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Question 229 - CISM discussion

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Which of the following has the MOST influence on the inherent risk of an information asset?

A.
Risk tolerance
Answers
A.
Risk tolerance
B.
Net present value (NPV)
Answers
B.
Net present value (NPV)
C.
Return on investment (ROI)
Answers
C.
Return on investment (ROI)
D.
Business criticality
Answers
D.
Business criticality
Suggested answer: D

Explanation:

Inherent risk is the risk that exists before any controls are applied. It is influenced by factors such as the nature, value, sensitivity, and exposure of the information asset. Business criticality is one of the most important factors that affect the inherent risk of an information asset, as it reflects how essential the asset is for the organization's operations and objectives. The higher the business criticality, the higher the inherent risk.Risk tolerance, NPV, and ROI are not directly related to the inherent risk of an information asset, as they are more relevant for the risk assessment and risk treatment processes.Reference= CISM Review Manual, 16th Edition, page 971 Business criticality is the degree to which an asset is essential to the success of the business and the extent to which its loss or compromise could have a significant impact on the business. Business criticality is one of the main factors that help to determine the inherent risk of an asset, as assets that are more critical to the business tend to have a higher inherent risk.

asked 01/10/2024
Madhankumar Rathinakumar
35 questions
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