Free Isaca CISM Practice Exam with Questions & Answers | Set: 11

Residual risk is the risk that remains after implementing risk mitigation actions. It is the most valuable component for senior management because it helps them to evaluate the effectiveness and efficiency of risk management and make informed decisions about risk acceptance, transfer or avoidance. References = CISM Review Manual, 16th Edition, Chapter 2, Section 2.3.41

= Continuous monitoring is the process of collecting, analyzing, and reporting on the security status of an organization’s information systems and networks. Continuous monitoring enables an organization to identify and contain security incidents by providing timely and accurate information on the security events, alerts, incidents, and threats that may affect the organization. Continuous monitoring also helps to measure the effectiveness and compliance of the security controls, policies, and procedures that are implemented to protect the organization’s information assets. Continuous monitoring can be performed using various tools and methods, such as security information and event management (SIEM) tools, intrusion detection and prevention systems (IDS/IPS), vulnerability scanners, log analyzers, and audit trails.

References = CISM Manual1, Chapter 6: Incident Response Planning (IRP), Section 6.2: Continuous Monitoring2

1: https://store.isaca.org/s/store#/store/browse/cat/a2D4w00000Ac6NNEAZ/tiles 2: 3

Management decisions concerning information security investments will be most effective when they are based on the reporting of consistent and periodic assessments of risks. This will help management to understand the current and emerging threats, vulnerabilities, and impacts that affect the organization’s information assets and business processes. It will also help management to prioritize the allocation of resources and funding for the most critical and cost-effective security controls and solutions. The reporting of consistent and periodic assessments of risks will also enable management to monitor the performance and effectiveness of the information security program, and to adjust the security strategy and objectives as needed. References = CISM Review Manual 15th Edition, page 28.

The best approach to developing an incident escalation process is to classify incidents based on the information assets affected, because this will help to determine the impact and severity of the incidents, as well as the appropriate response and recovery actions. The information assets affected by an incident can indicate the potential loss of confidentiality, integrity, or availability of the information, as well as the legal, regulatory, contractual, or reputational implications. By classifying incidents based on the information assets affected, the organization can prioritize the incidents and escalate them to the relevant stakeholders and authorities.

References = CISM Review Manual, 16th Edition, page 2901; A Practical Approach to Incident Management Escalation2

= According to the CISM Review Manual, the information security manager should actively engage with stakeholders to align security and business goals. This means understanding the business needs, expectations, and risk appetite of the stakeholders, and communicating the value and benefits of security initiatives to them. By engaging with stakeholders, the information security manager can also gain their support and commitment for security programs and projects, and ensure that security objectives are aligned with business strategy and priorities. References = CISM Review Manual, 16th Edition, ISACA, 2020, page 23.

The explanation given in the manual is:

The information security manager’s knowledge of the business is the most critical factor for information security program success because it enables him or her to align security objectives with business goals and communicate effectively with senior management and other stakeholders. The other choices are important elements of an information security program but not as critical as the information security manager’s knowledge of the business.

An information security program is a set of policies, procedures, standards, guidelines, and tools that aim to protect an organization’s information assets from threats and ensure compliance with laws and regulations. An information security manager is a professional who oversees and coordinates the implementation and maintenance of an information security program. An information security manager should have a good understanding of the business environment, culture, strategy, processes, and needs of an organization to ensure that security supports its objectives.

Human error remains the leading cause of cybersecurity breaches, including mishandling data, misconfigurations, and falling for phishing attacks.

“Human error continues to be one of the most common causes of data breaches and security incidents.”

