Denial of Service Risk and Decision Making in Global Financial Institutions

Denial of Service Risk Assessment in Global Financial Institutions

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Question

A global financial institution has decided not to take any further action on a denial of service (DoS) risk found by the risk assessment team.

The MOST likely reason they made this decision is that:

Answers

Explanations

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A. B. C. D.

C.

An organization may decide to live with specific risks because it would cost more to protect themselves than the value of the potential loss.

The safeguards need to match the risk level.

While countermeasures could be too complicated to deploy, this is not the most compelling reason.

It is unlikely that a global financial institution would not be exposed to such attacks and the frequency could not be predicted.

The correct answer is C. the cost of the countermeasure outweighs the value of the asset and potential loss.

Explanation:

Denial of Service (DoS) is a type of cyber attack that prevents legitimate users from accessing the resources or services of a system. This type of attack can cause significant damage to an organization, especially in the case of financial institutions where the availability of services is critical. Risk assessment is a process that helps organizations identify, assess, and prioritize potential risks to their information systems.

When a risk is identified, the organization has several options to address it, including risk acceptance, risk mitigation, risk transfer, or risk avoidance. In the case of the global financial institution, the decision was made not to take any further action on the identified DoS risk. The most likely reason for this decision is that the cost of implementing the countermeasure to mitigate the risk outweighs the potential loss to the asset.

In other words, the organization has determined that the financial impact of a DoS attack is not significant enough to justify the cost of implementing a countermeasure. This decision may be based on a cost-benefit analysis that weighs the cost of the countermeasure against the potential loss to the asset.

Option A, "there are sufficient safeguards in place to prevent this risk from happening," is unlikely to be the reason since the risk assessment team has already identified the risk. If there were sufficient safeguards, the risk would not have been identified in the first place.

Option B, "the needed countermeasure is too complicated to deploy," may be a valid reason in some cases, but it is less likely than option C. Most financial institutions have complex IT infrastructure and security systems in place, and they typically have the resources and expertise to deploy sophisticated countermeasures if necessary.

Option D, "The likelihood of the risk occurring is unknown," is not a valid reason since the risk assessment team has already identified the risk. Even if the likelihood of the risk occurring is uncertain, the potential impact of a DoS attack on a financial institution is significant enough to warrant a response.