350-201 Question 27
Select 4A financial institution is conducting a risk analysis as part of its cybersecurity strategy. During the process, the team identifies that unauthorized access to customer account data could occur if an outdated authentication mechanism is exploited by a malicious actor. Which elements of risk analysis are involved in this scenario?
- A
The customer account data represents an asset.
- B
The outdated authentication mechanism represents a vulnerability.
- C
The malicious actor exploiting the mechanism represents a threat.
- D
The financial institution's reputation represents a vulnerability.
- E
Risk is quantified by the likelihood of the malicious actor succeeding and the potential impact.
Show answer and explanation
Correct answers: A, B, C, E
Explanation
Risk analysis involves identifying assets (valuable resources like customer account data), vulnerabilities (weaknesses like outdated authentication mechanisms), and threats (actors or events that could exploit vulnerabilities). Risk is then quantified by assessing the likelihood of exploitation and its impact. Understanding these elements helps organizations prioritize and mitigate risks effectively.
- A. Correct.
The customer account data is a valuable resource for the organization and is considered an asset in the context of risk analysis.
- B. Correct.
The outdated authentication mechanism is a weakness in the system that could be exploited, making it a vulnerability.
- C. Correct.
The malicious actor aiming to exploit the mechanism is considered a threat in risk analysis.
- D. Incorrect.
The financial institution's reputation may be affected by the risk but it is not categorized as a vulnerability. Vulnerabilities refer to weaknesses in systems or processes.
- E. Correct.
Risk is measured by considering the likelihood of the threat materializing and the potential impact on the organization, making this a valid part of risk analysis.