Isaca CISM Certified Information Security Manager Exam Dumps and Practice Test Questions Set 1 Q1-20

Visit here for our full Isaca CISM exam dumps and practice test questions.

Question 1

A CISM professional is reviewing the implementation of a new cloud-based ERP system that will store sensitive financial and operational data. The executive team wants to ensure that the risk assessment identifies all potential security threats and business impacts. Which approach should the CISM prioritize during this risk assessment?

A) Evaluate vendor market reputation and industry certifications
B) Assess internal user readiness and acceptance
C) Identify and evaluate threats, vulnerabilities, and potential business impacts
D) Focus on the total cost of cloud infrastructure

Answer: Identify and evaluate threats, vulnerabilities, and potential business impacts

Explanation:

In the CISM domain of Information Risk Management, conducting a comprehensive risk assessment is foundational to protecting information assets. The goal is to identify risks to the confidentiality, integrity, and availability of critical information systems and determine the business impact if those risks were realized. In the case of a cloud-based ERP system, the CISM should prioritize a structured risk assessment that evaluates threats such as cyberattacks, insider misuse, and accidental data disclosure, alongside system vulnerabilities like weak access controls, misconfigurations, or insufficient monitoring. Evaluating these threats and vulnerabilities allows the organization to quantify risk and implement appropriate mitigation strategies.

Vendor reputation and certifications, while relevant to procurement and vendor management, do not replace the identification of technical and operational risks (Option A). Assessing user acceptance is part of change management (Option B), which affects adoption but not the formal risk assessment. Similarly, total infrastructure cost (Option D) is a financial metric and does not directly measure the likelihood or impact of threats.

A best-practice risk assessment follows several steps. First, it identifies all critical assets, such as sensitive financial data and intellectual property. Next, potential threats are mapped to each asset, including external threats like ransomware attacks and internal threats such as unintentional data exposure. Vulnerabilities are then evaluated; for example, misconfigured cloud permissions or unpatched ERP modules can increase the risk exposure. Once threats and vulnerabilities are defined, the assessment measures the potential business impact, considering operational disruption, regulatory fines, reputational damage, and financial loss.

The CISM also integrates risk assessment with business objectives. Cloud systems often cross organizational boundaries, creating shared responsibility models between the provider and the enterprise. Evaluating the risk within this shared model ensures that controls are aligned with the business’s risk appetite. Controls can include access management, encryption, monitoring, and incident response plans that are specifically designed for cloud environments.

Furthermore, documenting the risk assessment is crucial. The report should clearly state the identified threats, associated vulnerabilities, potential impacts, likelihood of occurrence, and recommended controls. This documentation supports informed decision-making by executives and provides a reference point for audits or compliance evaluations. Additionally, risk assessment should be ongoing; periodic reassessment ensures that new threats, vulnerabilities, or business priorities are addressed as the ERP system evolves.

By prioritizing the identification and evaluation of threats, vulnerabilities, and impacts, the CISM ensures that the organization has a comprehensive understanding of risks associated with the cloud ERP system. This approach directly aligns with CISM standards, providing a structured methodology to protect critical information assets while supporting strategic business goals. It enables the organization to implement targeted controls, comply with regulatory requirements, and maintain stakeholder confidence in the security of sensitive information.

Question 2

A company is implementing a new IT governance framework to align information security initiatives with business objectives. The board wants to ensure that IT-related decisions support business goals while mitigating risks. Which CISM domain is most relevant for this task?

A) Information Security Program Development and Management
B) Information Risk Management
C) Information Security Governance
D) Incident Management and Response

Answer: Information Security Governance

Explanation:

Information Security Governance is one of the four CISM domains and focuses on ensuring that information security aligns with business goals, delivers value, and manages risks effectively. The CISM professional’s role is to guide executives and the board regarding policies, standards, and frameworks that direct IT and security initiatives toward strategic objectives. In this scenario, the board’s concern is ensuring that IT decisions and resource allocations not only protect information but also support business priorities and regulatory compliance. This aligns directly with governance responsibilities, which include oversight, policy enforcement, and performance monitoring.

Program development and management (Option A) focuses on implementing and managing security programs rather than guiding enterprise-level alignment with business objectives. Information Risk Management (Option B) addresses identifying and mitigating risks, but it is one component within governance rather than the overall framework for alignment. Incident Management and Response (Option D) is operational in nature, dealing with the detection, response, and recovery from security incidents. While important, it does not guide strategic alignment of IT initiatives.

The governance process begins with defining a clear information security strategy that aligns with organizational objectives. This strategy sets the framework for policies, procedures, and resource allocation, establishing how the organization manages information assets. The CISM must engage with stakeholders across the enterprise to ensure that business priorities are understood and that security initiatives do not become operational silos. Metrics and key performance indicators (KPIs) are developed to monitor security effectiveness and ensure alignment with objectives.

Governance also includes establishing accountability structures, such as assigning roles and responsibilities for information security, risk management, and compliance. Regular reporting to the board ensures transparency and provides decision-makers with insight into emerging threats, risk posture, and security program performance. The CISM provides recommendations for improving governance structures, prioritizing investments, and adopting best practices based on industry standards, such as ISO/IEC 27001, COBIT, and NIST frameworks.

