Incident Response and Risk Mitigation BDC Practice Questions (Page 3)

Questions 11–15

1. 11foundation · easy

   During which phase of the incident response lifecycle does an organization establish monitoring tools, define escalation procedures, and train staff before any incident occurs?

   • ARecovery
   • BDetection and Analysis
   • CPreparation
   • DContainment
   Reveal Solution Discussion Select an answer first
2. 12application · medium

   A blockchain company experiences a security incident that affects users in multiple jurisdictions. What is the most important regulatory consideration during incident response?

   • ADetermine which data protection and financial regulations apply in each affected jurisdiction.
   • BOnly comply with the regulations of the company's home country.
   • CIgnore regulations until the incident is fully resolved.
   • DWait for the attacker to be caught before notifying regulators.
   Reveal Solution Discussion Select an answer first
4. 13application · medium

   A blockchain company is subject to both GDPR and the California Consumer Privacy Act (CCPA). During an incident, they need to notify affected users. What is the most appropriate approach?

   • AIgnore GDPR because the company is based in the US.
   • BComply with the stricter of the two regulations where they overlap, and ensure notifications are sent to all affected users as required.
   • COnly notify users in California because CCPA is more recent.
   • DNotify only the regulatory authorities and not the users.
   Reveal Solution Discussion Select an answer first
5. 14application · medium

   A DeFi protocol's team discovers a critical vulnerability in a newly deployed smart contract. The vulnerability could allow an attacker to drain the liquidity pool. The contract is not upgradeable, but the team has an emergency pause function. What is the best immediate action?

   • ATrigger the emergency pause function to halt all operations of the contract.
   • BWait for an attack to occur to confirm the vulnerability before taking action.
   • CMove all liquidity to a new contract and then deploy a fixed version.
   • DAttempt to upgrade the contract using a proxy pattern, even though it was not designed for upgrades.
   Reveal Solution Discussion Select an answer first
6. 15application · medium

   A blockchain security team is setting up monitoring for a DeFi protocol. They want to detect potential oracle manipulation attacks. Which monitoring approach is most effective for this specific threat?

   • AMonitor the gas price and alert when it spikes above a threshold.
   • BMonitor the number of transactions per block and alert when it exceeds a certain limit.
   • CMonitor the protocol's total value locked (TVL) and alert when it drops by more than 10%.
   • DMonitor price feeds for sudden deviations from external market prices and alert when the deviation exceeds a threshold.
   Reveal Solution Discussion Select an answer first