CISM Information Security Risk Management Practice Question
A security manager is conducting a risk assessment for a new cloud-based system. The system will store sensitive customer data. Which of the following should be the FIRST step in the risk assessment process?
⚠ Common exam trap
A common mix-up: candidates confuse the order of risk assessment steps, mistakenly thinking that identifying threats (Option C) comes first because threats are the 'active' element, but CISM emphasizes that asset identification is the foundational step that drives all subsequent analysis.
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
✓
Identify and classify information assets
In the risk assessment process, the first step is to identify and classify information assets because you cannot assess risks to assets you haven't identified. For a cloud-based system storing sensitive customer data, this means cataloging data types (e.g., PII, financial records), their locations (e.g., specific cloud storage buckets), and their classification levels (e.g., confidential, restricted) before any threat or vulnerability analysis can be meaningfully performed.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Select appropriate security controls
Why it's wrong here
Controls are selected after risk is assessed.
- ✗
Conduct vulnerability scanning
Why it's wrong here
Vulnerability assessment occurs after assets and threats are defined.
- ✗
Identify potential threat sources
Why it's wrong here
Threat identification should follow asset identification.
- ✓
Identify and classify information assets
Why this is correct
Asset identification is foundational to any risk assessment.
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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.