By focusing on Information Security Governance, organizations ensure that IT investments and security programs support the business mission, balance risk with operational needs, and demonstrate measurable value to stakeholders. This domain enables proactive oversight, strategic alignment, and continuous improvement of security practices. It also ensures compliance with regulatory requirements, enhances trust with customers and partners, and supports long-term enterprise resilience.

Question 3

An organization experienced multiple data breaches due to weak access controls. Management asks the CISM to recommend measures to prevent unauthorized access while maintaining operational efficiency. Which approach should the CISM prioritize?

A) Implementing periodic employee awareness training
B) Deploying multi-factor authentication (MFA) and role-based access control (RBAC)
C) Increasing password complexity requirements only
D) Monitoring system logs without access restrictions

Answer: Deploying multi-factor authentication (MFA) and role-based access control (RBAC)

Explanation:

Preventing unauthorized access requires a combination of identity verification and access control mechanisms that enforce the principle of least privilege. Multi-factor authentication (MFA) strengthens user authentication by requiring multiple independent credentials, such as a password and a biometric factor, reducing the likelihood of unauthorized account access. Role-based access control (RBAC) ensures that users are assigned permissions based on their job functions, limiting access to only those resources necessary for their duties.

Periodic training (Option A) raises awareness but cannot prevent breaches from compromised credentials. Increasing password complexity (Option C) is beneficial but insufficient alone, as passwords can still be phished or stolen. Monitoring system logs (Option D) detects events post-factum but does not proactively prevent unauthorized access.

A robust access control strategy begins with identifying all user roles, classifying data sensitivity, and defining access policies that enforce least privilege. RBAC simplifies this by mapping roles to predefined permissions, reducing administrative errors and ensuring consistency. MFA adds a layer of verification, requiring factors from at least two categories: something the user knows, something the user has, or something the user is.

The CISM must also oversee continuous monitoring and auditing of access rights. Periodic reviews ensure that users who change roles or leave the organization no longer have inappropriate access. Logging and alerting mechanisms identify suspicious activities, such as multiple failed logins or access attempts outside normal working hours, enabling rapid response to potential threats.

This approach balances security and operational efficiency. Users gain access to necessary resources without unnecessary friction, while the organization reduces risk exposure from credential compromise or insider threats. Integrating MFA and RBAC demonstrates compliance with industry standards, supports regulatory requirements, and establishes a strong foundation for identity and access management programs.

Question 4

A financial services company must comply with strict regulatory requirements for data retention and auditability. The CISM is asked to design a strategy for information lifecycle management. Which principle should the CISM apply first?

A) Minimize storage costs by deleting old data immediately
B) Identify and classify information based on sensitivity and regulatory requirements
C) Allow users to decide retention periods for their files
D) Retain all information indefinitely to avoid risk

Answer: Identify and classify information based on sensitivity and regulatory requirements

Explanation:

Effective information lifecycle management begins with identifying and classifying information based on sensitivity, regulatory requirements, and business value. Classification provides a foundation for defining retention periods, access controls, encryption, and disposal methods. Without proper classification, organizations risk noncompliance, unauthorized disclosure, or excessive storage costs.

Deleting data immediately (Option A) could violate legal or regulatory retention requirements. Allowing users to determine retention (Option C) introduces inconsistencies and potential risks. Retaining all information indefinitely (Option D) increases storage costs and may create unnecessary exposure to breaches or leaks.

The CISM establishes policies that categorize information into levels such as confidential, internal, public, or regulated data. Classification criteria may include regulatory obligations (e.g., GDPR, SOX, HIPAA), business criticality, and sensitivity. Once classified, retention schedules are defined for each category, ensuring that data is kept as long as legally required and securely destroyed when no longer needed.

Lifecycle management also includes access control, backup, and archival strategies. Confidential data may require encrypted storage, restricted access, and monitored activity. Archival solutions should support audit trails to provide evidence of compliance during regulatory inspections. Disposal mechanisms such as secure deletion or media destruction are applied according to classification to prevent data leakage.

By prioritizing classification, the CISM ensures that lifecycle management supports compliance, risk reduction, operational efficiency, and cost management. It enables consistent application of retention rules, reduces liability, and establishes a defensible approach to managing critical information throughout its lifecycle.

Question 5

An organization suffered a ransomware attack that encrypted critical files, disrupting operations for several days. Management wants the CISM to recommend improvements for future incident resilience. Which approach should the CISM prioritize?

A) Develop and regularly test an incident response and business continuity plan
B) Implement stricter password policies only
C) Increase monitoring without formal procedures
D) Block all external communications permanently

Answer: Develop and regularly test an incident response and business continuity plan

Explanation:

Incident response and business continuity planning are essential for minimizing the impact of security events such as ransomware attacks. The CISM’s role is to ensure that the organization has documented procedures to detect, respond to, and recover from incidents, reducing downtime and operational losses. A comprehensive incident response plan includes roles and responsibilities, communication protocols, containment strategies, evidence preservation, and post-incident review.

Regular testing through tabletop exercises or simulations ensures that staff understand procedures and can respond effectively. Business continuity plans complement incident response by ensuring that critical operations can continue during or after an incident, including alternative sites, data restoration, and prioritized workflows.

