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…
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)- A6% (1)
- B6% (1)
- C88% (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.
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