consistency, comparability, and reliability of the data collected. It allows for a systematic evaluation of risks and impacts across different scenarios, facilitating better decision-making and prioritization.

Therefore, using standardized frequency and impact metrics is essential for generating the most benefit from a BIA.

asked 18/11/2024
Alexandre BOUCHER
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