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CISM Is implementing a new cloud-based ERP system Practice Question
An organization is implementing a new cloud-based ERP system. Which of the following is the MOST important action for the information security manager to ensure alignment with the organization's risk appetite?
⚠ Common exam trap
Test-takers frequently confuse operational due diligence (like reviewing SOC 2 reports or negotiating contracts) with the strategic governance action of aligning with risk appetite, which must start with a risk assessment to define the baseline for all subsequent decisions.
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 and evaluate risks associated with the cloud deployment.
Conducting a risk assessment (A) is the most important action because it directly evaluates the cloud ERP deployment against the organization's risk appetite, identifying, analyzing, and evaluating risks such as data exposure, vendor lock-in, and compliance gaps. This foundational step ensures that subsequent controls, contracts, and policies are aligned with the acceptable level of risk, as defined by the organization's risk tolerance thresholds.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Conduct a risk assessment to identify and evaluate risks associated with the cloud deployment.
Why this is correct
A risk assessment identifies and evaluates threats, vulnerabilities and impacts specific to the cloud ERP deployment, producing the risk picture against which tolerance can be judged. Without it, the security manager cannot demonstrate that residual risk aligns with the organisation's stated risk appetite.
- ✗
Review the cloud provider's SOC 2 report for compliance with relevant regulations.
Why it's wrong here
A SOC 2 report evidences the provider's controls, not the organisation's own risk appetite alignment. It tempts because third-party assurance is valuable due diligence, but it addresses vendor control effectiveness rather than confirming the ERP deployment matches the stated tolerance.
- ✗
Negotiate contract terms including data protection clauses with the cloud provider.
Why it's wrong here
Contract clauses address legal liability after incidents, not whether residual risk matches the organisation's stated tolerance. It tempts because data protection terms are essential for cloud governance, but they belong to procurement and legal review rather than the risk-appetite alignment decision itself.
- ✗
Develop a detailed access control policy specifically for the cloud ERP system.
Why it's wrong here
An access control policy governs who may use the ERP, not whether the system's overall risk exposure sits within the organisation's accepted tolerance. It tempts because access control is a core security control, but it is a downstream implementation detail rather than the alignment action.
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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.