Understanding Risk Management in Business

What is the first step in risk management?

• Risk assessment

• Cybersecurity posture assessment

• Risk avoidance

• Risk retention

Which of the following is considered an intangible asset?

• A computer server

• A physical document

• The data on a computer

• A firewall

What does a vulnerability represent in risk management?

• A strong security measure

• A potential for an asset to be exploited

• A type of risk avoidance

• A cybersecurity posture

Which method assigns real numbers to the costs of damages in risk assessment?

• Cybersecurity posture assessment

• Threat assessment

• Quantitative analysis

• Qualitative analysis

What is the purpose of cybersecurity posture assessment?

• To manage risk retention

• To identify all tangible assets

• To assess the overall state and effectiveness of security

• To eliminate all risks

Which of the following is a way to reduce risk?

• Avoiding asset identification

• Configuring redundancy for critical systems

• Not updating security measures

• Ignoring vulnerabilities

What is risk avoidance?

• Reducing risk to an acceptable level

• Completely avoiding or eliminating risk

• Transferring risks to another party

• Accepting all risks

How can IoT devices be cleared to mitigate risk?

• By upgrading their firmware

• By increasing their storage capacity

• By connecting them to more devices

• By performing a factory reset

What is an example of transferring risk?

• Performing regular risk assessments

• Implementing anti-malware software

• Outsourcing financial transactions

• Creating new network passwords

What does risk retention involve?

• Avoiding any changes to the cybersecurity posture

• Eliminating all possible threats

• Transferring all risks to insurance companies

• Accepting the risk and budgeting for potential losses