CISM Exam Dumps - Isaca Certification Questions and Answers

Cost-benefit analysis of mitigating controls is the BEST way to assist in determining whether to accept residual risk of a critical security system, because it helps to compare the costs of implementing and maintaining the controls with the benefits of reducing the risk and the potential losses. Cost-benefit analysis can help to justify the investment in security controls and to optimize the level of residual risk that is acceptable for the organization.

References =

CISM Review Manual, 16th Edition, ISACA, 2020, p. 50: “Cost-benefit analysis is the process of comparing the costs of risk treatment options with the benefits of risk reduction and the potential losses from risk events.”

CISM Review Manual, 16th Edition, ISACA, 2020, p. 51: “Cost-benefit analysis can help to justify the investment in information security controls and to optimize the level of residual risk that is acceptable for the enterprise.”

CISM Domain 2: Information Risk Management (IRM) [2022 update]: “Cost-benefit analysis: This is a comparison of the costs of implementing and maintaining security controls with the benefits of reducing risk and potential losses. It helps to justify the investment in security controls and optimize the level of residual risk.”

The best thing to include in a business case when the return on investment (ROI) for an information security initiative is difficult to calculate is an estimated reduction in risk. Risk reduction is the expected benefit of implementing an information security initiative, as it reduces the likelihood and impact of threats and vulnerabilities that may affect the organization’s information assets and systems. By estimating the reduction in risk, the information security manager can demonstrate the value and benefits of the information security initiative to the organization’s performance, reputation, and competitiveness. The information security manager can also compare the estimated reduction in risk with the estimated cost of the information security initiative to determine its cost-effectiveness and feasibility. The other options are not the best thing to include in a business case, although they may be some inputs or outputs of the risk assessment process. A projected increase in maturity level is a potential outcome of implementing an information security initiative, as it improves the organization’s capabilities and processes for managing information security risks. However, it does not necessarily reflect the actual reduction in risk or the ROI of the information security initiative. A projected cost over time is a component of calculating the ROI of an information security initiative, as it reflects the total cost of ownership and maintenance of the initiative. However, it does not indicate the expected benefit or value of the initiative. An estimated increase in efficiency is a possible benefit of implementing an information security initiative, as it may enhance the organization’s productivity and performance. However, it may not be directly related to the reduction in risk or the ROI of the information security initiative.

The primary purpose for continuous monitoring of security controls is to ensure that the controls are effective in achieving the desired security objectives and mitigating the identified risks. Continuous monitoring provides ongoing assurance that the planned and implemented security controls are aligned with the organizational risk tolerance and can respond to changes in the threat environment, the system, or the business processes. Continuous monitoring also helps to identify and address any control weaknesses or gaps in a timely manner. (From CISM Review Manual 15th Edition and NIST Special Publication 800-1371)

References: CISM Review Manual 15th Edition, page 181, section 4.3.2.4; NIST Special Publication 800-1371, page 1, section 1.1.

 An organization-wide social media policy is a document that defines the rules and guidelines for using social media platforms within the organization. It covers topics such as who can use social media, what they can post, how they should protect confidential information, and what are the consequences for violating the policy. An organization-wide social media policy helps to mitigate the risk of confidential information being disclosed by employees on social media by providing a clear and consistent framework for managing social media activities12.

References = 1: CISM Review Manual (Digital Version), page 271 2: CISM Review Manual (Print Version), page 271

 Before transferring personal data across borders, an organization should first assess the local or regional regulations that apply to the data protection and privacy of the data subjects. This will help the organization to identify the legal requirements and risks involved in the data transfer, and to choose the appropriate tools and safeguards to ensure compliance and protection. For example, the organization may need to obtain consent from the data subjects, use adequacy decisions, standard contractual clauses, or other mechanisms to ensure an adequate level of protection in the third country, or rely on specific derogations for certain situations. The other options are not the first steps to take, although they may be relevant at later stages of the data transfer process. References =

Guide to the cross-border transfer of personal data in the GDPR

New guidance issued by the EDPB on international transfers of personal data

Requirements for transferring personal information across borders

Performing an analysis of the change is the first step in addressing the issue of an IT employee making a change to a firewall rule outside of the change control process because it helps to understand the reason, impact, and risk of the change and to decide whether to approve, reject, or reverse it. Requiring that the change be reversed is not the first step because it may cause more disruption or damage without proper analysis and testing. Reviewing the change management process is not the first step because it does not address the specific issue or incident at hand, but rather focuses on improving the process for future changes. Reporting the event to senior management is not the first step because it does not resolve the issue or incident, but rather escalates it without sufficient information or recommendation. References: https://www.isaca.org/resources/isaca-journal/issues/2018/volume-3/change-management-in-the-age-of-digital-transformation https://www.isaca.org/resources/isaca-jour nal/issues/

