CGEIT · Question #496
An enterprise is assessing whether to utilize wearable technology. The enterprise has no prior experience with this technology and has asked the chief technology officer (CTO) to assess the impact…
The correct answer is A. understand the enterprise's risk tolerance. When introducing new technology without prior experience, the initial step for a CTO is to understand the organization's overarching risk tolerance to frame all subsequent risk assessments.
Question
An enterprise is assessing whether to utilize wearable technology. The enterprise has no prior experience with this technology and has asked the chief technology officer (CTO) to assess the impact to the enterprise. The CTO should FIRST:
Options
- Aunderstand the enterprise's risk tolerance.
- Bcreate an IT risk scorecard.
- Cprioritize wearable technology risk.
How the community answered
(28 responses)- A86% (24)
- B4% (1)
- C11% (3)
Why each option
When introducing new technology without prior experience, the initial step for a CTO is to understand the organization's overarching risk tolerance to frame all subsequent risk assessments.
Understanding the enterprise's risk tolerance is the foundational step as it defines the acceptable level of risk for the organization, guiding how thoroughly risks related to wearable technology should be assessed and managed. Without knowing the risk tolerance, it is impossible to effectively prioritize or evaluate the impact of identified risks.
Creating an IT risk scorecard is a tool for assessing and documenting risks, but it cannot be effectively used until the underlying risk tolerance is established.
Prioritizing wearable technology risk requires an understanding of what constitutes an acceptable level of risk for the organization in the first place.
Concept tested: Enterprise risk tolerance assessment
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