Certified Information Security Manager CISM · Free Practice Question Medium

Question 33

What is the purpose of knowing the financial health of a service provider?
  • A

    A service provider in financial distress could exhibit degradations in product or service quality.

  • B A service provider in poor financial condition will reduce security first.
  • C A service provider in good financial condition will lower its prices.
  • D A service provider in good financial condition will improve its security.
Reveal correct answer

Correct answer: A

Explanation

Correct Answer:

"A service provider in financial distress could exhibit degradations in product or service quality." is correct. It is important to know the financial health of a service provider on an ongoing basis. If a service provider experiences financial distress, service/product quality could suffer, as could security.

Incorrect Answers:

The remaining answers are incorrect. They are not the expected outcomes of a service provider in financial distress.

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