Isaca CISM Exam Dumps & Practice Test Questions

Question 1:

What is the main purpose of performing an information security risk analysis in an organization?

A. To verify that the infrastructure has proper access controls in place.
B. To enable cost-effective decisions about which assets require protection.
C. To decide the budget allocation for security initiatives.
D. To ensure the deployment of suitable security technologies.

Answer: B

Explanation:

An information security risk analysis is a critical process that helps organizations identify, evaluate, and prioritize threats to their information assets. Its fundamental objective is to guide decision-making about how best to protect those assets while managing costs effectively. By assessing the probability and potential impact of various risks, the organization gains a clear picture of where its most significant vulnerabilities and exposures lie.

The correct answer, B, reflects the core outcome of risk analysis: enabling organizations to make informed and cost-efficient choices regarding the protection of assets. Not every asset can or should receive the same level of security due to budget and resource constraints. Risk analysis helps prioritize efforts to focus on safeguarding the most critical or vulnerable components, maximizing the return on security investments.

Other options, although related to security, do not fully capture the primary goal:

• A relates to access control, which is an important security measure but only one element within a broader risk management strategy.

• C addresses funding allocation, which typically follows risk analysis, as organizations allocate resources based on identified risks and priorities.

• D concerns the implementation of security technologies, which is a subsequent step based on the analysis results.

In practice, risk analysis involves identifying risks, estimating their impact, and balancing the cost of mitigation against the value of the assets. This structured approach prevents organizations from overinvesting in unnecessary protections or neglecting critical vulnerabilities. Ultimately, it leads to a more efficient, strategic allocation of resources, enhancing the overall security posture without excessive spending.

Question 2:

Why should local security regulations sometimes override a multinational company’s global security policies?

A. Because local business managers define objectives best suited for their regions.
B. Because it is simpler to educate staff on local laws than on global policies.
C. Because global policies might impose unnecessary controls on local units.
D. Because legal requirements from local regulations take precedence over global policies.

Answer: D

Explanation:

Multinational organizations operate in multiple jurisdictions, each with its own legal and regulatory environment. While global security policies aim to establish consistent security standards across all business units, they must coexist with local laws that may impose stricter or different requirements. In cases where local regulations conflict with global policies, local legal mandates take precedence because compliance with law is mandatory.

The correct answer, D, highlights the fundamental principle that legal compliance is non-negotiable. Ignoring local regulations can lead to severe consequences, including legal penalties, fines, or damage to the company’s reputation. For example, regulations like the European Union’s GDPR mandate specific privacy protections that must be followed by any organization processing personal data in the EU, regardless of its global policies.

While other options suggest practical or business reasons, they do not address the overriding importance of legal compliance:

• A notes local managers define objectives, but business goals cannot override legal requirements.

• B argues for ease of training on local laws, which is a convenience issue, not a legal justification.

• C mentions global policies may be overly restrictive locally, but even if global policies are cumbersome, local law still governs compliance.

Therefore, multinational companies must design flexible global security frameworks that accommodate local regulations. When discrepancies arise, adherence to local law ensures lawful operation and avoids regulatory sanctions. This approach balances uniform security governance with respect for jurisdictional legal mandates.

Question 3:

When faced with a new regulatory requirement, what should an information security manager do first to understand its effect on current security controls?

A. Conduct a cost-benefit analysis.
B. Perform a risk assessment.
C. Interview senior management.
D. Carry out a gap analysis.

Answer: B

Explanation:

When a new regulation is introduced, an information security manager’s immediate priority is to assess how this change impacts the organization’s information security posture. The first and most crucial step in this evaluation is conducting a risk assessment. This structured process helps identify potential threats and vulnerabilities introduced by the regulatory change and evaluates their possible impact on the organization.

Choosing B is correct because a risk assessment provides a clear understanding of how the new regulation influences the security environment. It pinpoints areas where the organization may be exposed to increased risk due to non-compliance or where existing controls may be insufficient. This insight allows the manager to prioritize mitigation efforts and resource allocation effectively.

Other steps, while important, come later in the process:

• A (Cost-benefit analysis) helps in deciding if and how to implement changes financially, but it is only useful after risks are identified.

• C (Interviewing senior management) is important for aligning strategy and gaining support but does not provide the technical risk insights necessary at the start.

• D (Gap analysis) identifies differences between current and required controls but should follow the risk assessment to focus on the most critical gaps.

In summary, the risk assessment ensures that any regulatory changes are thoroughly understood in terms of their security implications. This foundational step enables informed decision-making and the development of an effective compliance and security strategy, minimizing risks and ensuring the organization meets new regulatory demands without unnecessary disruption.

Question 4:

When an organization decides to shift its business strategy, which process should be employed to review the effectiveness of current information security controls and identify whether new controls are necessary?

A. Access control management
B. Change management
C. Configuration management
D. Risk management

Answer: D

Explanation:

When an organization changes its business strategy, it introduces new objectives, operational models, or market conditions that can impact its security landscape. To ensure the information security framework remains effective under these new circumstances, it is essential to assess the adequacy of existing security controls. This evaluation process is best handled through risk management.