Stricter password policies (Option B) may reduce some risks, but do not provide resilience against already occurring ransomware. Increased monitoring (Option C) alone is reactive and insufficient without structured response procedures. Blocking external communications permanently (Option D) is impractical and disruptive to business operations.

The CISM also ensures that preventive measures, such as regular backups, patch management, network segmentation, and employee awareness training, are integrated into the overall strategy. Backup strategies must include offline or immutable copies to protect against ransomware encryption. Incident lessons learned are incorporated into policy updates and awareness programs to strengthen the organization’s security posture over time.

By prioritizing a formal, tested incident response and business continuity program, the organization improves its resilience, reduces downtime, protects critical assets, and maintains regulatory compliance. This aligns with CISM principles by addressing operational risks, enhancing preparedness, and ensuring the continuity of strategic objectives during disruptive events.

Question 6

A multinational corporation is implementing a data protection strategy to ensure compliance with privacy regulations across multiple jurisdictions. The CISM is asked to recommend the first step in establishing an effective program. Which action should the CISM prioritize?

A) Deploy advanced encryption on all sensitive databases immediately
B) Conduct a comprehensive data inventory and classify information based on sensitivity and regulatory requirements
C) Create a global privacy policy without assessing local laws
D) Train employees on phishing attacks only

Answer: Conduct a comprehensive data inventory and classify information based on sensitivity and regulatory requirements

Explanation:

An effective data protection strategy begins with understanding what information exists within the organization, where it resides, and how sensitive or regulated it is. Conducting a data inventory enables the organization to map critical assets, identify personally identifiable information (PII), financial data, intellectual property, and any other sensitive information. Classification allows the CISM to prioritize controls based on data sensitivity, business impact, and regulatory obligations.

Deploying encryption immediately (Option A) without understanding data locations, criticality, or regulatory requirements may lead to incomplete coverage, operational inefficiencies, or unnecessary expenditure. Creating a global privacy policy without assessing local laws (Option C) risks noncompliance with regional requirements, such as GDPR in Europe, CCPA in California, or LGPD in Brazil. Training employees on phishing (Option D) is a preventive measure, but it does not address the foundational understanding of data flows and compliance obligations.

The classification process typically involves categorizing data into levels such as public, internal, confidential, or regulated. Each category has defined handling procedures, access controls, retention periods, and encryption requirements. For example, PII may require encryption both in transit and at rest, while intellectual property may need strict access restrictions and monitoring. Regulatory mapping ensures that each dataset is handled in compliance with applicable laws, minimizing the risk of fines, legal actions, or reputational damage.

Once data is inventoried and classified, the CISM can design policies, controls, and monitoring processes aligned with business objectives. Risk assessments are conducted to identify potential threats, vulnerabilities, and the impact of data breaches. Security controls may include encryption, tokenization, access management, audit logging, and monitoring for unauthorized access.

Employee awareness programs and process documentation are then tailored based on the classification framework. Employees handling confidential or regulated information receive targeted training, ensuring proper handling, storage, and sharing practices. Integration with incident response and data breach notification procedures ensures that the organization can respond quickly to any event affecting sensitive data.

A comprehensive inventory and classification foundation allows for consistent implementation of security policies, simplifies regulatory reporting, and ensures that investments in technology, process improvements, and training are prioritized effectively. This proactive approach supports the CISM’s responsibility to manage information risk, align security initiatives with business objectives, and maintain compliance with evolving privacy regulations globally.

Question 7

An organization wants to implement a security program that continuously monitors vulnerabilities and reduces the attack surface. The CISM is asked to ensure that all systems remain resilient to evolving threats. Which approach should the CISM recommend?

A) Deploy annual vulnerability scans and patch systems once a year
B) Implement continuous monitoring, vulnerability management, and automated patching
C) Conduct a risk assessment only when new applications are deployed
D) Rely solely on external penetration testing once every two years

Answer: Implement continuous monitoring, vulnerability management, and automated patching

Explanation:

Continuous monitoring and vulnerability management are key components of an effective security program aligned with CISM principles. Threats evolve rapidly, and systems must be regularly assessed to identify weaknesses that could be exploited. Continuous monitoring tools track system configurations, network traffic, and application behaviors in real time, enabling early detection of anomalies or deviations from security policies. Automated vulnerability scanning identifies outdated software, misconfigurations, and known vulnerabilities, while automated patching ensures timely remediation.

Annual scans and patching (Option A) are insufficient, as critical vulnerabilities may be exploited within days of disclosure. Conducting risk assessments only when new applications are deployed (Option C) fails to address ongoing threats against existing systems. Relying solely on penetration testing every two years (Option D) provides a limited point-in-time snapshot and does not address emerging vulnerabilities.

A CISM-guided vulnerability management program begins with asset identification and classification. Systems are prioritized based on criticality, exposure, and potential business impact. Continuous monitoring integrates with threat intelligence feeds, detecting emerging exploits, malware campaigns, and anomalous activity. Automated patch deployment reduces the window of exposure and ensures consistent security across the environment, reducing reliance on manual interventions that are prone to error.