— CISM Review Manual 15th Edition, Chapter 4: Incident Management, Section: Root Cause Analysis*

 Strengthening endpoint security is the most immediate focus when shifting to a work-from-home model with an increased need for remote access security, as this reduces the risk of unauthorized access, data leakage, malware infection, and other threats that may compromise the confidentiality, integrity, and availability of the organization’s information assets. Moving to a zero trust access model, enabling network-level authentication, and enhancing cyber response capability are also important, but not as urgent as strengthening endpoint security, as they require more time, resources, and planning to implement effectively. References = CISM Review Manual 2023, page 1561; CISM Review Questions, Answers & Explanations Manual 2023, page 302; ISACA CISM - iSecPrep, page 153

Information security strategy is the most important factor when defining how an information security budget should be allocated because it helps to align the security objectives and initiatives with the business goals and priorities. An information security strategy is a high-level plan that defines the vision, mission, scope, and direction of the security program, as well as the roles and responsibilities, governance structures, policies and standards, risk management approaches, and performance measurement methods. An information security strategy helps to identify and prioritize the security needs and requirements of the organization, as well as to allocate the resources and funding accordingly. An information security strategy also helps to communicate the value and benefits of security to the stakeholders and justify the security investments. Therefore, information security strategy is the correct answer.

Leadership support reinforces the importance of security awareness and motivates employees to engage with training.

“Security awareness programs are most effective when they have visible support from senior management, reinforcing their importance.”

— CISM Review Manual 15th Edition, Chapter 3: Information Security Program Development and Management, Section: Security Awareness and Training*

 Reviewing the results of the vendor’s independent control reports is the best way to assess the risk associated with using a SaaS vendor because it provides an objective and reliable evaluation of the vendor’s security controls and practices. Independent control reports, such as SOC 2 or ISO 27001, are conducted by third-party auditors who verify the vendor’s compliance with industry standards and best practices. These reports can help the customer identify any gaps or weaknesses in the vendor’s security posture and determine the level of assurance and trust they can place on the vendor.

Verifying that information security requirements are included in the contract is a good practice, but it does not provide sufficient assurance that the vendor is actually meeting those requirements. The contract may also have limitations or exclusions that reduce the customer’s rights or remedies in case of a breach or incident.

Requesting customer references from the vendor is not a reliable way to assess the risk associated with using a SaaS vendor because the vendor may only provide positive or biased references that do not reflect the true experience or satisfaction of the customers. Customer references may also not have the same security needs or expectations as the customer who is conducting the assessment.

Requiring vendors to complete information security questionnaires is a useful way to gather information about the vendor’s security policies and procedures, but it does not provide enough evidence or verification that the vendor is actually implementing and maintaining those policies and procedures. Information security questionnaires are also subject to the vendor’s self-reporting and interpretation, which may not be accurate or consistent. References =

CISM Review Manual 15th Edition, page 144

SaaS Security Risk and Challenges - ISACA1

SaaS Security Checklist & Assessment Questionnaire | LeanIX2

Risk Assessment Guide for Microsoft Cloud3

= The information security manager’s first course of action in this situation should be to conduct a risk assessment, which is a process of identifying, analyzing, and evaluating the information security risks that arise from the violation of the policy prohibiting the use of cameras at the office. The risk assessment can help to determine the likelihood and impact of the unauthorized or inappropriate use of the cameras on the smartphones and tablet computers, such as capturing, transmitting, or disclosing sensitive or confidential information, compromising the privacy or security of the employees, customers, or partners, or violating the legal or regulatory requirements. The risk assessment can also help to identify and prioritize the appropriate risk treatment options, such as implementing technical, administrative, or physical controls to disable, restrict, or monitor the camera usage, enforcing the policy compliance and awareness, or revising the policy to reflect the current business needs and environment. The risk assessment can also help to communicate and report the risk level and status to the senior management and the relevant stakeholders, and to provide feedback and recommendations for improvement and optimization of the policy and the risk management process.

