- A
Data residency and regulatory compliance requirements across different jurisdictions.
Data may be stored in different countries, raising compliance issues.
- B
Potential supply chain risks if the cloud provider uses third-party services or subcontractors.
Supply chain attacks (e.g., SolarWinds) are a key emerging risk in cloud adoption.
- C
The organization's ability to patch operating systems in the cloud environment.
Why wrong: Patching is typically the cloud provider's responsibility under the shared responsibility model.
- D
Physical security controls at the cloud provider's data centers.
Why wrong: Physical security is the provider's responsibility; customers rely on certifications like SOC 2.
- E
Shared responsibility model and understanding the division of security controls between the organization and the provider.
Misunderstanding the shared responsibility model can lead to security gaps.
CISM Information Security Risk Management Practice Question
This CISM practice question tests your understanding of information security risk management. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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.
An organization is implementing a new cloud-based ERP system. As part of the emerging risk assessment, the information security manager needs to identify potential risks associated with the cloud migration. Which THREE of the following should be considered as part of the emerging risk assessment for cloud adoption?
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
Data residency and regulatory compliance requirements across different jurisdictions.
Data residency and regulatory compliance requirements are critical in cloud adoption because data may be stored or processed in jurisdictions with different privacy laws (e.g., GDPR, CCPA, LGPD). An emerging risk assessment must evaluate whether the cloud provider's data centers are located in regions that could expose the organization to legal penalties or breach of contractual obligations. This is not a generic concern but a specific legal and technical risk tied to the physical location of cloud infrastructure.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Data residency and regulatory compliance requirements across different jurisdictions.
Why this is correct
Data may be stored in different countries, raising compliance issues.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Potential supply chain risks if the cloud provider uses third-party services or subcontractors.
Why this is correct
Supply chain attacks (e.g., SolarWinds) are a key emerging risk in cloud adoption.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
The organization's ability to patch operating systems in the cloud environment.
Why it's wrong here
Patching is typically the cloud provider's responsibility under the shared responsibility model.
- ✗
Physical security controls at the cloud provider's data centers.
Why it's wrong here
Physical security is the provider's responsibility; customers rely on certifications like SOC 2.
- ✓
Shared responsibility model and understanding the division of security controls between the organization and the provider.
Why this is correct
Misunderstanding the shared responsibility model can lead to security gaps.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Cisco often tests the distinction between operational risks (like patching) and emerging risks (like regulatory or supply chain changes), leading candidates to select patching as a cloud-specific risk when it is actually a routine operational task that the organization already manages.
Detailed technical explanation
How to think about this question
The shared responsibility model (Option E) is foundational: the cloud provider secures the infrastructure (physical security, network, hypervisor), while the customer secures the OS, applications, and data. Emerging risk assessments focus on new or changing risks, such as multi-jurisdictional data flows (Option A) and supply chain dependencies (Option B) where subcontractors (e.g., third-party CDNs or backup providers) may introduce vulnerabilities or compliance gaps. Real-world examples include a cloud provider using a sub-processor in a country with weak data protection laws, creating unforeseen regulatory exposure.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A practitioner preparing for the CISM exam encounters this exact type of scenario on the job. The correct answer here is not the most general option — it is the best answer for the specific constraint described. Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option. Real exam questions reward reading the full scenario before eliminating options, because the constraint defines which answer fits.
What to study next
Got this wrong? Here's your next step.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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FAQ
Questions learners often ask
What does this CISM question test?
Information Security Risk Management — This question tests Information Security Risk Management — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Data residency and regulatory compliance requirements across different jurisdictions. — Data residency and regulatory compliance requirements are critical in cloud adoption because data may be stored or processed in jurisdictions with different privacy laws (e.g., GDPR, CCPA, LGPD). An emerging risk assessment must evaluate whether the cloud provider's data centers are located in regions that could expose the organization to legal penalties or breach of contractual obligations. This is not a generic concern but a specific legal and technical risk tied to the physical location of cloud infrastructure.
What should I do if I get this CISM question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jul 4, 2026
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.
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