Remediation workflows are tracked, ensuring accountability and completion verification. For high-risk systems, additional compensating controls may be implemented, such as network segmentation, multi-factor authentication, and intrusion detection systems. The CISM ensures that metrics and KPIs are defined, measuring vulnerability reduction, patch compliance, and time to remediation, which can be reported to management and the board.

This proactive, continuous approach enhances organizational resilience, minimizes the likelihood of successful attacks, and aligns with enterprise risk management goals. It allows IT and security teams to respond rapidly to emerging threats, reduces operational disruptions, and provides assurance that information assets are protected consistently. Continuous vulnerability management is therefore essential for maintaining a secure, reliable, and compliant information environment.

Question 8

A company experiences repeated security incidents due to employees using personal devices for work without proper oversight. The CISM is asked to recommend a strategy to secure corporate data on these devices. Which control should the CISM prioritize?

A) Implement a Bring Your Own Device (BYOD) policy with Mobile Device Management (MDM) and enforce encryption
B) Block all personal devices from connecting to the corporate network
C) Require employees to share passwords for company apps on personal devices
D) Rely on antivirus software on personal devices only

Answer: Implement a Bring Your Own Device (BYOD) policy with Mobile Device Management (MDM) and enforce encryption

Explanation:

Mobile Device Management (MDM) is a critical control to enforce security on personal devices while supporting business mobility. A well-defined BYOD policy sets expectations, defines acceptable use, and establishes technical controls to protect corporate data. MDM platforms allow administrators to enforce encryption, strong passwords, remote wipe capabilities, application restrictions, and compliance monitoring.

Blocking personal devices entirely (Option B) may be impractical in organizations that rely on mobile productivity. Requiring employees to share passwords (Option C) violates security best practices and increases the risk of compromise. Relying solely on antivirus software (Option D) provides limited protection and cannot enforce organizational policies or compliance requirements.

The CISM ensures that the BYOD program aligns with enterprise risk management, compliance obligations, and operational needs. Data classification informs which information can reside on personal devices, and policies may restrict access to highly sensitive data. Enrollment procedures integrate devices with the MDM system, ensuring that security configurations, compliance checks, and access controls are applied automatically.

Security controls include device encryption, screen locks, application whitelisting, secure VPN access, and remote wipe capabilities in case of loss or theft. Regular audits verify compliance and detect deviations from policy. Employee training is critical, emphasizing secure usage, data handling, and reporting lost or compromised devices.

The BYOD strategy provides a balance between security and productivity. Employees can use personal devices safely while corporate data remains protected, supporting mobility and operational efficiency. By leveraging MDM and strong encryption, the CISM reduces the risk of data breaches, ensures regulatory compliance, and enforces consistent security practices across a heterogeneous device environment.

Question 9

During an audit, it is discovered that multiple critical applications do not have formal change management procedures. The CISM is asked to recommend corrective actions to reduce operational and security risks. Which action should the CISM prioritize?

A) Implement formal change management processes, including testing, approval, and documentation
B) Allow developers to implement changes immediately to speed up deployment
C) Maintain a log of changes without formal approvals
D) Limit changes to non-critical systems only

Answer: Implement formal change management processes, including testing, approval, and documentation

Explanation:

Formal change management ensures that modifications to critical applications are reviewed, approved, tested, and documented before deployment. This reduces the likelihood of introducing errors, vulnerabilities, or system downtime. The CISM ensures that processes include risk assessment of each change, testing in a controlled environment, and proper rollback procedures.

Allowing developers to implement changes immediately (Option B) introduces uncontrolled risk, increasing the likelihood of outages or security breaches. Logging changes without approvals (Option C) provides visibility but does not prevent errors or unauthorized modifications. Limiting changes to non-critical systems (Option D) ignores the risks to critical systems and does not address governance requirements.

A robust change management process involves several steps: submission of change requests, risk evaluation, impact assessment, testing, approval from authorized personnel, deployment according to schedule, and post-implementation review. Documentation ensures accountability, auditability, and compliance with standards like ITIL, COBIT, and ISO/IEC 20000.

The CISM ensures that the process is integrated with incident management, configuration management, and security controls. Automated tools can enforce approvals, track changes, and generate reports for management. By implementing formal change management, organizations reduce operational disruptions, improve system stability, and strengthen the security posture, aligning with enterprise risk management objectives.

Question 10

A company plans to outsource its data center operations to a third-party service provider. The CISM is asked to ensure that security and compliance obligations are maintained. Which approach should the CISM prioritize?

A) Establish comprehensive contracts with security requirements, service-level agreements, and audit rights
B) Assume that the provider’s internal security is sufficient without verification
C) Transfer all security responsibilities entirely to the service provider
D) Reduce oversight once initial compliance documentation is received

Answer: Establish comprehensive contracts with security requirements, service-level agreements, and audit rights

Explanation:

Outsourcing IT operations introduces third-party risk that must be managed proactively. The CISM ensures that contracts clearly define security expectations, regulatory obligations, and service-level agreements (SLAs) related to uptime, performance, and incident response. Audit rights allow the organization to independently verify compliance, ensuring that data protection and operational controls are maintained.

Assuming the provider’s security is sufficient (Option B) or transferring all responsibility (Option C) exposes the organization to uncontrolled risk. Reducing oversight after receiving documentation (Option D) ignores the dynamic nature of third-party risks, including evolving threats, personnel changes, or regulatory updates.

