QuestionQ9

VerifiedRisk Identification, Monitoring and Analysis

The criterion for assessing the legal requirements for implementing safeguards is to compare the cost (C) of instituting the protection with the estimated loss (L) that would result from exploitation of the corresponding vulnerability. Therefore, legal liability may exist when:

Explanation

Legal liability may arise when an organization fails to implement a safeguard whose cost is lower than the anticipated loss from the related vulnerability. In that circumstance, the protection is economically justified and its omission may be viewed as a failure to exercise reasonable care.

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