The answer is to implement encryption for all data in transit. This is correct because HIPAA’s Security Rule mandates technical safeguards to protect electronic protected health information (ePHI), and unencrypted transmission of patient records over the internet is a direct violation of the addressable implementation specification for encryption. In the context of risk treatment for regulatory compliance, encryption is the only action that both mitigates the identified vulnerability and satisfies the mandatory safeguard under HIPAA, whereas accepting the risk would breach legal obligations. On the CISM exam, this question tests your ability to distinguish between risk treatment options—avoidance, transfer, mitigation, and acceptance—within a regulatory framework. A common trap is confusing risk transfer (insurance) with risk mitigation, or overcorrecting with business disruption. Remember the mnemonic “CIA for HIPAA: Confidentiality requires encryption in transit and at rest.”
CISM Information Security Risk Management Practice Question
This CISM practice question tests your understanding of information security risk management. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A regional hospital is required to comply with the Health Insurance Portability and Accountability Act (HIPAA). During an internal audit, it was discovered that patient electronic health records (EHRs) are transmitted over the internet without encryption. The risk manager has been asked to recommend a risk treatment. Which action should be prioritized to address this finding?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Implement encryption for all data in transit
Option A is correct because implementing encryption for data in transit directly addresses the identified vulnerability and is a mandatory safeguard under HIPAA. Option B is incorrect because accepting this high-risk condition would likely violate regulatory requirements. Option C is overly drastic and would disrupt operations without addressing underlying security. Option D is incorrect because insurance does not reduce the risk of non-compliance.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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 encryption for all data in transit
Why this is correct
Correct; encryption is a standard control to protect data in transit.
Related concept
Static NAT maps one inside address to one outside address.
✗
Accept the risk because the likelihood of interception is low
Why it's wrong here
Incorrect; accepting this risk is not compliant with HIPAA.
✗
Purchase cyber insurance to cover potential data breach costs
Why it's wrong here
Incorrect; insurance does not eliminate the risk or ensure compliance.
✗
Discontinue all electronic transmission of patient data
Why it's wrong here
Incorrect; this is impractical and disrupts operations.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
Static NAT maps one inside address to one outside address.
PAT allows many inside hosts to share one public address using ports.
Inside local and inside global describe the private and translated addresses.
NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
→Identify inside and outside interfaces first.
→Check whether the scenario needs static NAT, dynamic NAT or PAT.
→Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
Real-world example
How this comes up in practice
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CISM NAT questions on configuration and troubleshooting.
Information Security Risk Management — This question tests Information Security Risk Management — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Implement encryption for all data in transit — Option A is correct because implementing encryption for data in transit directly addresses the identified vulnerability and is a mandatory safeguard under HIPAA. Option B is incorrect because accepting this high-risk condition would likely violate regulatory requirements. Option C is overly drastic and would disrupt operations without addressing underlying security. Option D is incorrect because insurance does not reduce the risk of non-compliance.
What should I do if I get this CISM question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related CISM NAT questions on configuration and troubleshooting.
What is the key concept behind this question?
Static NAT maps one inside address to one outside address.
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Question Discussion
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