CRISC: Certified in Risk and Information Systems ControlDemo

By Isaca · Question Mode

QuestionQ645

Risk Response and Reporting

An organization intends to transfer risk by buying cyber insurance. Which of the following would be MOST important for the risk practitioner to communicate to senior management for contract-negotiation purposes?

  • A Cyber insurance industry benchmarking report
  • B Most recent IT audit report results
  • C Current annualized loss expectancy report
  • D Replacement cost of IT assets
Explanation

Annualized loss expectancy (ALE) quantifies the expected annual financial loss from a risk. It provides the financial basis for evaluating cyber-insurance coverage limits, deductibles, and policy terms during contract negotiations.

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