Return on Investment (ROI) and Cost-Benefit Analysis ACCISO Practice Questions (Page 2)

Questions 6–10

1. 6foundation · easy

   How can an intangible security benefit, such as improved customer trust, be quantified for a cost-benefit analysis?

   • ABy assigning a fixed monetary value of $1 million to all intangible benefits
   • BBy calculating the exact dollar amount from financial statements
   • CBy using proxy metrics such as customer retention rates or brand value surveys
   • DBy excluding intangible benefits from the analysis entirely
   Reveal Solution Discussion Select an answer first
2. 7expert · hard

   A CISO is evaluating a new identity and access management (IAM) platform. The vendor quotes a 3-year ROI of 120%, but the CISO knows that the projected benefits depend heavily on user adoption rates and that the implementation timeline may slip. Which adjustment best incorporates risk into the ROI analysis?

   • APresent the vendor's ROI without modification to avoid bias
   • BApply a probability factor to the projected benefits based on adoption risk
   • CExtend the payback period to match the implementation timeline
   • DUse a higher discount rate for future benefits
   Reveal Solution Discussion Select an answer first
4. 8foundation · easy

   In the context of security investments, ROI is best defined as:

   • AThe time required to recover the initial investment
   • BA measure of the financial return generated by an investment relative to its cost
   • CThe reduction in risk achieved by a security control
   • DThe total amount of money spent on security controls
   Reveal Solution Discussion Select an answer first
5. 9expert · hard

   A company is evaluating a security project with an initial investment of $100,000 and expected annual cash flows of $40,000 for 3 years. The company's cost of capital is 10%. What is the approximate IRR of this project?

   • A9.7%
   • B12%
   • C8%
   • D10%
   Reveal Solution Discussion Select an answer first
6. 10foundation · easy

   What is the primary purpose of calculating Return on Investment (ROI) for a security initiative?

   • ATo calculate the exact monetary value of every security benefit
   • BTo compare the financial efficiency of the investment against its cost
   • CTo determine the total cost of the security initiative
   • DTo identify all potential security risks to the organization
   Reveal Solution Discussion Select an answer first