CISM Information Security Risk Management Practice Question
A small accounting firm with 50 employees recently suffered a ransomware attack that encrypted all client data on its file server. The firm had no backup strategy, and the attackers demanded a ransom for decryption. The firm paid the ransom, but many clients left due to loss of trust. The firm’s owner has now hired you as a part-time risk manager. Your first task is to develop a risk management program. What is the most appropriate initial step?
⚠ Common exam trap
The CISM framework emphasizes that risk management must begin with identification (risk assessment) before any treatment (mitigation, transfer, or acceptance). The trap here is that candidates jump to a technical fix (backups) or a financial fix (insurance) without first understanding the full scope of risks.
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
✓
Conduct a risk assessment to identify assets, threats, and vulnerabilities
The first step in developing a risk management program, per the CISM framework, is to conduct a risk assessment. This identifies the specific assets (e.g., client data on the file server), threats (e.g., ransomware), and vulnerabilities (e.g., lack of backups, weak access controls) that led to the incident. Without this foundational analysis, any subsequent controls—such as backups or insurance—would be misaligned with the firm's actual risk profile, potentially wasting resources on ineffective measures.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Purchase a comprehensive cyber insurance policy
Why it's wrong here
Incorrect; insurance should be based on risk assessment results.
- ✗
Fire the IT staff responsible for the security failures
Why it's wrong here
Incorrect; this does not address systemic risk management gaps.
- ✓
Conduct a risk assessment to identify assets, threats, and vulnerabilities
Why this is correct
Correct; risk assessment is the first step to understand the risk landscape.
- ✗
Immediately implement a backup and disaster recovery solution
Why it's wrong here
Incorrect; while important, it should be part of a broader risk treatment plan based on 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.