Certified Information Security Manager (CISM) — Question 185

Which of the following is MOST important to consider when determining asset valuation?

Answer options

• A. Potential business loss
• B. Asset classification level
• C. Asset recovery cost
• D. Cost of insurance premiums

Correct answer: A

Explanation

The most critical consideration in asset valuation is the potential business loss, as it directly affects the financial stability of the organization. While asset classification level, recovery cost, and insurance premiums are relevant, they do not impact the overall business risk and loss as significantly as potential business loss does.