Incident Response and Risk Mitigation BDC Practice Questions (Page 8)

Questions 36–40

1. 36application · medium

   After a DeFi protocol has contained an exploit, the team is developing a recovery plan. What should be the FIRST step in the recovery process?

   • AImmediately deploy a new version of the smart contract.
   • BWait for the attacker to return the funds voluntarily.
   • CDelete all social media accounts to avoid negative publicity.
   • DAssess the full impact of the incident, including affected users and assets.
   Reveal Solution Discussion Select an answer first
2. 37foundation · easy

   Which of the following is a common risk mitigation measure for DeFi protocols that involves incentivizing security researchers to find and report vulnerabilities?

   • AInsurance fund
   • BGovernance token
   • CBug bounty program
   • DSmart contract audit
   Reveal Solution Discussion Select an answer first
4. 38foundation · easy

   What is the primary purpose of forensic analysis in blockchain incident response?

   • ATo recover stolen funds by reversing transactions
   • BTo trace the flow of funds and identify the attack vector
   • CTo delete malicious transactions from the blockchain
   • DTo identify the physical location of the attacker
   Reveal Solution Discussion Select an answer first
5. 39foundation · easy

   What is the primary purpose of a smart contract audit in a DeFi protocol's risk mitigation strategy?

   • ATo identify vulnerabilities and security flaws in the code before deployment
   • BTo ensure the protocol is profitable for its users
   • CTo increase the gas efficiency of the smart contract
   • DTo provide legal compliance certification
   Reveal Solution Discussion Select an answer first
6. 40expert · hard

   A DeFi protocol is planning its risk mitigation strategy. They have a limited budget and must choose between conducting a full security audit, launching a bug bounty, and purchasing insurance. The protocol is new and has not been audited. What is the most logical first investment?

   • AConduct a full security audit first, as it is the foundation for other risk mitigation measures.
   • BSkip all three and rely on the protocol's novelty to deter attackers.
   • CPurchase insurance first, as it provides immediate financial protection.
   • DLaunch a bug bounty first, as it is cheaper and faster.
   Reveal Solution Discussion Select an answer first