hardMultiple Choice
CISM Practice Question: A multinational corporation is experiencing…
A multinational corporation is experiencing significant security incidents due to inconsistent security policies across subsidiaries. The CISO proposes implementing a centralized governance model. However, business unit leaders argue that local regulations require autonomy. Which approach best balances governance with local compliance?
⚠ Common exam trap
Test-takers frequently choose Option A, mistakenly believing that a single global policy is the only way to achieve consistency, without considering that local regulations may legally override corporate mandates.
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
✓
Develop a framework of minimum security requirements, allowing local augmentation
A framework of minimum security requirements establishes a baseline that satisfies corporate governance needs while explicitly allowing local business units to add controls to meet regional regulations (e.g., GDPR, PIPL). This approach preserves the principle of subsidiarity in governance, ensuring that local compliance obligations are met without fragmenting the overall security posture.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Implement a single global security policy with mandatory compliance
Why it's wrong here
A single mandatory global policy overrides subsidiary legal obligations, so it fails the local-regulation constraint. It is tempting because uniformity simplifies governance and works where one jurisdiction applies, but here it directly conflicts with mandated local compliance autonomy.
- ✗
Delegate all security decisions to local business units
Why it's wrong here
Delegating everything to business units recreates the fragmented policy landscape that caused the incidents, since no central authority sets baseline controls or enforces consistency. It appeals where subsidiaries genuinely operate under conflicting legal regimes and a federated model is mandated, but here it abandons the governance the CISO needs.
- ✓
Develop a framework of minimum security requirements, allowing local augmentation
Why this is correct
A minimum-requirements framework satisfies the stem's dual constraint: centralised governance consistency alongside subsidiary regulatory autonomy. Microsoft Entra ID conditional access policies can enforce baseline controls tenant-wide, while local teams augment with region-specific rules. This federated model preserves CISO oversight without breaching local compliance mandates, unlike rigid centralisation or unchecked decentralisation.
- ✗
Outsource security governance to a third-party managed service
Why it's wrong here
A managed service provider cannot resolve the underlying tension: accountability for policy remains with the corporation, and the provider still needs direction on which local regulations override central standards. Outsourcing suits organisations lacking internal security expertise, not one needing to reconcile governance with subsidiary compliance obligations.
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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.