ECCouncil Updated 712-50 Exam Questions and Answers by nylah

 Explanation:

A risk-tolerant organization is willing to accept higher levels of risk to achieve strategic objectives, such as rapid innovation or aggressive market positioning.

In this scenario, the organization prioritizes business velocity and innovation over concerns about compliance with privacy regulations, demonstrating a tolerance for potential risks.

 Why Other Options Are Incorrect:

A. Risk averse: A risk-averse organization would avoid actions that increase exposure to privacy regulations.

C. Risk conditional: This would apply if the organization only accepted risks under specific conditions or constraints, which is not evident here.

D. Risk minimal: A risk-minimal organization would take steps to limit risks significantly, contrary to prioritizing business velocity over privacy.

 EC-Council CISO Reference:

The program emphasizes understanding an organization’s risk tolerance as part of effective risk management and decision-making processes.

 Role of the Board of Directors in Determining Risk Appetite:

The Board defines the organization's risk tolerance, balancing operational objectives with acceptable risk levels. This aligns with governance and fiduciary responsibilities.

 Key Considerations:

Establishes strategic priorities and risk limits for the organization.

Ensures that risk management aligns with stakeholder expectations and regulatory requirements.

 Why Not Other Options:

Security (A): Implements controls but does not set risk tolerance.

Business units (B): Manage operational risks but do not set overarching risk appetite.

Audit and compliance (D): Ensures adherence but does not define risk levels.

 EC-Council Framework:

Governance and risk management frameworks emphasize the Board's role in defining and communicating risk appetite to guide organizational decision-making.

Explanation:

Contracting with a managed security service provider (MSSP) offers 24/7 monitoring and incident detection capabilities without adding full-time staff.

Current staff can remain on-call for critical incident response, ensuring coverage without increasing headcount.

Why Other Options Are Incorrect:

A. Deploy a SEIM solution: While useful, a SEIM requires constant monitoring to be effective. Simply reviewing incidents in the morning is insufficient.

C. Configure syslog to send SMS messages: This approach lacks comprehensive monitoring and is reactive rather than proactive.

D. Employ an assumption of breach protocol: This does not address the need for consistent monitoring and is not a direct solution to coverage gaps.

EC-Council CISO Reference:The program highlights the value of MSSPs in enhancing organizational security capabilities while managing costs.

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 Explanation:

Security issues often arise due to vulnerabilities in the code. Training developers in secure coding practices helps mitigate this risk.

A security training program equips developers to identify and address common vulnerabilities like injection flaws, insecure deserialization, and others.

 Why Other Options Are Less Relevant:

A. Network-based intrusion detection systems: Useful for detecting attacks but do not address the root cause of insecure coding.

C. A risk management process: Focuses on organizational risk but does not directly resolve development flaws.

D. An audit management process: Ensures compliance but does not directly enhance developer knowledge or secure coding practices.

 EC-Council CISO Reference:

Emphasis is placed on proactive security measures, including developer training, as a core aspect of reducing vulnerabilities.