For purposes of developing a security program, an HR manager must assess potential risks and costs related to loss and protection. Which factor must the manager first examine?
- Severity of impact of the loss to the organization
- Cost of the loss, including a permanent or temporary substitute
- Degree of probability that the loss will occur
- Availability and cost of insurance to cover the loss
Answer(s): C
Explanation:
Answer option C is correct. The significance of various security issues depends partly on the size of the organization. However, regardless of size, the same considerations go into assessing vulnerabilities and the method for estimating the cost of potential losses. The justification of such a
program requires that the potential losses will exceed the cost of the program. See Chapter 8 for more information.
Chapter: Risk Management
Objective: Risk Management
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