Revising the policy, performing a root cause analysis, and communicating the acceptable use policy are all possible courses of action that the information security manager can take after conducting the risk assessment, but they are not the first ones. Revising the policy is a process of updating and modifying the policy to align with the business objectives and strategy, to address the changes and challenges in the business and threat environment, and to incorporate the feedback and suggestions from the risk assessment and the stakeholders. Performing a root cause analysis is a process of investigating and identifying the underlying causes and factors that led to the violation of the policy, such as the lack of awareness, training, or enforcement, the inconsistency or ambiguity of the policy, or the conflict or gap between the policy and the business requirements or expectations. Communicating the acceptable use policy is a process of informing and educating the employees and the other users of the smartphones and tablet computers about the purpose, scope, and content of the policy, the roles and responsibilities of the users, the benefits and consequences of complying or violating the policy, and the methods and channels of reporting or resolving any policy issues or incidents. References = CISM Review Manual 15th Edition, pages 51-531; CISM Practice Quiz, question 1482

Comprehensive and Detailed Explanation = The risk owner is the person or entity with the accountability and authority to manage a risk. The risk owner should have the decision-making authority and the ability to allocate resources for risk treatment and related control activities. The risk owner should also be responsible for monitoring and reporting on the risk, but these are not the most important considerations when assigning a risk owner. The risk owner may not have adequate knowledge of risk treatment and related control activities, but can delegate or consult with experts as needed. The risk owner should also have sufficient time for managing the risk effectively, but this is not a prerequisite for assigning a risk owner.

References =

CISM Review Manual 15th Edition, page 76

CISM Practice Quiz, question 4171

= The primary objective of performing a post-incident review is to identify the root cause of the incident, which is the underlying factor or condition that enabled or facilitated the occurrence of the incident. Identifying the root cause helps to understand the nature and origin of the incident, and to prevent or mitigate similar incidents in the future. A post-incident review also aims to evaluate the effectiveness and efficiency of the incident response process, identify lessons learned and best practices, and recommend improvements for the incident management policies, procedures, controls, and tools. However, these are secondary objectives that depend on the identification of the root cause as the first step.

Re-evaluating the impact of incidents is not the primary objective of performing a post-incident review, as it is already done during the incident response process. The impact of incidents is the extent and severity of the damage or harm caused by the incident to the organization’s assets, operations, reputation, or stakeholders. Re-evaluating the impact of incidents may be part of the post-incident review, but it is not the main goal.

Identifying vulnerabilities is not the primary objective of performing a post-incident review, as it is also done during the incident response process. Vulnerabilities are weaknesses or flaws in the system or network that can be exploited by attackers to compromise the confidentiality, integrity, or availability of the information or resources. Identifying vulnerabilities may be part of the post-incident review, but it is not the main goal.

Identifying control improvements is not the primary objective of performing a post-incident review, as it is a result of the root cause analysis. Controls are measures or mechanisms that are implemented to protect the system or network from threats, reduce risks, or ensure compliance with policies and standards. Identifying control improvements is an important outcome of the post-incident review, but it is not the main goal. References =

ISACA CISM: PRIMARY goal of a post-incident review should be to?

CISM Exam Overview - Vinsys

CISM Review Manual, Chapter 4, page 176

CISM Exam Content Outline | CISM Certification | ISACA, Domain 4, Task 4.3

The most effective way to determine the alignment of an information security program with the business strategy is D. Engage business process owners. This is because business process owners are the key stakeholders who are responsible for defining, executing, and monitoring the business processes that support the organization’s mission, vision, and goals. By engaging them, the information security manager can understand their needs, expectations, and challenges, and ensure that the information security program is aligned with their requirements and objectives. Engaging business process owners can also help to establish trust, collaboration, and communication between the information security function and the business units, and foster a culture of security awareness and accountability.

Business process owners are the key stakeholders who are responsible for defining, executing, and monitoring the business processes that support the organization’s mission, vision, and goals. By engaging them, the information security manager can understand their needs, expectations, and challenges, and ensure that the information security program is aligned with their requirements and objectives. (From CISM Manual or related resources)

References = CISM Review Manual 15th Edition, Chapter 1, Section 1.2.2, page 201; CISM Review Questions, Answers & Explanations Manual 9th Edition, Question 78, page 20

Business continuity is the primary objective of a cyber resilience strategy, as it aims to ensure that the organization can continue to deliver its essential products and services in the face of cyber disruptions, and recover to normal operations as quickly and effectively as possible. A cyber resilience strategy should align with the business continuity plan and support the organization’s mission, vision, and values. (From CISM Review Manual 15th Edition)