The board of directors of a major retail chain wants to know what capabilities are in place to prevent customer credit card data from being hacked.
Which of the following should be established to provide useful information about a potential future event?
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A. B. C. D.B.
To provide useful information about a potential future event related to preventing customer credit card data from being hacked, lead indicators should be established.
Lead indicators are a type of performance metric that help predict future performance and can be used to assess progress toward achieving a goal or objective. These metrics are forward-looking and proactive, allowing organizations to take action to prevent or mitigate negative events before they occur.
In this case, lead indicators can help the retail chain predict potential future cybersecurity threats and assess the effectiveness of their existing controls and mitigation strategies. For example, lead indicators could include metrics such as the number of failed login attempts, frequency of firewall updates, or the percentage of employees who have completed cybersecurity training. By tracking these metrics over time, the retail chain can identify trends and take corrective action to prevent potential cyber-attacks before they occur.
On the other hand, lag indicators are a type of performance metric that measure past performance and are reactive in nature. These metrics provide insights into what has already happened and are often used to track progress toward achieving long-term goals or objectives. Lag indicators can include metrics such as the number of security incidents, cost of data breaches, or customer complaints related to data security. While lag indicators can be useful for assessing the effectiveness of past mitigation efforts, they may not be as useful for predicting future events.
Risk tolerance is a concept that defines the level of risk an organization is willing to accept to achieve its objectives. It is not a performance metric that provides information about a potential future event.
Performance indicators are metrics used to track progress toward achieving specific goals or objectives. While they can provide useful information about an organization's performance, they may not be as useful for predicting potential future events.
In conclusion, lead indicators should be established to provide useful information about potential future events related to preventing customer credit card data from being hacked.