Risk management is a systematic approach to identifying, assessing, and mitigating risks that threaten organizational assets, including information systems. It involves analyzing how strategic changes influence potential threats and vulnerabilities, determining if current controls still mitigate those risks, and deciding if new or adjusted controls are necessary. This ensures the security posture aligns with the evolving business goals and compliance needs.

The other options do not fully encompass this strategic evaluation. Access control management (A) deals primarily with managing permissions and user access, which is just one part of the security landscape. Change management (B) focuses on managing alterations to IT infrastructure and systems but does not include risk assessment related to security controls. Configuration management (C) ensures systems remain in a known, secure state but lacks the comprehensive risk assessment perspective required during strategic shifts.

In summary, risk management provides a holistic framework to analyze the implications of business strategy changes on security controls. It enables organizations to proactively address emerging risks and ensure that controls remain effective, thus maintaining a secure and compliant environment amid evolving business priorities.

Question 5:

What is the most effective approach to foster a culture of risk awareness across an organization?

A. Regularly update risk awareness messages.
B. Communicate threats promptly to all employees.
C. Periodically test compliance with security policies and share results.
D. Create incentives and establish a formal channel for employees to report risks.

Answer: D

Explanation:

Establishing a risk-aware culture means embedding risk consciousness into everyday behaviors and decisions at all levels of the organization. The most effective way to build such a culture is to create mechanisms that actively involve employees in risk identification and reporting, coupled with incentives that motivate participation. This approach empowers staff to take ownership of security and risk management, making it a collective responsibility rather than a siloed function.

Providing a dedicated channel for reporting risks encourages open communication about vulnerabilities or suspicious activities without fear of reprisal. When employees feel safe and motivated through incentives (such as recognition, rewards, or career development opportunities), they are more likely to be vigilant and proactive. This leads to earlier detection of issues, improved security posture, and a stronger, shared security mindset.

While periodically changing risk messages (A) can help maintain awareness, it often becomes background noise without active engagement. Prompt communication of threats (B) is necessary but only addresses reactive awareness. Regular compliance testing and sharing results (C) ensure controls are followed but may not foster proactive risk behavior or reporting.

In conclusion, combining an accessible reporting channel with meaningful incentives creates a dynamic and sustainable risk-aware culture. This empowers employees to be the first line of defense, turning risk management into a collaborative, organization-wide effort that strengthens overall security resilience.

Question 6:

If an information security manager discovers that an existing contract with a third-party vendor lacks clear data protection requirements, what is the best immediate action to take?

A. Terminate the outsourcing contract.
B. Transfer the risk responsibility to the vendor.
C. Draft and add a contract addendum specifying data protection obligations.
D. Conduct an external audit of the vendor’s data center.

Answer: C

Explanation:

When a contract with a third-party vendor is missing explicit clauses about protecting critical organizational data, the most effective and practical response is to create a contract addendum. This addendum should clearly outline the security requirements the vendor must follow, including data confidentiality, access controls, breach notifications, and compliance with applicable standards.

An addendum provides a legally binding document that fills the gaps without requiring a complete contract renegotiation or termination, which could disrupt business operations and increase costs. It also establishes clear expectations and accountability, ensuring both parties understand their responsibilities toward safeguarding sensitive information.

Option A, terminating the contract, is a drastic measure that can cause operational interruptions and incur replacement costs, so it should be a last resort, not a first step. Option B, transferring risk to the vendor, while important from a contractual and insurance standpoint, does not eliminate the organization’s accountability for data security and does not address the lack of specific contractual controls. Option D, initiating an external audit, might help assess current security practices but doesn’t resolve the immediate issue of lacking formal contractual obligations.

Overall, drafting a contract addendum is the most balanced and effective approach, enabling the organization to maintain the vendor relationship while strengthening data protection requirements and ensuring regulatory compliance.

Question 7:

An organization is planning to deploy a Security Information and Event Management (SIEM) system. 

What is the most critical factor the organization should evaluate before implementing the SIEM solution?

A. Controls to be monitored
B. Reporting capabilities
C. The contract with the SIEM vendor
D. Available technical support

Correct Answer: A

Explanation:

When deploying a Security Information and Event Management (SIEM) system, the foremost consideration should be identifying the specific security controls that need monitoring. SIEM solutions collect, aggregate, and analyze security event data from various sources across the IT environment. However, the success of a SIEM deployment hinges on monitoring the right controls that reflect the organization’s unique security risks and priorities.

Controls to be monitored could include network traffic, user access controls, firewall logs, intrusion detection systems, or endpoint protection events. Knowing which of these controls are critical allows the SIEM tool to focus on relevant data, enabling early detection of anomalies, threats, or policy violations. Without this clarity, the SIEM may produce excessive irrelevant data, overwhelming analysts or missing key security incidents.

While other factors like reporting capabilities are important—they enable teams to interpret and act on collected data—they are secondary to initially defining what needs monitoring. A system that reports well but lacks focus on critical controls risks delivering meaningless insights.

Similarly, the contract with the SIEM vendor is essential for service guarantees, updates, and support, but it does not directly affect the tool’s ability to detect threats. Likewise, technical support ensures smooth operation after deployment but cannot compensate for poor initial configuration or unclear monitoring priorities.

