The Importance of Risk Profiles for Effective Security Decisions | CISM Exam Answer

B.

A risk profile is a key document in any organization's risk management process, which is designed to identify, assess, and prioritize potential threats to the organization's assets. The primary purpose of a risk profile is to help support effective security decisions, and there are several ways in which it achieves this:

1. Identifying Risks: The first step in managing risks is identifying them. A risk profile provides a comprehensive list of potential risks to the organization, including both internal and external threats. By identifying these risks, the organization can prioritize and allocate resources to address them.

2. Assessing Risks: Once risks have been identified, the next step is to assess their potential impact on the organization. A risk profile typically includes an analysis of the likelihood and potential impact of each risk, which helps the organization to prioritize its risk management efforts.

3. Prioritizing Risk Reduction: With a clear understanding of the risks facing the organization and their potential impact, the organization can prioritize its risk reduction efforts. A risk profile helps to identify the most critical risks, allowing the organization to focus its resources on addressing those first.

4. Enabling Comparison with Industry Best Practices: A risk profile also enables the organization to compare its risk management practices with those of other organizations in the industry. By understanding how other organizations are addressing similar risks, the organization can identify best practices and areas for improvement.

In summary, the correct answer to the question is B. A risk profile supports effective security decisions primarily by identifying priorities for risk reduction. While it also identifies risks, assesses their potential impact, and enables comparison with industry best practices, the primary focus is on prioritizing risk reduction efforts.