The CISM ensures that due diligence includes security assessments, certifications (e.g., ISO 27001, SOC 2), and ongoing monitoring. Periodic audits, reviews of incident reports, and contractual enforcement mechanisms strengthen the organization’s control over outsourced operations. Data classification informs which assets may be outsourced, and access controls ensure that only authorized provider personnel can access sensitive information.

Establishing robust contracts and oversight mechanisms aligns with CISM domains by maintaining risk management, governance, and compliance obligations. It ensures accountability, protects critical assets, and reduces operational and reputational risk while leveraging third-party resources efficiently.

Question 11

An organization is experiencing frequent insider threats, including unauthorized access and data exfiltration by employees. Management asks the CISM to recommend controls to mitigate this risk while maintaining productivity. Which approach should the CISM prioritize?

A) Implement strict monitoring of all employee communications without differentiation
B) Apply role-based access control (RBAC), user activity monitoring, and insider threat programs
C) Terminate employees upon any minor policy violation
D) Rely solely on antivirus and firewall protections

Answer: Apply role-based access control (RBAC), user activity monitoring, and insider threat programs

Explanation:

Mitigating insider threats requires a layered approach that balances security, operational efficiency, and employee trust. The CISM should prioritize controls that limit access to necessary resources, monitor user activity for anomalies, and implement structured insider threat programs. Role-based access control (RBAC) ensures employees can only access systems and data needed for their job functions, enforcing the principle of least privilege and reducing the attack surface.

User activity monitoring detects unusual behaviors, such as large data transfers, access at unusual hours, or attempts to access unauthorized files. These tools provide early warning signals without excessively restricting legitimate work, allowing security teams to investigate suspicious events proactively. Insider threat programs combine technical controls, policies, and awareness campaigns to educate employees about acceptable behavior, reporting mechanisms, and potential consequences of policy violations.

Strict monitoring of all communications without differentiation (Option A) can erode employee trust, violate privacy laws, and create operational friction. Terminating employees for minor infractions (Option C) is an extreme measure that does not address systemic risks and can create legal or reputational issues. Relying solely on antivirus and firewalls (Option D) does not address insider threats, which often bypass traditional perimeter defenses.

The CISM should begin by conducting a risk assessment to identify high-risk roles, sensitive data, and critical systems. Policies are developed to define acceptable use, segregation of duties, and access requirements. RBAC implementation maps job roles to data and system privileges, minimizing unnecessary permissions. User activity monitoring systems can include log analysis, behavioral analytics, and alerting to ensure early detection of anomalies.

Insider threat programs also emphasize preventive measures, including employee awareness, ethics training, and clear reporting channels. Periodic audits and reviews ensure compliance and help refine policies. Integration with incident response and HR processes ensures that detected threats are handled efficiently and legally.

Combining RBAC, monitoring, and structured insider threat programs reduces the likelihood of malicious or accidental insider actions while maintaining productivity. Employees retain access to necessary resources but are deterred from policy violations. This approach aligns with CISM’s objectives of protecting information assets, maintaining business continuity, and managing risk while supporting organizational objectives and compliance requirements.

Question 12

A company plans to integrate a new third-party software solution into its financial operations. The CISM is asked to assess security risks before deployment. Which action should the CISM prioritize?

A) Review software functionality only, ignoring security controls
B) Conduct a comprehensive security risk assessment, including vendor security posture, integration risks, and data handling
C) Deploy the software immediately to meet business deadlines
D) Rely solely on vendor-provided security documentation

Answer: Conduct a comprehensive security risk assessment, including vendor security posture, integration risks, and data handling

Explanation:

Before integrating third-party software, a CISM must ensure that security risks are identified, evaluated, and mitigated. A comprehensive security risk assessment evaluates the vendor’s security posture, including compliance certifications (ISO 27001, SOC 2), historical security incidents, and processes for patching and updates. Integration risks are assessed to understand potential vulnerabilities introduced into the existing environment, such as open APIs, insecure data flows, or dependency conflicts. Data handling policies must be reviewed to ensure sensitive information is properly protected, encrypted, and retained according to regulatory requirements.

Reviewing functionality only (Option A) addresses business needs but ignores critical security considerations. Deploying the software immediately (Option C) exposes the organization to unmitigated risks. Relying solely on vendor documentation (Option D) assumes the vendor’s controls are sufficient without independent verification, which may result in undiscovered vulnerabilities.

The assessment process includes identifying all affected systems, mapping data flows, and determining potential impacts of security breaches. Threat modeling is often performed to identify attack vectors, such as injection attacks, privilege escalation, or data leakage. The CISM also ensures that the software complies with internal policies, regulatory obligations, and industry standards.

Based on the findings, mitigation measures can be implemented, including configuration hardening, encryption, network segmentation, access control, and monitoring. A formal approval process ensures that risk decisions are documented and communicated to stakeholders. Integration testing should validate security controls and verify that new vulnerabilities are not introduced.

By performing a thorough security risk assessment, the organization minimizes exposure to threats, ensures regulatory compliance, and protects sensitive financial information. This proactive approach aligns with CISM’s responsibility to manage risk and maintain information security governance, supporting strategic objectives while enabling safe adoption of new technologies.

