Risk Management CCOA Practice Questions (Page 5)

Questions 21–25

1. 21application · medium

   A financial services firm is implementing a risk management program. The firm has identified that its customer database is at risk of being exfiltrated by insiders. The firm decides to implement data loss prevention (DLP) tools, enforce least privilege access, and conduct regular audits. These actions are part of which step of the risk management process?

   • ARisk mitigation, because they are implementing controls to reduce the risk.
   • BRisk assessment, because they are evaluating the likelihood and impact.
   • CRisk monitoring, because they are tracking the effectiveness of controls.
   • DRisk identification, because they are identifying the risk of insider threat.
   Reveal Solution Discussion Select an answer first
2. 22application · medium

   A small e-commerce company relies on a third-party payment processor to handle credit card transactions. The company's security team determines that the risk of a data breach in the payment processing environment is high, but the company does not have the expertise to secure it themselves. They decide to continue using the third-party processor and sign a contract that holds the processor liable for any breach costs. Which risk response strategy is the company employing?

   • ARisk avoidance, because they are avoiding the risk by not processing payments themselves.
   • BRisk mitigation, because they are reducing the risk by using a third party.
   • CRisk transfer, because they are shifting the financial risk to the third-party processor.
   • DRisk acceptance, because they are accepting the risk and continuing operations.
   Reveal Solution Discussion Select an answer first
4. 23foundation · easy

   A company purchases cyber insurance to cover potential financial losses from a data breach. Which risk response strategy does this represent?

   • ARisk avoidance
   • BRisk acceptance
   • CRisk transfer
   • DRisk mitigation
   Reveal Solution Discussion Select an answer first
5. 24expert · hard

   A multinational corporation is implementing a risk management process. The company has operations in regions with different regulatory requirements and varying threat landscapes. The risk team has completed risk identification and assessment, and is now deciding on mitigation strategies. The team must ensure that the risk management process is continuous and adapts to changing threats and business objectives. Which of the following actions is most critical to ensure the effectiveness of the risk management process?

   • AImplementing all identified mitigation controls immediately.
   • BEstablishing a risk monitoring and review process that includes regular updates and triggers for reassessment.
   • CConducting risk assessments annually to update the risk register.
   • DDelegating risk management decisions to each regional office.
   Reveal Solution Discussion Select an answer first
6. 25foundation · easy

   Which step in the risk management process involves implementing security controls to reduce the level of risk?

   • ARisk identification
   • BRisk assessment
   • CRisk mitigation
   • DRisk monitoring
   Reveal Solution Discussion Select an answer first