mediumMultiple ChoiceObjective-mapped
CISM Practice Question: BankOne has a mature security governance program…
BankOne has a mature security governance program but recently failed a regulatory audit because the board had not formally approved the risk appetite statement. The CISO argues that risk appetite is reviewed annually and was verbally approved. To prevent recurrence, what governance change is most effective?
⚠ Common exam trap
Watch out — candidates often confuse operational improvements (like automating monitoring or reducing indicators) with governance-level fixes, failing to recognize that the audit failure was due to a lack of formal, documented board approval, not a deficiency in the monitoring or reporting process.
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
✓
Require board resolution for risk appetite annually
The core issue is the lack of formal, documented board approval of the risk appetite statement, which is a governance requirement. A formal board resolution, passed and recorded annually, creates an auditable record that satisfies regulatory scrutiny and ensures the board's explicit ownership of risk tolerance. This directly addresses the audit failure by moving from informal verbal approval to a legally binding, documented governance process.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Automate risk appetite monitoring
Why it's wrong here
Monitoring does not replace formal approval.
- ✗
Reduce the number of risk indicators
Why it's wrong here
Does not address the approval gap.
- ✗
Document all board approvals in minutes
Why it's wrong here
Minutes are not a formal resolution.
- ✓
Require board resolution for risk appetite annually
Why this is correct
Ensures documented, formal approval.
Go deeper
Related to this question
About these practice questions
One of 871 original CISM practice questions on Courseiva, each with a full explanation and wrong-answer analysis — not exam dumps or protected exam content. Learn why practice questions differ from exam dumps →
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.