When analyzing l&T-related risk, an enterprise defines likelihood and impact on a scale from 1 to 5, and the scale of impact also defines a range expressed in monetary terms. Which of the following risk analysis approaches has been adopted?
Correct Answer: C
When an enterprise defines likelihood and impact on a scale from 1 to 5, and the scale of impact also defines a range expressed in monetary terms, a hybrid approach has been adopted. Here's why: * Qualitative Approach: This approach uses descriptive scales and subjective assessments to evaluate risk likelihood and impact. It does not typically involve monetary terms. * Quantitative Approach: This method uses numerical values and statistical models to measure risk, often involving monetary terms and precise calculations. * Hybrid Approach: This combines elements of both qualitative and quantitative approaches. By defining likelihood on a scale (qualitative) and expressing impact in monetary terms (quantitative), the enterprise is using a hybrid approach. This allows for a comprehensive assessment that leverages the strengths of both methods. Therefore, the described method represents a hybrid approach to risk analysis. References: * ISA 315 Anlage 5 and 6: Detailed guidelines on risk assessment and analysis methodologies. * ISO-27001 and GoBD standards for risk management and business impact analysis. These references provide a comprehensive understanding of the principles and methodologies involved in IT risk and audit processes.
Question 17
Which of the following is the BEST reason for an enterprise to avoid an absolute prohibition on risk?
Correct Answer: B
An absolute prohibition on risk means that an enterprise avoids any and all forms of risk, regardless of potential benefits. This approach can lead to the following issues: * Inefficiency in Resource Allocation:Absolute risk avoidance can cause an enterprise to allocate resources ineffectively. For example, by avoiding all risks, the enterprise may miss out on opportunities that could bring substantial benefits. Resources that could be invested in innovation or improvement are instead tied up in mitigating even the smallest of risks. * Stifling Innovation and Growth:Enterprises that are overly risk-averse may hinder innovation and growth. Taking calculated risks is essential for driving new initiatives, products, or services. Without accepting some level of risk, companies might lag behind competitors who are willing to innovate and take strategic risks. * Poor Risk Management Practices:By trying to avoid all risks, enterprises might develop a risk management strategy that is more about avoidance than mitigation and management. Effective risk management involves identifying, assessing, and mitigating risks, not completely avoiding them. This ensures that the company is prepared for potential challenges and can manage them proactively. References: * ISA 315 Anlage 5andAnlage 6discuss the importance of understanding and managing risks associated with IT environments. They highlight the need for a balanced approach to risk management that includes both manual and automated controls to handle various risk levels (e.g., operational, compliance, strategic). * SAP Reports and Handbookshighlight the necessity of balancing risk with operational efficiency to maintain effective resource allocation and drive business objectives forward.
Question 18
Which of the following statements on an organization's cybersecurity profile is BEST suited for presentation to management?
Correct Answer: C
Communicating Cybersecurity Profile: * When presenting the organization's cybersecurity profile to management, it is crucial to focus on the effectiveness of the security measures in place and their ability to minimize risks. Clarity and Relevance: * Statement A ("The probability of a cyber attack varies between unlikely and very likely") is too vague * and does not provide actionable information. * Statement B ("Risk management believes the likelihood of a cyber attack is not imminent") lacks specificity and does not detail the measures taken. Effectiveness of Security Measures: * Statement C highlights the proactive steps taken to configure security measures to minimize risk. This approach is more likely to instill confidence in management about the current cybersecurity posture. * According to best practices in IT risk management, as outlined in various frameworks such as NIST and ISO 27001, focusing on the effectiveness and configuration of security controls is key to managing cybersecurity risks. Conclusion: * Thus, the statement best suited for presentation to management is:Security measures are configured to minimize the risk of a cyber attack.
Question 19
Which of the following is the BEST way to minimize potential attack vectors on the enterprise network?
Correct Answer: B
The best way to minimize potential attack vectors on the enterprise network is to disable any unneeded ports. Here's why: * Implement Network Log Monitoring: This is important for detecting and responding to security incidents but does not directly minimize attack vectors. It helps in identifying attacks that have already penetrated the network. * Disable Any Unneeded Ports: By closing or disabling ports that are not needed, you reduce the number of entry points that an attacker can exploit. Open ports can be potential attack vectors for malicious activities, so minimizing the number of open ports is a direct method to reduce the attack surface. * Provide Annual Cybersecurity Awareness Training: While this is crucial for educating employees and reducing human-related security risks, it does not directly address the technical attack vectors on the network itself. Therefore, the best method to minimize potential attack vectors is to disable any unneeded ports, as this directly reduces the number of exploitable entry points.
Question 20
An enterprise that uses a two-factor authentication login method for accessing sensitive data has implemented which type of control?
Correct Answer: A
An enterprise that uses a two-factor authentication login method for accessing sensitive data has implemented a preventive control. Here's why: * Preventive Control: This type of control is designed to prevent security incidents before they occur. Two-factor authentication (2FA) enhances security by requiring two forms of verification (e.g., a password and a mobile code) to access sensitive data. This prevents unauthorized access by ensuring that even if one authentication factor (like a password) is compromised, the second factor remains a barrier to entry. * Corrective Control: These controls come into play after an incident has occurred, aiming to correct or * mitigate the impact. Examples include restoring data from backups or applying patches after a vulnerability is exploited. 2FA does not correct an incident but prevents it from happening. * Detective Control: These controls are designed to detect and alert about incidents when they happen. Examples include intrusion detection systems (IDS) and audit logs. 2FA is not about detection but about prevention. Therefore, two-factor authentication is a preventive control.
