ISACA CISM: Which MOST appropriate to add to dashboard for illustrating organization’s risk level to senior management? 

Question

Which of the following is MOST appropriate to add to a dashboard for the purpose of illustrating an organization’s risk level to senior management?

A. Results of risk and control testing
B. Number of reported incidents
C. Budget variance for information security
D. Risk heat map

Answer

D. Risk heat map

Explanation

The correct answer is D. Risk heat map.

A risk heat map is a visual representation of an organization’s risk level. It typically includes information on the likelihood and impact of risks, as well as the current controls in place to mitigate those risks. This information can be used by senior management to make informed decisions about risk management.

The other options are not as appropriate for a dashboard because they do not provide a complete picture of an organization’s risk level.

• Results of risk and control testing: This information can be useful for understanding the effectiveness of current controls, but it does not provide information on the likelihood or impact of risks.
• Number of reported incidents: This information can be useful for tracking the number of incidents that have occurred, but it does not provide information on the likelihood or impact of those incidents.
• Budget variance for information security: This information can be useful for understanding the cost of information security, but it does not provide information on the likelihood or impact of risks.

By using a risk heat map, senior management can quickly and easily see the organization’s risk level and make informed decisions about risk management.

Here are some additional benefits of using a risk heat map:

• Improved communication: A risk heat map can help to improve communication between the information security team and senior management. This can help to ensure that senior management is aware of the organization’s risk level and that the information security team is aligned with senior management’s goals.
• Increased visibility: A risk heat map can help to increase visibility of the organization’s risk level to all employees. This can help to raise awareness of security risks and encourage employees to take steps to mitigate those risks.
• Improved decision-making: A risk heat map can help senior management to make better decisions about risk management. This can help to reduce the organization’s risk exposure and improve its overall security posture.

By using a risk heat map, organizations can improve their risk management process and reduce their risk exposure.

Reference

• Reporting with a cyber risk dashboard | McKinsey
• CISM Certification | Certified Information Security Manager | ISACA
• Earn a CISM Certification | ISACA
• CISM Exam Content Outline | CISM Certification | ISACA
• How to Design a Data Dashboard: Tips and Tricks | Smartsheet
• Types of Dashboards: Strategic, Operational & Analytical (datapine.com)
• Dashboard Design: 7 Best Practices & Examples (qlik.com)
• 13 Executive Dashboard Examples Organized By Department | ClearPoint Strategy
• Executive Dashboard: 5 Examples for Data-Driven Leaders (qlik.com)
• What Is a Risk Heat Map & How Can It Help Your Risk Management Strategy (isaca.org)
• Risk Heat Map – A Powerful Visualization Tool | Balbix
• How To Pass CRISC Exam Easily. Surveys of IT leaders find that… | by Ben Pournader | Medium

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