Courseiva

CISM Information Security Governance Practice Question

A company is developing a business case for a new security tool. Which metric best demonstrates the value of the investment?

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

✓

Security investment vs. loss avoidance

Comparing security investment to potential loss avoidance quantifies ROI in business terms.

Answer analysis

Option-by-option breakdown

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

  • ✗

    Number of security incidents

    Why it's wrong here

    Incident counts measure the existing threat landscape and detection volume, not the tool's contribution; a rising count could even indicate improved detection. It is tempting as a baseline security metric, but a business case needs risk reduction or cost avoidance, such as expected losses prevented, to demonstrate investment value.

  • ✗

    Percentage of budget spent on security

    Why it's wrong here

    Budget percentage is an input or efficiency measure, showing spend allocation rather than value delivered; spending more on security does not itself demonstrate benefit. It is tempting because it is easy to calculate, but a business case requires quantified risk reduction or avoided loss attributable to the tool.

  • ✓

    Security investment vs. loss avoidance

    Why this is correct

    Comparing the proposed spend against projected loss avoidance expresses security value in financial terms the business case requires. It satisfies the investment-justification constraint by demonstrating that the tool reduces expected loss exposure more than it costs.

  • ✗

    Time to implement the tool

    Why it's wrong here

    Implementation time measures delivery effort, not the security or financial benefit realised after deployment. It is tempting because project schedules are visible and easy to report, but a business case must show value through reduced risk exposure or cost avoidance, not how quickly the tool was rolled out.

About these practice questions

One of 924 original CISM practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →

How Courseiva writes practice questions · Editorial policy

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.