CAS-004 Governance, Risk, and Compliance Practice Question
A multinational financial services firm is preparing to adopt a new enterprise risk management approach. The CISO wants a quantitative method that expresses risk in monetary terms to prioritize investments. Which of the following should the CISO implement?
⚠ Common exam trap
Many exam-takers confuse comprehensive risk management frameworks with quantitative risk analysis methodologies that express risk in monetary terms.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Factor Analysis of Information Risk (FAIR)
The CISO needs a quantitative risk analysis method that expresses risk in monetary terms. FAIR is specifically designed to quantify risk in financial terms, enabling prioritization of investments based on potential monetary loss. Other options are either qualitative or framework-oriented without inherent financial quantification.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
NIST Risk Management Framework (RMF)
Why it's wrong here
The NIST RMF is a comprehensive process for integrating security and risk management activities into the system development life cycle. It is not inherently quantitative and does not express risk in monetary terms. While it provides a structured approach to categorizing and selecting controls, it does not offer the financial quantification that the CISO requires for investment prioritization.
- ✗
OCTAVE Allegro
Why it's wrong here
OCTAVE Allegro is a qualitative risk assessment method focused on identifying and analyzing risks to information assets. It uses relative scales rather than monetary values, making it unsuitable for expressing risk in financial terms. The CISO needs a quantitative method, and OCTAVE Allegro does not provide the monetary quantification required for prioritizing investments based on financial impact.
- ✓
Factor Analysis of Information Risk (FAIR)
Why this is correct
FAIR is a quantitative risk analysis framework that expresses risk in financial terms by modeling loss event frequency and loss magnitude. It enables the CISO to prioritize investments based on monetary impact, aligning with the goal of expressing risk in monetary terms. Unlike qualitative approaches, FAIR provides defensible, data-driven estimates for enterprise risk management.
- ✗
ISO/IEC 27005
Why it's wrong here
ISO/IEC 27005 provides guidelines for information security risk management but does not prescribe a specific quantitative methodology. It supports both qualitative and quantitative approaches but does not inherently express risk in monetary terms. The CISO requires a method that directly quantifies risk financially, which ISO/IEC 27005 does not offer as a standard feature.
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JA
Written and reviewed by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
Last reviewed September 2026 · checked against the official CompTIA exam blueprint
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