Techniques for Evaluating Risk-Reduction Controls

Determining Risk-Reduction Control Implementation

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Question

Which of the following techniques MOST clearly indicates whether specific risk-reduction controls should be implemented?

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Explanations

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A. B. C. D.

A.

In a countermeasure cost-benefit analysis, the annual cost of safeguards is compared with the expected cost of loss.

This can then be used to justify a specific control measure.

Penetration testing may indicate the extent of a weakness but, by itself, will not establish the cost/benefit of a control.

Frequent risk assessment programs will certainly establish what risk exists but will not determine the maximum cost of controls.

Annual loss expectancy (ALE) is a measure which will contribute to the value of the risk but.

alone, will not justify a control.

The technique that most clearly indicates whether specific risk-reduction controls should be implemented is countermeasure cost-benefit analysis (option A).

Countermeasure cost-benefit analysis is a process that evaluates the potential costs and benefits of implementing a risk-reducing control. It is an essential step in deciding which countermeasures to implement to reduce risk. The objective of cost-benefit analysis is to determine if the expected benefits of a countermeasure justify its costs.

In this technique, the costs of implementing a countermeasure are compared to the benefits derived from its implementation. The costs may include the initial cost of the control, ongoing maintenance costs, and the costs of operating the control. The benefits may include the reduction in the likelihood of a security incident, the reduction in the impact of an incident, or other benefits.

Penetration testing (option B) is a technique used to evaluate the security of an organization's systems and applications by simulating attacks. While penetration testing can identify vulnerabilities and potential risks, it does not provide a clear indication of whether specific risk-reducing controls should be implemented.

Frequent risk assessment programs (option C) are essential to identify and evaluate potential risks to an organization. However, they do not provide a clear indication of whether specific risk-reducing controls should be implemented.

Annual loss expectancy (ALE) calculation (option D) is a calculation used to estimate the expected cost of a security incident. While ALE can be useful in assessing the potential costs of a security incident, it does not provide a clear indication of whether specific risk-reducing controls should be implemented.

In summary, the technique that most clearly indicates whether specific risk-reduction controls should be implemented is countermeasure cost-benefit analysis. It is a process that evaluates the potential costs and benefits of implementing a risk-reducing control and helps decision-makers to determine if the expected benefits of a countermeasure justify its costs.