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Exam CRISC topic 1 question 1441 discussion

Actual exam question from Isaca's CRISC
Question #: 1441
Topic #: 1
[All CRISC Questions]

An organization wants to transfer risk by purchasing 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
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Suggested Answer: C 🗳️

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K5000ism
11 months, 2 weeks ago
Selected Answer: C
C. Current annualized loss expectancy report The annualized loss expectancy (ALE) is a key metric in risk management that combines the probability of a loss event occurring with the potential financial impact. Communicating the current ALE to senior management is crucial for helping them understand the financial implications of the risks the organization faces and determining the appropriate level of insurance coverage needed. This information can guide discussions with insurers to ensure that the selected insurance policy aligns with the organization's risk tolerance and provides adequate coverage.
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