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Question 174 - CISM discussion

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Which of the following should be the PRIMARY basis for determining the value of assets?

A.
Cost of replacing the assets
Answers
A.
Cost of replacing the assets
B.
Business cost when assets are not available
Answers
B.
Business cost when assets are not available
C.
Original cost of the assets minus depreciation
Answers
C.
Original cost of the assets minus depreciation
D.
Total cost of ownership (TCO)
Answers
D.
Total cost of ownership (TCO)
Suggested answer: B

Explanation:

The primary basis for determining the value of assets should be the business cost when assets are not available. This is because the value of assets is not only determined by their acquisition or replacement cost, but also by their contribution to the organization's business objectives and processes. The business cost when assets are not available reflects the potential impact of losing or compromising the assets on the organization's operations, performance, reputation, and compliance. The business cost when assets are not available can be estimated by conducting a business impact analysis (BIA), which identifies the criticality, dependencies, and recovery requirements of the assets. By using the business cost when assets are not available as the primary basis for determining the value of assets, the organization can prioritize the protection and management of the assets according to their importance and risk level.Reference= CISM Review Manual 15th Edition, page 64, page 65.

asked 01/10/2024
Andrey Baturov
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