CISSP Security and Risk Management Practice Test 1 — 15 Questions

Question 1

A multinational corporation is expanding its operations into a new country with strict data protection laws. The company needs to ensure compliance while maintaining operational efficiency. Which of the following is the BEST approach to manage this risk?

Accepted Answer

Adopt a privacy-by-design framework and conduct a Data Protection Impact Assessment (DPIA) before launching operations.. Option D is correct because a privacy-by-design framework ensures data protection is embedded into systems and processes from the outset, while a Data Protection Impact Assessment (DPIA) systematically identifies and mitigates privacy risks specific to the new jurisdiction. This proactive, risk-based approach aligns with regulatory requirements like the GDPR and demonstrates due diligence, reducing the likelihood of non-compliance and operational disruption.

Answer

Accept the risk of non-compliance as a cost of doing business and set aside a contingency fund for fines.

Answer

Assign legal counsel to review local laws and implement a one-time compliance checklist.

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Create a uniform global privacy policy that satisfies all jurisdictions with minimal adjustments.

Question 2

A company's security team discovers that an employee inadvertently shared sensitive customer data via a public cloud storage link. The incident response team contains the breach and notifies affected customers. Which of the following risk management strategies would BEST prevent recurrence?

Accepted Answer

Deploy a Data Loss Prevention (DLP) solution that monitors and controls sharing of sensitive data.. Option C is correct because a Data Loss Prevention (DLP) solution provides automated, policy-based monitoring and control of sensitive data being shared via public cloud storage links. Unlike awareness training (which relies on human behavior) or blanket blocking (which hinders productivity), DLP can inspect content in real time using pattern matching, fingerprinting, or exact data matching to prevent unauthorized sharing before it occurs, directly addressing the root cause of inadvertent exposure.

Answer

Block all access to public cloud storage services from corporate devices.

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Implement mandatory security awareness training focusing on data handling procedures.

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Encrypt all sensitive data at rest and in transit to render shared data useless.

Question 3

A small business wants to implement a security policy that balances protection with usability. Which of the following is the MOST important factor when developing the policy?

Accepted Answer

Aligning the policy with business objectives and risk appetite.. Option B is correct because a security policy must be aligned with the organization's business objectives and risk appetite to ensure it supports operations without imposing unnecessary restrictions. For a small business, this balance is critical—overly strict controls can hinder productivity, while weak controls increase risk. The policy should reflect the specific threats and tolerances of the business, not generic templates or compliance-only checklists.

Answer

Adopting a template from a similar organization to save time.

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Ensuring the policy is enforceable with technical controls.

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Basing the policy solely on regulatory compliance requirements.

Question 4

During a risk assessment, a company identifies that its primary data center is located in a flood-prone area. The estimated annual loss expectancy (ALE) for a flood event is $500,000. Installing flood barriers costs $200,000 and reduces the ALE to $50,000. What is the net benefit of implementing the flood barriers?

Accepted Answer

$250,000. The net benefit is calculated as the reduction in ALE minus the cost of the control. The original ALE is $500,000, and after implementing flood barriers the ALE drops to $50,000, a reduction of $450,000. Subtracting the $200,000 cost of the barriers yields a net benefit of $250,000. This aligns with the CISSP risk management formula: Net Benefit = (ALE_old - ALE_new) - Cost_of_control.

Answer

$300,000

Answer

$450,000

Answer

$200,000

Question 5

An organization is developing a business continuity plan (BCP) for its critical IT systems. Which of the following is the FIRST step in the BCP process?

Accepted Answer

Conduct a business impact analysis (BIA) to prioritize critical business functions.. The first step in the BCP process is to conduct a Business Impact Analysis (BIA) to identify and prioritize critical business functions and their dependencies. Without the BIA, you cannot determine which systems require recovery strategies or what recovery time objectives (RTOs) and recovery point objectives (RPOs) are needed. The BIA provides the quantitative and qualitative basis for all subsequent BCP decisions.

