Free ISO 27000 Foundation Information Security Risk Management Questions and Answers — Questions and Answers
Question 1: An organization, after conducting a risk assessment, determines that the cost of implementing a specific security control for a low-impact, low-likelihood risk is prohibitive. The management team formally documents their decision to take no further action against this risk. According to ISO/IEC 27000 terminology, which risk treatment option has been selected?
- Risk modification
- Risk avoidance
- Risk sharing
- Risk retention (Correct answer)
Correct answer: Risk retention
Risk retention, also known as risk acceptance, is the deliberate and informed decision to accept a particular risk without taking measures to reduce it. This is a valid risk treatment option, typically chosen when the cost of mitigation outweighs the potential impact of the risk, and the risk falls within the organization's predefined risk acceptance criteria.
Question 2: In the context of the ISO 27000 series, what is the primary responsibility of a designated 'risk owner'?
- To perform the day-to-day technical administration of a specific information asset.
- To have the accountability and authority to manage an identified risk. (Correct answer)
- To conduct the annual internal audit of the Information Security Management System (ISMS).
- To develop and write the organization's information security policies and procedures.
Correct answer: To have the accountability and authority to manage an identified risk.
According to ISO 27000 vocabulary, the 'risk owner' is the person or entity with the accountability and authority to manage a risk. This includes approving risk treatment plans and accepting residual risks. While they work with others, their key role is one of authority and accountability for the risk itself, which is distinct from the day-to-day management of an asset (asset owner).
Question 3: A company decides to purchase a comprehensive cybersecurity insurance policy to cover potential financial losses from a data breach. Within the ISO 27000 framework for risk management, this action is an example of which risk treatment strategy?
- Risk avoidance
- Risk mitigation
- Risk transfer (Correct answer)
- Risk acceptance
Correct answer: Risk transfer
Risk transfer, or risk sharing, involves moving the financial impact of a risk to a third party. Purchasing an insurance policy is a classic example of this, as the insurer agrees to bear some or all of the financial losses in exchange for premium payments.
Question 4: According to the guidance in ISO/IEC 27005, which of the following is an essential first step in the information security risk management process before risk identification can effectively begin?
- Selecting specific controls from Annex A.
- Performing a vulnerability scan of all network assets.
- Establishing the context. (Correct answer)
- Developing the risk treatment plan.
Correct answer: Establishing the context.
ISO/IEC 27005 outlines a structured process that begins with 'Context Establishment'. This step involves defining the scope, boundaries, and criteria for risk management, including risk evaluation and acceptance criteria. This context provides the foundation for all subsequent steps, such as risk identification, analysis, and treatment.
Question 5: A risk analysis team is evaluating information security risks using descriptive terms such as 'High', 'Medium', and 'Low' for both likelihood and impact. This method of analysis is best described as:
- Quantitative
- Asset-based
- Qualitative (Correct answer)
- Event-based
Correct answer: Qualitative
Qualitative risk analysis uses subjective, descriptive scales (e.g., High, Medium, Low) to assess the likelihood and impact of risks. This approach is contrasted with quantitative analysis, which assigns specific numerical or monetary values to risks.
Question 6: An organization has identified a significant risk associated with its legacy accounting software, which is no longer supported by the vendor. To address this, the management decides to decommission the old system and migrate to a new, fully supported platform. Which risk treatment option does this action represent?
- Risk mitigation
- Risk acceptance
- Risk transfer
- Risk avoidance (Correct answer)
Correct answer: Risk avoidance
Risk avoidance is a treatment option where an organization decides to eliminate the risk by discontinuing the activities or removing the conditions that create it. By decommissioning the unsupported legacy system, the organization is removing the source of the risk entirely.
Free ISO 27000 Foundation Information Security Risk Management Questions and Answers
An organization, after conducting a risk assessment, determines that the cost of implementing a specific security control for a low-impact, low-likelihood risk is prohibitive.
The management team formally documents their decision to take no further action against this risk.
According to ISO/IEC 27000 terminology, which risk treatment option has been selected?