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.
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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.