hardmultiple choiceObjective-mapped

Exhibit

Risk register excerpt for the public payment API
Current estimated annual loss expectancy without additional controls: $260,000

Option A: Tighten change approvals and require admin MFA
Control cost: $40,000
Residual annual loss expectancy: $160,000

Option B: Implement active-active failover between regions
Control cost: $120,000
Residual annual loss expectancy: $40,000

Option C: Purchase cyber insurance for the service
Control cost: $25,000
Residual annual loss expectancy: $220,000

Option D: Add manual fallback processing and user training
Control cost: $10,000
Residual annual loss expectancy: $210,000

Based on the exhibit, which control option provides the greatest net annual financial benefit for the organization?

Question 1hardmultiple choice
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Based on the exhibit, which control option provides the greatest net annual financial benefit for the organization?

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.

A

Distractor review

Option A, because it reduces loss enough to justify the control cost better than the smaller controls.

Option A is effective, but its savings are smaller than Option B's savings once cost is included.

B

Best answer

Option B, because its large reduction in annual loss outweighs the higher implementation cost.

Option B reduces annual loss expectancy from $260,000 to $40,000, creating $220,000 in annual savings before cost. After subtracting the $120,000 control cost, it still delivers the highest net benefit among the choices. Quantitative risk decisions should compare expected loss reduction against implementation cost, and this option provides the strongest financial return.

C

Distractor review

Option C, because transferring the risk is always cheaper than engineering a technical fix.

Insurance transfers some financial impact, but the residual annual loss remains high and the overall benefit is much lower.

D

Distractor review

Option D, because low upfront cost makes it the most economical option regardless of residual loss.

Option D is cheap, but it barely reduces the expected annual loss, so its net benefit is far below the better controls.

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.

Related practice questions

Related SY0-701 practice-question pages

Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.

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.

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: Option B, because its large reduction in annual loss outweighs the higher implementation cost. — Option B is the strongest quantitative choice because it produces the greatest annual loss reduction relative to cost. The organization starts at an ALE of $260,000 and ends with $40,000 under that option, so the expected savings are $220,000. After the $120,000 implementation cost, the net benefit remains the highest. Quantitative risk treatment should favor the option with the best financial value, not merely the lowest purchase price. Why others are wrong: Option A provides meaningful mitigation, but its net benefit is smaller than Option B. Option C transfers some risk, yet the residual loss is still high and the savings are minimal. Option D is inexpensive, but low cost does not make it the best value when expected loss remains largely unchanged.

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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