Certified in Risk and Information Systems Control (CRISC) — Question 917

Which of the following is MOST helpful in identifying loss magnitude during risk analysis of a new system?

Answer options

• A. Recovery time objective (RTO)
• B. Business impact analysis (BIA)
• C. Cyber insurance coverage
• D. Cost-benefit analysis

Correct answer: B

Explanation

The Business Impact Analysis (BIA) is crucial for assessing the potential impact of disruptions and helps in quantifying loss magnitude. Recovery time objective (RTO) focuses on recovery times rather than loss, cyber insurance coverage pertains to financial protection rather than loss assessment, and cost-benefit analysis evaluates financial viability rather than specific loss impacts.