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Information Security GovernancehardMultiple ChoiceObjective-mapped

CISM Information Security Governance Practice Question

A CISO is building a business case for a new security tool. Which approach BEST articulates the return on investment (ROI) to the board?

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

Risk reduction value minus total cost of ownership

Risk reduction value quantifies the expected reduction in loss, which directly ties to business value.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Total cost of ownership (TCO) compared to competitors

    Why it's wrong here

    TCO alone does not show value.

  • Risk reduction value minus total cost of ownership

    Why this is correct

    This shows net benefit (ROI) by comparing risk reduction to cost.

  • Compliance with industry standards

    Why it's wrong here

    Compliance is a checkbox, not a financial ROI.

  • Number of alerts the tool will generate

    Why it's wrong here

    More alerts do not necessarily mean better security or ROI.

About these practice questions

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JA

Written by Johnson Ajibi, MSc IT Security

Senior Network & Security Engineer · founder of Courseiva

This CISM 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 CISM exam.