In essence, clearly determining the controls to monitor is foundational for tailoring the SIEM to the organization's environment, ensuring efficient threat detection and meaningful incident response. This step maximizes the SIEM’s value and strengthens the organization's overall security posture by focusing resources on protecting the most critical assets and systems.

Question 8:

Which element is most likely to be included in an enterprise-wide security policy?

A. Definitions of responsibilities
B. Retention schedules
C. System access specifications
D. Organizational risk

Correct Answer: A

Explanation:

An enterprise security policy establishes the overarching rules and expectations for protecting an organization’s information and technology assets. The most essential component of such a policy is the clear definition of responsibilities related to security roles and duties.

By outlining who is responsible for what, the policy ensures that every employee, contractor, or stakeholder understands their specific obligations. This could include responsibilities for data protection, monitoring, incident reporting, compliance, or access control. Clear role definitions foster accountability, which is crucial for enforcing security practices and responding effectively to incidents.

Without explicitly defined responsibilities, an organization risks confusion about who should act in various security scenarios, weakening its defense mechanisms and increasing vulnerability to breaches.

The other options, while important in broader governance, are less likely to appear within the general security policy itself:

• Retention schedules pertain to data lifecycle and storage duration, often governed by records management or data retention policies rather than security policies.

• System access specifications detail permissions and access levels but are usually managed through dedicated access control policies or operational procedures.

• Organizational risk is a high-level concept typically addressed in enterprise risk management frameworks, not in the security policy document that focuses on operational security guidelines.

Therefore, the inclusion of well-defined responsibilities ensures the security policy is actionable and enforceable. It serves as the backbone for a coherent security program where roles and expectations are clear, enabling the organization to maintain a robust security posture.

Question 9:

When a legacy application fails to meet regulatory compliance, but the business unit lacks the budget to fix the issue, what should the information security manager do first?

A. Build a business case to secure funds for remediation
B. Recommend to leadership that the risk of noncompliance be accepted
C. Inform legal and internal audit teams about the compliance failure
D. Evaluate the impact of noncompliance compared to the cost of fixing it

Answer: D

Explanation:

In scenarios where a legacy system does not comply with regulatory standards, yet funding for remediation is unavailable, the information security manager must take a thoughtful, prioritized approach. The first and most crucial action is to evaluate the potential consequences of noncompliance against the expenses involved in remediation. This assessment lays the foundation for all subsequent decisions.

By conducting this evaluation, the manager gains insight into the risks and impacts associated with continuing to operate a noncompliant system. These risks might include financial penalties, legal liabilities, reputational harm, and operational disruptions. On the other side of the equation is the cost of remediation, which could involve software upgrades, system replacement, labor costs, or even business process changes.

This step is essential because it creates a clear picture of whether the cost of remediation is justified by the risks of noncompliance, or if alternative risk management strategies should be considered. Without this understanding, actions such as pushing for budget allocation or accepting the risk outright would be premature and might not align with organizational priorities or regulatory obligations.

Looking at the other options:

• Building a business case (A) is an important next step but relies on a thorough risk-cost assessment to justify investment.

• Advising leadership to accept the risk (B) could be necessary, but it should only follow a clear understanding of the risks and consequences.

• Notifying legal and audit teams (C) is important for transparency and compliance but is more effective once the scope and severity of the problem are assessed.

Ultimately, by first assessing the trade-offs between risk and cost, the security manager ensures decisions are informed, measured, and aligned with business realities and compliance requirements.

Question 10:

What is the most effective way to incorporate security considerations when negotiating contracts with third-party vendors?

A. Have the organization’s legal team review the third-party contract
B. Share the company’s security policies with the vendor
C. Include security representatives early in the procurement process
D. Perform an information security audit of the third-party vendor

Answer: C

Explanation:

When engaging with third-party vendors, addressing security concerns proactively during contract negotiations is vital to safeguarding organizational assets and data. The best practice is to ensure that security experts are involved from the outset of the procurement process.

This early involvement enables the security team to actively participate in shaping the requirements and expectations embedded in the contract. It facilitates identifying potential security risks before agreements are finalized, allowing for the inclusion of key security provisions such as data protection measures, breach notification protocols, encryption standards, and incident response responsibilities. Early security input also helps prevent costly contract amendments later in the process and reduces the risk of vulnerabilities stemming from ambiguous or missing security terms.

Although other actions contribute to a robust security posture, they are less effective if security is not integrated upfront:

• Having legal review the contract (A) is critical but most effective when informed by the security team’s risk assessment and input.

• Communicating security policies to the vendor (B) helps with compliance but usually comes after formal security requirements are negotiated and incorporated.

• Conducting a security audit of the vendor (D) is a valuable step post-selection to verify security controls, but it does not replace the need for security’s early role in contract negotiations.

By embedding security within the procurement process, organizations reduce exposure to security threats and ensure vendors are contractually obligated to meet security standards. This holistic, proactive approach to vendor security ensures that security is not an afterthought but a foundational component of third-party relationships.