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NEW QUESTION: 1
Joe, the information security manager, is tasked with calculating risk and selecting controls to protect a
new system. He has identified people, environmental conditions, and events that could affect the new
system. Which of the following does he need to estimate NEXT in order to complete his risk calculations?
Section: Threats and Vulnerabilities
In this question, the security administrator has identified people, environmental conditions, and events that
could affect the new system. The next step of the risk assessment is to determine the vulnerabilities of the
Risk assessment deals with the threats, vulnerabilities, and impacts of a loss of information-processing
capabilities or a loss of information itself. A vulnerability is a weakness that could be exploited by a threat.
Each risk that can be identified should be outlined, described, and evaluated for the likelihood of it
occurring. The key here is to think outside the box. Conventional threats and risks are often too limited
when considering risk assessment.
The key components of a risk-assessment process are outlined here:
Risks to Which the Organization Is Exposed: This component allows you to develop scenarios that can
help you evaluate how to deal with these risks if they occur. An operating system, server, or application
may have known risks in certain environments. You should create a plan for how your organization will
best deal with these risks and the best way to respond.
Risks That Need Addressing: The risk-assessment component also allows an organization to provide a
reality check on which risks are real and which are unlikely. This process helps an organization focus on its
resources as well as on the risks that are most likely to occur. For example, industrial espionage and theft
are likely, but the risk of a hurricane damaging the server room in Indiana is very low. Therefore, more
resources should be allocated to prevent espionage or theft as opposed to the latter possibility.
NEW QUESTION: 2
Company W produces mobile phone components and has recently tendered for a substantial contract. The results of the tendering process will not become available until three months from now. If the company is successful it will require 2,000 units of a commodity which is currently traded in an open commodity market for $740 per unit. However, there has been speculation that this commodity could increase substantially in price over the next three months and so the company is considering purchasing the commodity now and storing it for three months.
The funds to buy the commodity would be borrowed at an annual interest rate of 7% and the storage cost of the product would be $5.40 per unit per month. The storage costs would be paid at the end of the three month storage period.
Which of the following represents the gain or loss (to the nearest thousand dollars) that will accrue to Company W assuming that the price of the commodity rises to $800 in three months' time?
A. $16,000 loss
B. $62,000 gain
C. $88,000 gain
D. $95,000 gain
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