A university's CISO has a security budget of $1.2 million for the year. At the end of Q3, the CISO notices that the security team has spent 85% of the budget with three months remaining. The overspending is primarily due to higher-than-expected costs for a new identity management system and increased cloud security services. What should the CISO do to manage the budget for the remainder of the year?

Request a budget increase from the university administration without providing details.

Immediately stop all security spending until the end of the fiscal year.

Ignore the overspend and hope that the remaining costs will be lower than expected.

Review the remaining projects and defer or reduce non-critical expenditures to stay within the budget.

What does a positive return on investment (ROI) for a security project indicate?

The financial benefits of the project exceed its costs

The project costs more than it saves

The project has no impact on the organization's risk posture

The project is guaranteed to prevent all security incidents

A CISO is preparing the security budget for the next fiscal year. The company is planning to enter a new market that requires compliance with a strict data protection regulation. The CISO needs to include the cost of compliance in the budget. What is the best way to estimate these costs?

Wait until the regulation is fully enforced and then react to any compliance issues.

Use a percentage of revenue as a benchmark for compliance spending.

Conduct a gap analysis between current controls and the regulation's requirements, then estimate the cost of closing the gaps.

Copy the compliance budget from a similar company in the industry.

When estimating the cost of a security initiative, which of the following is considered an operational expense?

Licensing fee for a perpetual software license

Purchase of a new firewall appliance

Cost of a security operations center (SOC) building renovation

Annual subscription for a security information and event management (SIEM) service

EC-CouncilCertified Chief Information Security Officer

Domain 5Objective 4

Financial Planning and Budgeting CCISO Practice Questions (Page 5)

Part of the Strategic Planning, Finance, Procurement, and Vendor Management domain, which makes up ~21% of our current practice bank. EC-Council does not publish an official question count, but from its 150-minute exam (~60–100 total, ~13–21 in this domain), expect 2–4 from this objective — we provide 50 practice questions to prepare you well beyond it. (estimate)

50questions here

10free pages

8concepts

Questions 21–25

21application · medium
A university's CISO has a security budget of $1.2 million for the year. At the end of Q3, the CISO notices that the security team has spent 85% of the budget with three months remaining. The overspending is primarily due to higher-than-expected costs for a new identity management system and increased cloud security services. What should the CISO do to manage the budget for the remainder of the year?
Select an answer first
22foundation · easy
Which type of budget is characterized by setting spending limits based on the previous period's budget with adjustments for inflation or new initiatives?
Select an answer first
23foundation · easy
What does a positive return on investment (ROI) for a security project indicate?
Select an answer first
24application · medium
A CISO is preparing the security budget for the next fiscal year. The company is planning to enter a new market that requires compliance with a strict data protection regulation. The CISO needs to include the cost of compliance in the budget. What is the best way to estimate these costs?
Select an answer first
25foundation · easy
When estimating the cost of a security initiative, which of the following is considered an operational expense?
Select an answer first

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Financial Planning and Budgeting CCISO Practice Questions (Page 5)

Questions 21–25

Which type of budget is characterized by setting spending limits based on the previous period's budget with adjustments for inflation or new initiatives?

What does a positive return on investment (ROI) for a security project indicate?

A CISO is preparing the security budget for the next fiscal year. The company is planning to enter a new market that requires compliance with a strict data protection regulation. The CISO needs to include the cost of compliance in the budget. What is the best way to estimate these costs?

When estimating the cost of a security initiative, which of the following is considered an operational expense?

Keep studying — Strategic Planning, Finance, Procurement, and Vendor Management