Question 13

An organization is struggling with inconsistent incident response procedures across business units, leading to delayed responses and data loss. The CISM is asked to standardize incident handling. Which action should the CISM prioritize?

A) Develop and enforce a centralized, organization-wide incident response plan with clear roles, procedures, and communication protocols
B) Allow each business unit to maintain its own informal process
C) Focus solely on post-incident reporting without proactive planning
D) Delegate incident response entirely to IT operations without management oversight

Answer: Develop and enforce a centralized, organization-wide incident response plan with clear roles, procedures, and communication protocols

Explanation:

A centralized incident response plan ensures consistent, coordinated, and effective handling of security incidents across the organization. The CISM’s role includes defining policies, procedures, roles, and responsibilities for detection, containment, eradication, recovery, and post-incident review. Clear communication protocols are established to escalate incidents to management, legal, IT, and other stakeholders promptly.

Allowing each business unit to maintain its own informal process (Option B) creates inconsistencies, confusion, and increased risk of delayed response or missed steps. Focusing solely on post-incident reporting (Option C) does not prevent or mitigate incidents proactively. Delegating response entirely to IT operations (Option D) without governance oversight limits accountability and alignment with business objectives.

The process begins with identifying types of incidents, severity levels, and potential impacts. Playbooks and workflows are developed for each scenario, including malware infections, data breaches, system outages, and insider threats. Responsibilities are assigned to incident handlers, communication teams, legal advisors, and management, ensuring timely and accurate decision-making.

Integration with monitoring, alerting, and logging systems allows early detection and response. Regular training and tabletop exercises familiarize employees and responders with procedures, test readiness, and identify gaps. Post-incident reviews provide lessons learned, refine procedures, and improve resilience.

Standardized incident response aligns with CISM principles by protecting information assets, minimizing operational disruption, complying with regulatory requirements, and supporting continuous improvement in organizational security posture. This structured approach reduces the likelihood of repeated mistakes, ensures accountability, and enhances the organization’s ability to respond quickly and effectively to emerging threats.

Question 14

A healthcare organization must comply with HIPAA regulations, including secure storage and transmission of patient data. The CISM is tasked with recommending appropriate security controls. Which approach should the CISM prioritize?

A) Implement comprehensive access controls, encryption, audit logging, and staff training for all systems handling patient data
B) Focus only on antivirus protection for electronic health records
C) Rely solely on the physical security of the data center
D) Allow unrestricted access to all healthcare personnel to improve workflow efficiency

Answer: Implement comprehensive access controls, encryption, audit logging, and staff training for all systems handling patient data

Explanation:

HIPAA requires healthcare organizations to protect patient information through technical, administrative, and physical safeguards. The CISM must ensure that access controls limit data access to authorized personnel, enforcing least privilege. Encryption protects data both at rest and in transit, mitigating risks of unauthorized disclosure during storage or network transfer. Audit logging enables tracking and reporting of access, modifications, or suspicious activity, supporting compliance and incident investigations.

Staff training ensures that personnel understand privacy requirements, acceptable use, and reporting procedures. Awareness programs reduce human errors that could result in breaches, such as sharing credentials or mishandling sensitive information.

Focusing solely on antivirus (Option B) does not address the administrative, physical, or technical safeguards required by HIPAA. Relying only on physical security (Option C) ignores electronic data threats and regulatory requirements. Allowing unrestricted access (Option D) violates the principle of least privilege and increases exposure to accidental or malicious breaches.

The CISM evaluates systems handling electronic protected health information (ePHI), ensuring access controls, role-based permissions, secure authentication, encryption, and continuous monitoring. Risk assessments identify vulnerabilities, and mitigation strategies are implemented. Policies and procedures are documented, reviewed, and regularly updated to remain compliant with evolving regulations.

By applying comprehensive controls, the organization ensures patient data confidentiality, integrity, and availability. This approach reduces the risk of regulatory penalties, enhances patient trust, and aligns with CISM responsibilities for risk management, governance, and compliance oversight in a high-risk industry environment.

Question 15

A company wants to implement continuous monitoring of critical IT systems to identify anomalies, potential breaches, and compliance violations. The CISM is asked to define the monitoring framework. Which approach should the CISM prioritize?

A) Implement Security Information and Event Management (SIEM) systems, define metrics, and integrate with incident response processes
B) Review logs manually only once a quarter
C) Monitor only perimeter firewalls while ignoring endpoints and applications
D) Assume existing antivirus software provides sufficient visibility

Answer: Implement Security Information and Event Management (SIEM) systems, define metrics, and integrate with incident response processes

Explanation:

Continuous monitoring provides real-time visibility into IT systems, enabling rapid detection and response to security incidents. SIEM platforms aggregate logs from multiple sources, including servers, endpoints, network devices, applications, and security controls, correlating events to identify anomalies or suspicious activities. The CISM ensures that monitoring aligns with business objectives, compliance requirements, and risk management strategies.

Manual log reviews (Option B) are insufficient due to scale, complexity, and timeliness requirements. Monitoring only perimeter firewalls (Option C) ignores threats originating internally or at endpoints. Relying solely on antivirus software (Option D) provides limited visibility and cannot detect sophisticated or insider threats.

