Question 74
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A vendor has proposed a risk model that calculates exposure without considering asset value. What is a key issue with this approach?
A. It overstates asset depreciation
B. It undervalues risk by ignoring impact
C. It duplicates control efforts
D. It improves monitoring unnecessarily
Answer: B. It undervalues risk by ignoring impact
Asset value is essential to understanding risk impact; without it, calculated exposure lacks business context.