A security manager at a financial services company is proposing a new policy that would require annual background checks for all employees with access to sensitive customer payment data. The proposed policy, if implemented, would increase the organization's operational costs by approximately $200,000 per year. The manager needs to obtain formal approval to implement this policy. Which of the following groups is MOST likely to have the authority to approve this policy and allocate the necessary budget?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Best answer
Board of directors
The board of directors has the fiduciary responsibility and ultimate authority to approve significant policy changes that require a substantial budget allocation, such as a $200,000 annual expense for background checks. This is correct because the policy crosses functional areas (security, HR, finance) and requires formal governance approval.
Distractor review
Chief Information Security Officer (CISO)
While the CISO is the senior security leader and may champion the policy, the CISO typically does not have the sole authority to approve a multi-departmental policy that costs $200,000 and involves HR processes. The CISO would recommend the policy to higher governance bodies such as the board or executive committee.
Distractor review
IT steering committee
An IT steering committee usually prioritizes technology projects and IT investments, but this policy is an HR/security policy that affects all employees, not just IT. The committee lacks the authority to approve enterprise-wide human resources policies and budget increases of this magnitude.
Distractor review
Security operations team
The security operations team is responsible for day-to-day monitoring and incident response. They have no authority to approve policies or allocate budget. This option is clearly incorrect for a policy-level decision.
Common exam trap
Common exam trap: answer the scenario, not the keyword
Many certification questions include familiar terms but test a specific constraint. Read the exact wording before choosing an answer that is generally true but wrong for this case.
Technical deep dive
How to think about this question
This question should be treated as a scenario, not a definition check. Identify the problem, the constraint and the best action. Then compare each option against those facts.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
- Use explanations to understand the rule behind the answer.
TExam Day Tips
- Underline the problem statement mentally.
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
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More questions from this exam
Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
Question 1
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Question 2
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Question 3
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Question 4
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Question 5
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Question 6
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FAQ
Questions learners often ask
What does this SY0-701 question test?
Read the scenario before looking for a memorised answer.
What is the correct answer to this question?
The correct answer is: Board of directors — In a typical organizational governance structure, significant new policies that require substantial budget allocations and affect multiple departments are approved by a senior leadership body such as the board of directors or an executive steering committee. The security manager needs both policy authority and budget authority. The board of directors holds the ultimate fiduciary responsibility and has the power to approve major expenditures and changes to corporate policies. While a CISO or senior security leader may endorse the proposal, they do not have the final authority to allocate a $200,000 budget increase without approval from the board or an equivalent executive governance body. The IT steering committee might influence technical direction but typically does not approve enterprise-wide human resources policies. The security operations team has no role in approving policy or budget at this level.
What should I do if I get this SY0-701 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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