Module 1 - Unit 6 Risk Response And Risk Treatment

Question 1

Define cyber risk

Answer 1

Any risk of financial loss, disruption or damage to the reputation of an organisation from some sort of failure of its information technology systems.

Question 2

Define Risk Treatment

Answer 2

The process of selecting and implementing of measures to modify risk. Risk treatment measures can include avoiding, optimizing, transferring or retaining risk.

Question 3

What are the 4 T’s?

Answer 3

Risk strategies for threats or hazard risks.
Tolerate hazard risk if the severity is less than the risk appetite and tolerate low severity risk and long as they are not too frequent
Treat risk by retaining it in the organisation and taking action to modify its severity, likelihood or impact.
Transfer risk exposure to a third party
Terminate if the residual risk remain too high

Question 4

What are the 4 E’s?

Answer 4

Are response strategies for opportunities risk.
Explore entreprenorial opportunities
Exist declining markets
Exploit opportunities until competitors arrive
Exit the opportunity through a successful and profitable sale

Question 5

What are the 4 risk control techniques? (PCDD)

Answer 5

Preventative - to prevent a transaction (TERMINATE)
Corrective - used when the preventative controls fail (TREAT)
Directive - based on giving directions (TRANSFER)
Detective - include fire alarma or an audit review (TOLERATE)

Question 6

What are the 5 C’s of Credit Risk?

Answer 6

Character - the reputation of a company
Capital - how the company is currently financed
Conditions - where the company operates
Capacity - of the company to repay the loan
Collateral - assets the bank can claim if the company could not repay the loan

Question 7

What are the 5 components of BCP?

Answer 7

Prepare - for emergency
Prepare - crisis
Manage - crisis and minimise damage
Recover
Respond effectively.

Question 8

7 functions that can be outsourced

Answer 8

IT
ADMINISTRATION
DISTRIBUTION AND LOGISTICS
HR
CALL CENTRES
SALES AND MARKETING
REAL ESTATE MANAGEMENT

Question 9

5 reasons for outsourcing

Answer 9

1. Streamline operations
2. Cost control
3. Freeing up resources for other work
4. Improving quality and service
5. Resources not available internally

Question 10

5 cyber risk controls:

Answer 10

Identify benefits of cyber security
Good communication
Identify critical information assets
Develop multiple layers of defence
Develop controls that detect attacks quickly