easyMultiple ChoiceObjective-mapped
CISA Practice Question: A financial institution is implementing a data…
A financial institution is implementing a data classification policy. Which of the following is the most important factor in determining the classification level of a data asset?
⚠ Common exam trap
It's easy for candidates to confuse operational attributes (cost, format, location) with the foundational risk-based criteria (sensitivity and criticality) that actually define classification levels in information security governance.
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
✓
The sensitivity and criticality to business operations
The classification level of a data asset is determined by its sensitivity and criticality to business operations because these factors directly drive the required confidentiality, integrity, and availability controls. For example, personally identifiable information (PII) or financial transaction records require higher classification due to regulatory mandates (e.g., GDPR, PCI DSS) and the potential for severe business impact if compromised. Cost, format, or location are secondary attributes that do not inherently define the risk profile or protection needs of the data.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
The sensitivity and criticality to business operations
Why this is correct
Correct. Sensitivity and criticality determine the required level of protection.
- ✗
The cost of acquiring the data
Why it's wrong here
Acquisition cost is not a primary factor; classification focuses on impact if compromised.
- ✗
The format of the data (structured vs unstructured)
Why it's wrong here
Format may influence handling but is not the primary factor for classification.
- ✗
The storage location of the data
Why it's wrong here
Storage location may affect controls but does not define classification level.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This CISA practice question is part of Courseiva's free ISACA certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the CISA exam.