CISM Exam Dumps - Certified Information Security Manager

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

When integrating security risk management into an organization, it is most important to ensure that the risk management methodology follows an established framework, such as ISO 31000, NIST SP 800-30, or COBIT. This is because a framework provides a consistent and structured approach to identify, assess, treat, and monitor risks, and to align the risk management process with the organization’s objectives, culture, and governance. A framework also helps to ensure compliance with relevant standards and regulations, and to facilitate communication and reporting of risks to stakeholders.

References: The CISM Review Manual 2023 states that “the risk management methodology should follow an established framework that provides a consistent and structured approach to risk management” and that “the framework should be aligned with the enterprise’s objectives, culture, and governance, and should comply with applicable standards and regulations” (p. 94). The CISM Review Questions, Answers & Explanations Manual 2023 also provides the following rationale for this answer: “The risk management methodology follows an established framework is the correct answer because it is the most important factor to ensure the successful integration of security risk management into an organization, as it provides a common language and process for managing risks across the organization” (p. 29). Additionally, the article Integrating Risk Management into Business Processes from the ISACA Journal 2018 states that “a risk management framework provides a systematic and comprehensive approach to risk management that covers the entire risk management cycle, from risk identification to risk monitoring and reporting” and that “a risk management framework should be aligned with the organization’s strategy, culture, and governance, and should follow recognized standards and best practices, such as ISO 31000, NIST SP 800-30, or COBIT” (p. 1)

Verified Answer: According to the CISM Review Manual, 15th Edition, Chapter 3, Section 3.2.1.1, "Recommendations for enterprise investment in security technology should be primarily based on the organization’s risk tolerance."1

Comprehensive and Detailed Explanation: The organization’s risk tolerance is the degree of uncertainty that the organization is willing to accept in order to pursue its objectives. It reflects the organization’s appetite for risk and its ability to cope with potential losses or disruptions. The higher the risk tolerance, the more aggressive and innovative the security investments can be, as they can help achieve faster growth or competitive advantage. The lower the risk tolerance, the more conservative and defensive the security investments should be, as they can help protect the organization’s assets and reputation from potential threats.

References: 1: CISM Review Manual, 15th Edition, Chapter 3, Section 3.2.1.1

The greatest concern resulting from the lack of severity criteria in incident classification is that escalation procedures will be ineffective because they rely on severity criteria to determine when and how to escalate an incident to higher levels of authority or responsibility, and what actions or resources are required for resolving an incident. Statistical reports will be incorrect is not a great concern because they do not affect the incident response process directly, but rather provide information or analysis for improvement or evaluation purposes. The service desk will be staffed incorrectly is not a great concern because it does not affect the incident response process directly, but rather affects the availability or efficiency of one of its components. Timely detection of attacks will be impossible is not a great concern because it does not depend on severity criteria, but rather on monitoring and alerting mechanisms. References: https://www.isaca.org/resources/isaca-journal/issues/2017/volume-5/incident-response-lessons-learned https://www.isaca .org/resources/isaca-journal/issues/2018/volume-3/incident-response-lessons-learned

Security requirements are included in the vendor contract is the primary focus of the information security manager when outsourcing IT operations because it ensures that the vendor is legally bound to comply with the client’s security policies and standards, as well as any external regulations or laws. This also helps to define the roles and responsibilities of both parties, the security metrics and controls to be used, and the penalties for non-compliance or breach. Therefore, security requirements are included in the vendor contract is the correct answer.

References:

https://www.techtarget.com/searchsecurity/tip/15-benefits-of-outsourcing-your-cybersecurity-operations

https://www.sciencedirect.com/science/article/pii/S03 78720616302166