Certified Information Security Manager CISM · Free Practice Question Medium

Question 1

Under what circumstances would an organization elect to disregard a regulation and pay fines instead of complying?
  • A

    The cost of compliance is less than the cost of fines.

  • B

    Management elected to transfer the risk.

  • C

    Management elected to avoid the risk.

  • D

    The cost of the fines is less than the cost of compliance.

Reveal correct answer

Correct answer: D

Explanation

Correct Answer:

"The cost of the fines is less than the cost of compliance." is correct. While choosing to pay fines in lieu of compliance is uncommon, it is the best answer among the choices listed.

Incorrect Answers:

"The cost of compliance is less than the cost of fines." is incorrect because this does not make good fiscal sense.

"Management elected to transfer the risk." and "Management elected to avoid the risk." are incorrect because risk transfer or risk avoidance would not result in the organization paying fines.

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