The framework begins with identifying critical assets, defining key performance indicators (KPIs) and metrics, and specifying thresholds for alerts. Integration with incident response ensures that detected anomalies trigger timely investigation, containment, and remediation. Dashboards provide management with insights into security posture and compliance adherence.

Alert tuning, correlation rules, and automated responses reduce noise and enhance efficiency. Periodic reviews improve detection accuracy, while retention of logs supports forensic analysis, audits, and regulatory compliance. Training and policies ensure staff can interpret alerts and respond effectively.

A SIEM-based monitoring framework provides comprehensive situational awareness, aligns with CISM principles, reduces risk exposure, supports regulatory compliance, and enhances operational resilience by enabling proactive security management across the enterprise.

Question 16

A multinational company is implementing a centralized cloud infrastructure and wants to ensure proper segregation of duties (SoD) to prevent fraud and errors. The CISM is asked to define SoD policies. Which approach should the CISM prioritize?

A) Ensure that critical functions such as transaction initiation, approval, and reconciliation are assigned to different individuals or roles
B) Allow a single user to perform all tasks to simplify operations
C) Focus only on technical controls, ignoring business process segregation
D) Implement SoD only for low-risk, non-critical processes

Answer: Ensure that critical functions such as transaction initiation, approval, and reconciliation are assigned to different individuals or roles

Explanation:

Segregation of duties (SoD) is a key control to mitigate the risk of fraud, errors, or unauthorized actions within business processes, particularly in financial, operational, and cloud-based systems. The CISM’s role is to define policies and procedures that separate responsibilities so that no single individual has control over all aspects of a critical process.

In cloud infrastructure, this involves assigning different roles for tasks such as system provisioning, configuration management, access approval, and audit monitoring. Critical business processes, such as financial transactions, should have separate personnel for initiation, approval, and reconciliation to prevent fraudulent or accidental manipulation. Role-based access control (RBAC) is typically employed to enforce SoD within technical systems, ensuring compliance with organizational policies.

Allowing a single user to perform all tasks (Option B) concentrates risk and violates best practices. Focusing only on technical controls (Option C) without aligning them with business processes may leave gaps that enable misuse. Implementing SoD only for low-risk processes (Option D) ignores areas where exposure is highest, defeating the purpose of the control.

The CISM evaluates existing processes to identify critical tasks and defines SoD policies aligned with regulatory and audit requirements. Monitoring and logging mechanisms are implemented to track user actions and detect violations. Periodic audits ensure that SoD is maintained, and any exceptions are documented and approved under controlled circumstances.

SoD enhances internal control, reduces the risk of fraud, ensures accountability, and aligns with CISM domains of governance and risk management. By properly segregating duties in both technical and business processes, organizations improve compliance, strengthen operational security, and maintain trust with stakeholders.

Question 17

A company is evaluating the risks of implementing IoT devices in its manufacturing operations. The CISM is asked to guide the management of security and operational risks associated with these devices. Which approach should the CISM prioritize?

A) Conduct a comprehensive risk assessment, classify IoT devices, and implement security controls based on risk levels
B) Deploy all IoT devices immediately to maximize operational efficiency
C) Rely solely on vendor-provided security configurations
D) Disconnect IoT devices from the network entirely to avoid risk

Answer: Conduct a comprehensive risk assessment, classify IoT devices, and implement security controls based on risk levels

Explanation:

IoT devices introduce unique security and operational risks, including unauthorized access, data leakage, malware propagation, and operational disruption. The CISM’s role is to ensure that these risks are identified, evaluated, and mitigated while supporting business objectives. A risk-based approach begins with inventorying all IoT devices, identifying their functions, network connectivity, and data handled. Devices are classified based on criticality, sensitivity of data, and potential impact of compromise.

A comprehensive risk assessment evaluates threats such as firmware vulnerabilities, insecure communication protocols, lack of authentication, and potential exploitation by internal or external actors. Vulnerabilities are assessed and prioritized according to potential business impact, including production downtime, safety risks, and regulatory compliance violations.

Controls may include network segmentation to isolate IoT devices, strong authentication, encryption, monitoring of device traffic, and patch management. Vendor security documentation is reviewed and verified, but relying solely on it (Option C) does not provide sufficient assurance. Deploying devices immediately (Option B) exposes the organization to unmitigated risks, while disconnecting them entirely (Option D) eliminates operational benefits and may hinder business objectives.

The CISM also ensures that incident response procedures, monitoring, and logging are adapted for IoT devices, enabling early detection of anomalies or attacks. Policies for secure device provisioning, maintenance, and decommissioning are established to reduce risk throughout the device lifecycle.

By prioritizing a risk-based approach, the organization ensures that IoT deployments are secure, resilient, and aligned with business objectives. This approach supports compliance, minimizes operational disruptions, and demonstrates CISM-aligned governance over emerging technologies.

Question 18

A financial organization wants to improve its vendor risk management program, particularly for critical service providers handling sensitive financial data. The CISM is asked to recommend best practices. Which approach should the CISM prioritize?

