ACCA Applied Knowledge · Business and Technology · Technological factors
A bank adopts a new mobile payments platform and its board wants to manage the cyber risks in a way that is proportionate and consistent with good governance. Which action best achieves this?
The board should ensure risks are assessed, controls are implemented and monitored, and results are reported regularly to the board. This provides oversight and a proactive approach. Delegating entirely to IT, relying only on insurance or reacting after a breach fails to manage the risk adequately.
- ADelegating all cyber risk decisions to the IT department with no board reporting
- BAssessing the risks, implementing controls and monitoring them with regular reporting to the boardCorrect
- CRelying solely on insurance and implementing no preventive controls
- DWaiting until a breach occurs before assessing the risks
Explanation
Good governance requires the board to oversee a cycle of risk assessment, control implementation and monitoring with reporting. Leaving it wholly to IT removes oversight, insurance alone only transfers some financial loss, and waiting for a breach is reactive.
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