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Why might a risk manager be hesitant to approve the new system mentioned in the analysis?

  1. The system is too expensive

  2. Well-written reports are not trusted

  3. The impact of a successful attack could be severe

  4. Developers are inexperienced

The correct answer is: The impact of a successful attack could be severe

A risk manager's primary responsibility is to evaluate potential risks associated with business decisions and ensure that the organization's risk tolerance is not exceeded. In this case, the risk manager's hesitation to approve the new system is rooted in the concern that the potential impact of a successful attack could be severe. This concern plays a significant role in risk management because if a system is vulnerable and an attack were to occur, the consequences might involve significant financial loss, reputational damage, legal liabilities, or even operational shutdowns. The severity of potential impacts is a critical consideration that can outweigh other factors such as costs or the experience level of developers. A system designed without adequate security measures, or one that handles sensitive data, must be subjected to a thorough risk assessment to ensure that its implementation does not expose the organization to unacceptable threats. In contrast, while factors like cost and developer experience can influence a decision, they do not inherently represent the direct threat to the organization’s security posture the same way that the potential consequences of a successful attack do. A high financial outlay for a system is significant, but it might still be justifiable if the system adequately mitigates risks. Similarly, if developers lack experience but security measures are robust, those concerns may be addressed through proper oversight