Midway through the fiscal year, a CISO notices that the security operations center (SOC) has already spent 80% of its annual budget for tool licensing, while only 50% of the year has passed. The CISO must take corrective action. Which action is most appropriate?

Ignore the variance because the annual budget may still balance by year-end

Immediately halt all non-essential SOC tool purchases and renegotiate vendor contracts

Reduce the SOC's staffing hours to compensate for the tool overspend

Request a supplemental budget from the CFO without analyzing the cause of the variance

Which of the following is the most effective way to justify a security investment to executive leadership?

Explain that competitors are using similar security tools

State that the technology is the latest and most advanced available

Emphasize that the security team recommends the purchase

Quantify the reduction in risk and the potential loss avoided

A startup company is creating its first security budget. The company has limited funding and needs to prioritize its spending. The CISO has identified several security needs, including endpoint protection, employee training, and a vulnerability management program. What type of budget would be most appropriate for a startup with limited resources?

Zero-based budget where every expense is justified from scratch.

Incremental budget based on industry benchmarks.

Flexible budget that adjusts based on revenue.

Capital budget that only includes major investments.

What is the first step in developing an information security budget that is aligned with organizational goals?

Calculate the total cost of ownership for all security assets

Draft a request for proposal for managed security services

Identify specific security tools and vendors to purchase

Understand the organization's strategic objectives and risk appetite

A healthcare organization's CISO is seeking approval for a new data loss prevention (DLP) system. The board is skeptical because the organization has not experienced a major data breach. Which justification approach is most likely to persuade the board?

Presenting a cost-benefit analysis that quantifies the potential financial impact of a breach and the DLP system's risk reduction

Requesting approval based on the CISO's professional judgment and experience

Emphasizing the technical capabilities of the DLP system and its integration with existing security tools

Highlighting that DLP is a best practice recommended by industry peers

EC-CouncilCertified Chief Information Security Officer

Domain 5Objective 4

Financial Planning and Budgeting CCISO Practice Questions (Page 8)

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 36–40

36application · medium
Midway through the fiscal year, a CISO notices that the security operations center (SOC) has already spent 80% of its annual budget for tool licensing, while only 50% of the year has passed. The CISO must take corrective action. Which action is most appropriate?
Select an answer first
37foundation · easy
Which of the following is the most effective way to justify a security investment to executive leadership?
Select an answer first
38application · medium
A startup company is creating its first security budget. The company has limited funding and needs to prioritize its spending. The CISO has identified several security needs, including endpoint protection, employee training, and a vulnerability management program. What type of budget would be most appropriate for a startup with limited resources?
Select an answer first
39foundation · easy
What is the first step in developing an information security budget that is aligned with organizational goals?
Select an answer first
40application · medium
A healthcare organization's CISO is seeking approval for a new data loss prevention (DLP) system. The board is skeptical because the organization has not experienced a major data breach. Which justification approach is most likely to persuade the board?
Select an answer first

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