The Importance of Risk Management in Information Security

B.

A risk management program should minimize the amount of risk that cannot be otherwise eliminated or transferred; this is the residual risk to the organization.

Quantifying overall risk is important but not as critical as the end result.

Eliminating inherent risk is virtually impossible.

Maximizing the sum of all ALEs is actually the opposite of what is desirable.

The correct answer is B. minimize residual risk.

Explanation: Risk management is the process of identifying, assessing, and controlling risks that could have an adverse impact on an organization. The goal of a risk management program is to minimize the impact of potential risks on an organization's operations, assets, and reputation.

Quantifying overall risk (Answer A) is an important step in the risk management process, but it is not the most important function. Quantification helps to identify the extent and likelihood of potential risks, but it does not address how to mitigate those risks.

Eliminating inherent risk (Answer C) is not always possible, as some risks may be inherent to an organization's operations or industry. Instead, the focus should be on reducing the impact of those risks.

Maximizing the sum of all annualized loss expectancies (ALEs) (Answer D) is not an effective risk management strategy, as it ignores the potential for catastrophic events and does not consider the cost of implementing controls to reduce risks.

Minimizing residual risk (Answer B) is the most important function of a risk management program. Residual risk is the risk that remains after controls have been implemented. The goal is to reduce residual risk to an acceptable level by implementing cost-effective controls that balance the cost of the control against the potential impact of the risk. By minimizing residual risk, an organization can reduce the likelihood and impact of potential risks, protecting the organization's operations, assets, and reputation.