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CISM Practice Question: A financial institution is integrating a newly…

A financial institution is integrating a newly acquired fintech startup. The startup has a very different security culture. What governance approach best ensures integration without stifling innovation?

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

Use a transitional risk-based approach, phasing in critical controls while allowing flexibility

A transitional risk-based approach balances control with flexibility, allowing the fintech startup to maintain some of its innovative security practices while gradually aligning with the institution's critical controls. Option A is incorrect because indefinitely allowing the startup to maintain its own policies creates ongoing security gaps and governance inconsistency. Option B is incorrect because forcing immediate adoption of all policies would likely stifle innovation and cause resistance, potentially harming the startup's culture. Option D is incorrect because creating a separate security team can lead to silos and undermines unified governance. The transitional approach minimizes disruption while ensuring essential compliance.

Answer analysis

Option-by-option breakdown

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

  • Allow the startup to maintain its own security policies indefinitely

    Why it's wrong here

    This preserves inconsistency and governance gaps.

  • Force the startup to adopt all of the institution's policies immediately

    Why it's wrong here

    This may disrupt the startup's agility and cause cultural clash.

  • Use a transitional risk-based approach, phasing in critical controls while allowing flexibility

    Why this is correct

    This method ensures security while respecting the startup's culture and innovation.

  • Create a separate security team for the startup

    Why it's wrong here

    This does not foster integration and may increase costs.

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.