CompTIA CASP+ Practice Test

What is a likely risk implication of the CFO's decision to outsource all IT functions?

1. Increased flexibility in vendor management

2. Lack of internal knowledge of IT systems

3. Improved responsiveness to new technology

4. Enhanced control over vendor performance

The correct answer is: Lack of internal knowledge of IT systems

The risk implication associated with the decision to outsource all IT functions revolves around the potential for a lack of internal knowledge of IT systems. When IT functions are entirely outsourced, the organization may become increasingly dependent on external vendors for critical operations and support. This situation can lead to a gap in internal expertise and understanding of the systems in place. Without sufficient internal knowledge, an organization may struggle to effectively manage or troubleshoot IT issues that arise. This can hinder not only day-to-day operations but also strategic decision-making, as there may be a deficit in understanding how technology impacts business processes. Furthermore, if those external vendors were to change their services, discontinue support, or if legal or financial issues arose with them, the organization might find itself in a vulnerable position, unable to quickly adapt or recover due to the lack of internal expertise and familiarity with its own systems. The other options, while they might present opportunities or advantages, do not directly highlight the risk involved with a complete outsourcing strategy. For instance, increased flexibility in vendor management and enhanced control over vendor performance are benefits that can come from outsourcing but don’t address the inherent risks associated with losing internal knowledge. Similarly, improved responsiveness to new technology may occur, but without internal understanding, an organization might not be able