This answer best indicates the effectiveness of the vendor risk management process because it shows that the organization has established and enforced clear and consistent security requirements and expectations for its vendors, and that the vendors have demonstrated their compliance and commitment to security best practices. A globally recognized security standard, such as ISO 27001, NIST CSF, or COBIT, provides a comprehensive and objective framework for assessing and improving the security posture and performance of vendors.

References: The CISM Review Manual 2023 states that “the information security manager is responsible for ensuring that the security requirements and expectations for third-party products and services are defined, communicated, and enforced” and that “the information security manager should verify that the third parties have implemented adequate security controls and practices, and that they comply with applicable standards and regulations” (p. 138). The CISM Review Questions, Answers & Explanations Manual 2023 also provides the following rationale for this answer: “Increase in the percentage of vendors certified to a globally recognized security standard is the correct answer because it best indicates the effectiveness of the vendor risk management process, as it shows that the organization has established and enforced clear and consistent security requirements and expectations for its vendors, and that the vendors have demonstrated their compliance and commitment to security best practices” (p. 63). Additionally, the article Vendor Risk Management Demystified from the ISACA Journal 2015 states that “a globally recognized security standard provides a common language and framework for evaluating and improving the security posture and performance of vendors” and that “a vendor certification to a globally recognized security standard can help to reduce the risk of security breaches, increase the trust and confidence of customers and stakeholders, and enhance the reputation and competitiveness of the vendor” (p. 3

 A controls audit is the best indicator of an organization’s information security status, as it provides an independent and objective assessment of the design, implementation, and effectiveness of the information security controls. A controls audit can also identify the strengths and weaknesses of the information security program, as well as the compliance with the policies, standards, and regulations. A controls audit can cover various aspects of information security, such as governance, risk management, incident management, business continuity, and technical security. A controls audit can be conducted by internal or external auditors, depending on the scope, purpose, and frequency of the audit.

The other options are not as good as a controls audit, as they do not provide a comprehensive and holistic view of the information security status. Intrusion detection log analysis is a technique to monitor and analyze the network or system activities for signs of unauthorized or malicious access or attacks. It can help to detect and respond to security incidents, but it does not measure the overall performance or maturity of the information security program. Threat analysis is a process to identify and evaluate the potential sources, methods, and impacts of threats to the information assets. It can help to prioritize and mitigate the risks, but it does not verify the adequacy or functionality of the information security controls. Penetration test is a simulated attack on the network or system to evaluate the vulnerability and exploitability of the information security defenses. It can help to validate and improve the technical security, but it does not assess the non-technical aspects of information security, such as governance, policies, or awareness. References =

CISM Review Manual, 16th Edition, ISACA, 2022, pp. 211-212, 215-216, 233-234, 237-238.

CISM Questions, Answers & Explanations Database, ISACA, 2022, QID 1012.

= Following the incident response plan is the most important step for the security manager before classifying the suspected event as a security incident, as it provides the guidance and procedures for the incident management team to follow in order to identify, contain, analyze, and resolve security incidents. The incident response plan should define the roles and responsibilities of the incident management team, the criteria and process for incident classification and prioritization, the communication and escalation protocols, the tools and resources for incident handling, and the post-incident review and improvement activities123. References =

1: CISM Review Manual 15th Edition, page 199-2004

2: CISM Practice Quiz, question 1011

3: Computer Security Incident Handling Guide5, page 2-3

The best way to ensure the organization’s security objectives are embedded in business operations is to implement an information security governance framework. An information security governance framework is a set of policies, procedures, standards, guidelines, roles, and responsibilities that define and direct how the organization manages and measures its information security activities. An information security governance framework helps to align the information security strategy with the business strategy and the organizational culture, and to ensure that the information security objectives are consistent with the business objectives and the stakeholder expectations. An information security governance framework also helps to establish the authority, accountability, and communication channels for the information security function, and to provide the necessary resources, tools, and controls to implement and monitor the information security program. By implementing an information security governance framework, the organization can embed the information security objectives in business operations, and ensure that the information security function supports and enables the business processes and functions, rather than hinders or restricts them.

