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CISM · Question #498

Which of the following information would BEST enable senior management to assess the value of compliance with new regulations?

The correct answer is C. Impact of noncompliance. To assess the value of compliance, senior management needs to understand what is at stake if the organization does not comply-regulatory fines, legal liability, operational restrictions, and other direct consequences. This information enables a straightforward cost-benefit…

Submitted by diego_uy· Apr 18, 2026Information Security Governance

Question

Which of the following information would BEST enable senior management to assess the value of compliance with new regulations?

Options

  • AStatus of key performance indicators (KPIs)
  • BStatus of key risk indicators (KRIs)
  • CImpact of noncompliance
  • DReputational risk of noncompliance

How the community answered

(16 responses)
  • A
    6% (1)
  • B
    6% (1)
  • C
    88% (14)

Explanation

To assess the value of compliance, senior management needs to understand what is at stake if the organization does not comply-regulatory fines, legal liability, operational restrictions, and other direct consequences. This information enables a straightforward cost-benefit comparison: what compliance costs versus what noncompliance would cost. KPI status (A) reflects operational performance, not compliance value. KRI status (B) shows risk exposure trends but does not quantify the specific consequences of failing to comply with the new regulation. Reputational risk of noncompliance (D) is a valid consideration but is only one component of the total noncompliance impact, making it less complete than option C.

Topics

#Compliance assessment#Risk impact#Senior management reporting#Regulatory compliance

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