Question 86 of 500 from exam CISM: Certified Information Security Manage

A.

The potential for financial loss is always a key factor when assessing the value of information.

Choices B, C and D may be contributors, but not the key factor.

When assessing the value of information, it is important to consider several factors, such as the potential financial loss, the cost of recreating the information, the cost of insurance coverage, and regulatory requirements. However, among these factors, the MOST important one to keep in mind when assessing the value of information is the potential financial loss.

The potential financial loss is the amount of money that an organization could lose if the information were compromised or lost. This could include the cost of notifying affected individuals, legal fees, fines and penalties, lost revenue, and damage to the organization's reputation. Therefore, understanding the potential financial loss can help organizations make informed decisions about how to protect their information and allocate resources effectively.

The cost of recreating the information is another factor that should be considered when assessing the value of information. This includes the cost of time and resources required to recreate the information, as well as any lost productivity that may result from the loss of the information. However, this factor is typically less important than the potential financial loss because it only reflects the cost of recreating the information, rather than the broader impact of a data breach or loss.

The cost of insurance coverage is another consideration when assessing the value of information. Insurance can help organizations mitigate the financial impact of a data breach or loss, but it should not be relied upon as the sole means of protecting information. Insurance policies often have limitations and exclusions that can leave organizations vulnerable to significant financial losses.

Finally, regulatory requirements should be considered when assessing the value of information. Regulatory requirements can vary depending on the industry and jurisdiction, and failure to comply with these requirements can result in fines and penalties. However, while regulatory requirements are important, they should not be the sole focus of an organization's information security strategy.

In conclusion, the potential financial loss is the MOST important factor to keep in mind when assessing the value of information. This information can help organizations make informed decisions about how to protect their information and allocate resources effectively, thereby minimizing the potential financial impact of a data breach or loss.