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NEW QUESTION 31
An interruption in business productivity is considered as which of the following risks?

• A. Reporting risk
• B. Legal risk
• C. Operational risk
• D. Explanation:
  Operation risks encompass any potential interruption in business. Operational risks are those risk that are associated with the day-to-day operations of the enterprise. They are generally more detailed as compared to strategic risks. It is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from external events. Some sub-categories of operational risks include: Organizational or management related risks Information security risks Production, process, and productivity risks Profitability operational risks Business interruption risks Project activity risks Contract and product liability riss Incidents and crisis Illegal or malicious acts
• E. Strategic risk

Answer: C

Explanation:
is incorrect. Strategic risks have potential which breaks in obtaining strategic objectives. Since the strategic objective will shape and impact the entire organization, the risk of not meeting that objective can impose a great threat on the organization. Answer:A is incorrect. Reporting risks are those occurrences which prevent accurate and timely reporting. Answer:C is incorrect. Legal risks are dealing with those events which can deteriorate the company's legal status. Legal compliance is the process or procedure to ensure that an organization follows relevant laws, regulations and business rules. The definition of legal compliance, especially in the context of corporate legal departments, has recently been expanded to include understanding and adhering to ethical codes within entire professions, as well. Hence legal and compliance risk has the potential to deteriorate company's legal or regulatory status.

 

NEW QUESTION 32
A peer review of a risk assessment finds that a relevant threat community was not included. Mitigation of the risk will require substantial changes to a software application. Which of the following is the BEST course of action?

• A. Research the types of attacks the threat can present.
• B. Determine the impact of the missing threat.
• C. Build a business case to remediate the fix.
• D. Ask the business to make a budget request to remediate the problem.

Answer: B

Explanation:
Section: Volume D
Explanation/Reference:

 

NEW QUESTION 33
You are the risk professional of your enterprise. You have performed cost and benefit analysis of control that you have adopted. What are all the benefits of performing cost and benefit analysis of control? Each correct answer represents a complete solution. Choose three.

• A. It helps in providing a monetary impact view of risk
• B. It helps in determination of the cost of protecting what is important
• C. It helps in taking risk response decisions
• D. It helps making smart choices based on potential risk mitigation costs and losses

Answer: A,B,D

 

NEW QUESTION 34
An organization's IT infrastructure is running end-of-life software that is not allowed without exception approval. Which of the following would provide the MOST helpful information to justify investing in updated software?

• A. The balanced scorecard
• B. A cost-benefit analysis
• C. The risk management framework

Answer: B

Explanation:
D, A roadmap of IT strategic planning

 

NEW QUESTION 35
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