A) Conduct vendor due diligence, define security requirements in contracts, and perform ongoing monitoring and audits
B) Assume vendors maintain appropriate security controls without verification
C) Focus only on initial contract negotiation and ignore ongoing oversight
D) Limit risk management to low-impact vendors only

Answer: Conduct vendor due diligence, define security requirements in contracts, and perform ongoing monitoring and audits

Explanation:

Vendor risk management is critical for protecting sensitive information and maintaining compliance, especially in financial organizations. The CISM ensures that third-party risks are systematically assessed and managed through due diligence, contractual requirements, and continuous monitoring. Initial due diligence evaluates the vendor’s financial stability, security posture, compliance certifications (e.g., SOC 2, ISO 27001), and history of security incidents.

Contracts define explicit security requirements, responsibilities, and service-level agreements (SLAs) for confidentiality, integrity, availability, and incident reporting. Audit rights and monitoring obligations are included to allow ongoing verification of compliance. Risk assessments should be repeated periodically, taking into account changes in vendor operations, technologies, and regulatory requirements.

Assuming vendor security is sufficient (Option B) or focusing only on contract negotiation (Option C) exposes the organization to unmanaged risks. Limiting efforts to low-impact vendors (Option D) leaves critical services unprotected.

The CISM establishes metrics and KPIs to evaluate vendor performance and security compliance, integrating vendor risk management into the organization’s overall risk management program. Continuous monitoring may include penetration testing, vulnerability assessments, and review of audit reports.

By systematically managing vendor risks, organizations maintain compliance, protect sensitive data, reduce operational disruptions, and align with governance objectives. This approach ensures accountability, strengthens resilience, and demonstrates due diligence to regulators and stakeholders.

Question 19

An organization experiences repeated failures in security awareness training programs, with employees still falling victim to phishing attacks. The CISM is asked to enhance the program. Which approach should the CISM prioritize?

A) Develop targeted, role-based training, simulate phishing attacks, and measure employee engagement and performance
B) Deliver generic training annually without assessment
C) Rely solely on technical controls to prevent phishing
D) Punish employees for mistakes without training improvements

Answer: Develop targeted, role-based training, simulate phishing attacks, and measure employee engagement and performance

Explanation:

Security awareness is a key component of reducing human risk in organizations. The CISM ensures that awareness programs are effective, measurable, and aligned with organizational risks. Targeted, role-based training addresses the specific responsibilities, access levels, and threats relevant to each employee group. For example, finance personnel may receive specialized training on business email compromise, while IT staff focus on secure system administration practices.

Simulated phishing exercises test employee understanding and reinforce training in a controlled environment. Measurement of engagement, test performance, and incident metrics provides feedback on program effectiveness, identifies knowledge gaps, and guides improvements. Training is iterative and updated to address emerging threats.

Delivering generic training annually (Option B) is ineffective because it may not engage employees or address evolving risks. Relying solely on technical controls (Option C) fails to reduce human error, while punishing employees without training (Option D) is punitive and unlikely to improve long-term behavior.

The CISM ensures integration with risk management, HR, and IT operations, tracking metrics such as click rates, incident reports, and completion of role-based modules. Awareness programs are aligned with compliance requirements (e.g., GDPR, HIPAA) and support the organization’s overall security posture.

By prioritizing targeted, interactive, and measurable awareness programs, the organization reduces the likelihood of successful social engineering attacks, strengthens employee accountability, and fosters a culture of security. This approach aligns with CISM objectives of managing people-related risk and supporting enterprise resilience.

Question 20

A company’s executive management wants assurance that its information security program delivers measurable value, mitigates risks, and supports business objectives. The CISM is asked to provide metrics and reporting. Which approach should the CISM prioritize?

A) Develop a governance and metrics framework that aligns security objectives with business goals, including KPIs, risk indicators, and regular executive reporting
B) Report only the number of incidents without context or trend analysis
C) Focus solely on technical metrics, ignoring business impact
D) Avoid reporting metrics to prevent a negative perception of security risks

Answer: Develop a governance and metrics framework that aligns security objectives with business goals, including KPIs, risk indicators, and regular executive reporting

Explanation:

Effective security governance requires the demonstration of value and risk reduction in terms that executives understand. The CISM develops a metrics framework that aligns security initiatives with business objectives, supports decision-making, and communicates risk posture. Key performance indicators (KPIs) may include incident response times, patch compliance rates, user access violations, and audit findings. Key risk indicators (KRIs) highlight emerging threats, control deficiencies, or operational exposures.

Reporting must provide context, trends, and insights rather than raw data. For example, presenting the reduction in phishing susceptibility over time, improvements in vulnerability remediation cycles, or progress in regulatory compliance demonstrates value. Linking metrics to business objectives ensures that security contributes to continuity, operational efficiency, and strategic goals.

Reporting only incidents (Option B) lacks context and prevents proactive decision-making. Focusing solely on technical metrics (Option C) may not resonate with executives or illustrate business impact. Avoiding reporting (Option D) risks misalignment, lack of oversight, and missed opportunities for improvement.

The CISM ensures that governance reporting includes dashboards, executive summaries, and risk-based assessments, highlighting successes, challenges, and planned improvements. This approach reinforces accountability, enables informed resource allocation, and supports continuous program improvement. It aligns with CISM principles of governance, risk management, and value delivery, ensuring that information security contributes strategically to enterprise objectives.