Answer

Identify recovery strategies for critical systems.

Answer

Develop a testing schedule for the BCP.

Answer

Perform a risk assessment to identify potential threats.

Question 6

A security manager is tasked with classifying data based on its sensitivity. Which of the following is the PRIMARY reason for data classification?

Accepted Answer

To ensure appropriate protection measures are applied to data based on its value and sensitivity.. Data classification is the foundational process of assigning a sensitivity label (e.g., Public, Internal, Confidential, Restricted) to information assets. The primary reason is to ensure that appropriate security controls—such as encryption, access control lists (ACLs), and data loss prevention (DLP) policies—are applied proportionally to the data's value and sensitivity, aligning with the principle of defense in depth and risk management.

Answer

To satisfy regulatory requirements for data retention.

Answer

To facilitate data sharing across departments without restrictions.

Answer

To simplify the process of granting access to users.

Question 7

A company is considering outsourcing its customer support operations to a third-party vendor. Which of the following should be the PRIMARY risk management activity before finalizing the contract?

Accepted Answer

Conduct a thorough vendor risk assessment including security audits.. Before outsourcing critical operations, the primary risk management activity is to conduct a thorough vendor risk assessment, including security audits. This evaluates the vendor's security posture, compliance with standards (e.g., ISO 27001), and ability to protect sensitive customer data, directly addressing risks like data breaches or service disruptions before contractual obligations are locked in.

Answer

Negotiate a lower price to offset potential security investments.

Answer

Purchase cyber liability insurance to cover potential breaches.

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Require the vendor to sign a non-disclosure agreement (NDA).

Question 8

An organization needs to ensure that its employees understand their responsibilities regarding information security. Which of the following is the MOST effective way to achieve this?

Accepted Answer

Implement a security awareness program with regular training and assessments.. A security awareness program with regular training and assessments is the most effective way to ensure employees understand their responsibilities because it establishes a continuous learning cycle. Unlike one-time events, it reinforces secure behaviors through repetition, real-world scenarios, and measurable assessments, aligning with the NIST SP 800-50 framework for building a security-conscious culture.

Answer

Distribute a security policy document and require a signature.

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Conduct a one-time annual security briefing.

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Display security posters in common areas.

Question 9

Which TWO of the following are key components of an Information Security Governance framework? (Select exactly 2)

Accepted Answer

Risk management processes. Risk management processes are a core component of an Information Security Governance framework because they provide the structured methodology for identifying, assessing, and mitigating risks to the organization's information assets. This aligns with the ISO/IEC 27001 standard, which mandates a risk-based approach to establishing, implementing, and maintaining an information security management system (ISMS). Without formal risk management, governance lacks the data-driven foundation to prioritize security investments and controls.

Answer

Incident response team structure

Answer

Penetration testing schedule

Answer

Vendor contract negotiation

Question 10

Which THREE of the following are valid risk treatment options according to ISO 31000? (Select exactly 3)

Accepted Answer

Risk reduction. ISO 31000 defines risk treatment options as risk avoidance, risk reduction, risk transfer, and risk retention. Risk reduction (option C) is a valid treatment that involves implementing controls to lower the likelihood or impact of a risk, such as deploying firewalls or encryption to mitigate a security threat.

Answer

Risk retention

Answer

Risk review

Question 11

Which TWO of the following are examples of administrative controls? (Select exactly 2)

Accepted Answer

Security awareness training. Security awareness training (B) is an administrative control because it involves policies, procedures, and human behavior management to reduce risk. Background checks (E) are also administrative controls, as they are part of personnel security policies that vet employees before granting access. Both are documented in the organization's security policy framework and are not technical or physical mechanisms.

Answer

Firewall rules

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Security guards at entrances

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Encryption of data at rest

Question 12

A data classification policy is shown. A database contains a field labeled 'SSN' that matches the pattern for 'employee_id'. What action should be applied to the SSN field?

