The Risk Subcommittee of a Corporate Board Typically Maintains a Master

question 49

Multiple Choice

The risk subcommittee of a corporate board typically maintains a master register of the most prominent risks to the company. A centralized holistic view of risk is particularly important to the corporate Chief Information Security Officer (CISO) because:

• A) IT systems are maintained in silos to minimize interconnected risks and provide clear risk boundaries used to implement compensating controls
• B) risks introduced by a system in one business unit can affect other business units in ways in which the individual business units have no awareness
• C) corporate general counsel requires a single system boundary to determine overall corporate risk exposure
• D) major risks identified by the subcommittee merit the prioritized allocation of scare funding to address cybersecurity concerns

Understand the ease of retrieval effect and its influence on judgment.

Describe and distinguish between fixed and incremental mind-sets and their influences on behavior and learning.

Understand the fundamental attribution error and its implications on social perception.

Identify factors that affect the likelihood of making correspondent inferences about others' behaviors.

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Definitions:

Gross Income

Total income from all sources before deductions, exemptions, and taxes.

Insured

A person or entity covered under an insurance policy, providing protection against specified risks or losses.

Taxable Income

Income subject to tax, after deductions and exemptions, according to federal or state law.

Alimony Payments

Payments made to a spouse or former spouse under a divorce or separation agreement, possibly subject to special tax treatment.