References = CISM Review Manual, 16th Edition, Chapter 1: Information Security Governance, Section: Information Security Governance Framework, page 181; CISM Review Questions, Answers & Explanations Manual, 10th Edition, Question 75, page 702.

= Disconnecting the device from the network is the first step when an IoT device in an organization’s network is confirmed to have been hacked, as it prevents the attacker from further compromising the device or using it as a pivot point to attack other devices or systems on the network. Disconnecting the device also helps preserve the evidence of the attack for later forensic analysis and remediation. Disconnecting the device should be done in accordance with the incident response plan and the escalation procedures123. References =

1: CISM Review Manual 15th Edition, page 2004

2: CISM Practice Quiz, question 1072

3: IoT Security: Incident Response, Forensics, and Investigations, section “IoT Incident Response”

The best way to ensure that information security concerns are considered during the procurement of SaaS solutions is to integrate information security risk assessments into the procurement process. This will allow the organization to identify and evaluate the potential security risks and impacts of using a SaaS provider, and to select the most appropriate solution based on the risk appetite and tolerance of the organization. Information security risk assessments should be conducted at the early stages of the procurement process, before selecting a vendor or signing a contract, and should be updated periodically throughout the contract lifecycle.

Providing regular information security training to the procurement team (B) is a good practice, but it may not be sufficient to address the specific security issues and challenges of SaaS solutions. The procurement team may not have the expertise or the authority to conduct information security risk assessments or to negotiate security requirements with the vendors.

Inviting IT members into regular procurement team meetings to influence best practice © is also a good practice, but it may not be effective if the IT members are not involved in the actual procurement process or decision making. The IT members may not have the opportunity or the influence to conduct information security risk assessments or to ensure that security concerns are adequately addressed in the procurement contracts.

Enforcing the right to audit in procurement contracts with SaaS vendors (D) is an important control, but it is not the most effective way to ensure that information security concerns are considered during the procurement process. The right to audit is a post-contractual measure that allows the organization to verify the security controls and compliance of the SaaS provider, but it does not prevent or mitigate the security risks that may arise from using a SaaS solution. The right to audit should be complemented by information security risk assessments and other security requirements in the procurement contracts.

References = CISM Review Manual (Digital Version), Chapter 3: Information Security Program Development and Management, Section: Information Security Program Management, Subsection: Procurement and Vendor Management, Page 141-1421

An effective information security awareness training program should aim to improve the knowledge, skills and behavior of the employees regarding information security. One of the ways to measure the effectiveness of such a program is to conduct phishing simulations, which are mock phishing attacks that test the employees’ ability to identify and report phishing emails. An increase in the identification rate during phishing simulations indicates that the employees have learned how to recognize and avoid phishing attempts, which is one of the common threats to information security. Therefore, this is the best indication of an effective information security awareness training program among the given options.

The other options are not as reliable or relevant as indicators of an effective information security awareness training program. An increase in the frequency of phishing tests does not necessarily mean that the employees are learning from them or that the tests are aligned with the learning objectives of the program. An increase in positive user feedback may reflect the satisfaction or engagement of the employees with the program, but it does not measure the actual learning outcomes or behavior changes. An increase in the speed of incident resolution may be influenced by other factors, such as the availability and efficiency of the incident response team, the severity and complexity of the incidents, or the tools and processes used for incident management. Moreover, the speed of incident resolution does not reflect the prevention or reduction of incidents, which is a more desirable goal of an information security awareness training program. References =

CISM Review Manual, 16th Edition, ISACA, 2022, pp. 201-202, 207-208.

CISM Questions, Answers & Explanations Database, ISACA, 2022, QID 1001.

= The method of operation used by the attacker is the most useful information for an information security manager when conducting a post-incident review of an attack. This information can help identify the root cause of the incident, the vulnerabilities exploited, the impact and severity of the attack, and the effectiveness of the existing security controls. The method of operation can also provide insights into the attacker’s motives, skills, and resources, which can help improve the organization’s threat intelligence and risk assessment. The cost of the attack to the organization, the location of the attacker, and the details from IDS logs are all relevant information for a post-incident review, but they are not as useful as the method of operation for improving the incident handling process and preventing future attacks. References = CISM Review Manual 2022, page 316; CISM Item Development Guide 2022, page 9; ISACA CISM: PRIMARY goal of a post-incident review should be to?