Accepted Answer

Mask. The SSN field matches the pattern for 'employee_id', indicating it contains sensitive personally identifiable information (PII). Masking is the appropriate action because it preserves the data format for operational use (e.g., testing, analytics) while irreversibly obscuring the actual values, reducing exposure risk without breaking referential integrity. Encryption would still allow authorized decryption, which is unnecessary for fields that only need pattern matching, and blocking would prevent legitimate access to the field entirely.

Answer

None

Answer

Encrypt

Answer

Block

Question 13

Based on the exhibit, what security control is being demonstrated?

Accepted Answer

Account lockout threshold. The exhibit shows a login attempt counter that increments with each failed authentication, and after a specific number of failures (e.g., 5), the account is locked for a defined period. This is the classic behavior of an account lockout threshold, which is a preventive security control that mitigates brute-force password guessing attacks by temporarily disabling the account after exceeding the allowed number of failed attempts.

Answer

Session timeout

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CAPTCHA implementation

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Input validation

Question 14

You are the CISO of a medium-sized healthcare organization that recently migrated patient records to a cloud-based EHR system. The system stores Protected Health Information (PHI) and is subject to HIPAA regulations. Three months after migration, the compliance team reports that the EHR vendor experienced a data breach exposing 5,000 patient records due to a misconfigured database. Your organization's contract with the vendor includes a clause that holds the vendor liable for breaches caused by their negligence. However, the vendor is refusing to pay the full cost of breach notification and credit monitoring, citing a limitation of liability clause that caps damages at $100,000. The actual costs are estimated at $500,000. Your organization's cyber insurance policy has a $250,000 deductible and covers losses up to $1 million, but excludes losses due to vendor negligence. You need to manage this risk effectively. Which of the following is the BEST course of action?

Accepted Answer

Initiate legal proceedings against the vendor to enforce the liability clause and recover costs.. Option D is the best course of action because the vendor's negligence caused the breach, and the contract explicitly holds the vendor liable for such incidents. Initiating legal proceedings to enforce the liability clause is the most direct way to recover the full $500,000 in costs, as the vendor's limitation of liability clause ($100,000 cap) may be challenged in court, especially given HIPAA's requirement for covered entities to ensure business associates safeguard PHI. This approach aligns with risk management principles by transferring the financial risk back to the responsible party, rather than accepting the loss or relying on insurance that explicitly excludes vendor negligence.

Answer

File a claim under your cyber insurance policy and pay the deductible to cover the costs.

Answer

Negotiate with the vendor to split the costs and update the contract to remove the liability cap.

Answer

Accept the loss and implement additional vendor oversight to prevent future incidents.

Question 15

You are the security manager for a financial services firm that processes credit card transactions. The company is required to comply with PCI DSS. During a recent internal audit, you discover that the network segmentation between the cardholder data environment (CDE) and the corporate network is not properly implemented. Specifically, a firewall rule allows unrestricted traffic from the corporate network to the CDE. This exposes sensitive cardholder data to potential unauthorized access. The IT manager argues that this rule is necessary for business operations because several applications need to access the CDE for reporting purposes. You need to address this risk while minimizing business disruption. Which of the following is the BEST course of action?

Accepted Answer

Implement a jump server that requires multi-factor authentication and logging for all access to the CDE, and restrict the rule to only allow traffic from the jump server.. Option D is correct because it enforces the principle of least privilege and secure access to the CDE without disrupting business operations. By implementing a jump server with multi-factor authentication and logging, you create a controlled, auditable gateway that restricts all corporate-to-CDE traffic to a single, hardened host. This satisfies PCI DSS requirement 1.3 (network segmentation) by reducing the attack surface while still allowing necessary reporting access.

Answer

Encrypt all cardholder data at rest so that even if accessed, it is protected.

Answer

Accept the risk because the corporate network is already protected by other controls.

Answer

Remove the firewall rule immediately to ensure compliance, then work with IT to find alternative solutions.